>> Come on, Apple didn't want DRM, labels insisted on it.https://web.archive.org/web/20080107121341/http://www.apple....
> The third alternative is to abolish DRMs entirely. Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat. If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store. Every iPod ever made will play this DRM-free music.
"Thoughts on Music" | Steve Jobs | February 6, 2007
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And I've got a bridge in Alaska to sell you. Taking Jobs 100% at his word (i.e. Apple was dedicated to DRM-free music, was in continual negotiation with the labels to strip it, and was contractually obligated to continue to use it despite their reluctance), here's how the timeline ultimately turned out:
* October 23, 2001 - First iPod introduced
* April 28, 2003 - iTunes Store w/ Fairplay introduced
* February 6, 2007 - Job's "Thoughts on Music" letter
* April 2, 2007 - EMI agrees to sell iTunes catalog DRM free (initially for slightly higher price)
* ~ August, 2007(?) - Universal sells DRM-free tracks on iTunes Store competitors
* January-April 2009 - Apple completely(?) removes Fairplay from all iTunes Store tracks
Now, you can dig up a few different charts concerning Apple's iTunes music sales. Presumably, they're all compiled from SEC filings, so they track fairly closely. Let's use these two: http://www.asymco.com/2014/02/10/fortune-130/ or https://musicindustryblog.wordpress.com/tag/app-store/ (both offer absolute sales, not % breakdown)
The most notable thing to me is that around mid-'07 to '09, you start to see music sales no longer experiencing the same growth. Incidentally, app and video sales begin in approximately the same period and fill in to maintain total growth -- no one ever accused Apple of being stupid. Point being, by the time Apple removed DRM (and debatable in terms of Jobs' letter's timing depending on how their higher-fidelity internal numbers were looking), music was on the decline.
End result: Apple had 4 years of first mover advantage, then did away with DRM at a time when music sales were no longer experiencing growth.
Are savvy business / PR decisions and coincidence from an altruistic Apple both explanations for the above? Yes. Do I personally believe Apple was pushing tooth and nail to undermine a key business strength of their platform the entire time? No.
(Feel free to correct my timeline or numbers if I'm off on something. This isn't exhaustively researched!)