Basically, they had imbedded software in the files that would prevent you from making copies. Once this got out, there was such backlash that it was scrapped almost before it even began. Think...worse reaction that what Netflix suffered. So, in this case, public outcry, mostly from customers, nipped it in the bud. And no, the legal issues surrounding the making copies of your music files is NOT addressed yet. It's why they enact insane fines on folks they DO manage to catch...they don't just fine you for the download, but for any copies you made, too. The issue in this instance, then, is the law, not the business model. I think Itunes has a great business model. But copyright laws are, in my opinion, in their infancy, and we are simply going through the growing pains. But those pains are being excacerbated by a legislative system that is by the lobbyists, for the lobbyists, which is another way of saying, pro corporate interests, more so than "the people". And the music industry is run by a bunch of codgy old men who still remember the good times they had ripping off the beach boys and the beatles, and the killing they made when tapes replaced records, and so on. What they are FAILING to understand, is that the times have now radically changed, and that there are a LOT of artists who no longer need them, thanks in NO SMALL PART to FTP sites, and places like youtube. And what they are doing, is killing that outside lane, so to speak, because of the POTENTIAL for net losses. Music is still hugely profitable. Music executives still live quite large, as do the artists themselves.
