Apple Inc (AAPL)

[fmikehugo]

07:46 AAPL Apple, Amazon set to squeeze music labels over DRM - AppleInsider (93.51 ) -Update-

AppleInsider reports following its landmark deal with EMI this month to banish digital rights mgmt from the label's iTunes tracks, Apple is said to be flush with confidence and is pushing the other three major labels into an unenviable negotiating position, according to clandestine sources within the organizations.

Though Sony-BMG (SNE), Universal and Warner (WMG)have all to date successfully resisted calls to end the use of DRM, the cos now find themselves on the defensive. The iTunes operator is allegedly using the clout gained from the EMI contract to push for DRM-free music when royalties and variable pricing had been the focal points until April.

The situation was made all the worse on Monday when Britain's paper The Times caught word of a potential Amazon (AMZN) deal that would also have the web retailer sell music without digital padlocks, but choosing MP3 files over Apple's preferred AAC formats.

Taking an even more bullish stance than its prospective rival, Amazon is reportedly drawing on the momentum of the EMI decision in hopes that it can secure ideal terms for its store's May debut -- even if it means dropping most major-label music in favor of EMI and independents, as the co doesn't have the safety net of protected but lower-quality DRM should talks end in failure.