“Imagine a world where every online store sells DRM-free music encoded in open licensable formats.”

-Steve Jobs

I have a question Mr. Jobs. In this world you are asking me to imagine, are you licensing the Windows Media formats from Microsoft? Is there any doubt as to what the answer to this question will be?

In a DRM-free world Windows Media formats are basically dead. Online stores locked out of the iPod because of FairPlay. Will not choose to lock themselves out by using only Windows Media if they use it at all. I think it’s obvious that the people at Microsoft know that. When the number one MP3 player will never support your format, Microsoft is left with a lot invested in something that won’t amount to much. The only way Microsoft can save its investment in Windows Media is to have a DRM Windows Media player that is a run away success. This is why Microsoft will not join with Apple in calling for a DRM-free world. They need DRM so they are going to fight for it.

As for Norway going after the iTS/iPod lock-in, I believe Jobs when he says Apple will be happy to give up DRM. What is more important to the iTS, the lock-in with iPod or shipping as part of iTunes with every iPod? I think the latter is the most important thing to the iTS success and Apple knows that. Sure they lose the lock-in, but they can live with out it and in doing so stick it to Microsoft.