Apple has come to an agreement with Universal Music Group, Warner Music Group and Sony Music that will give iTunes their songs in MP3 format. The majors get a three-tiered pricing structure (not dynamic pricing, and only slightly variable pricing) that finally gives them the ability to price according to demand. There is also word that iPhone users will be able to download from iTunes through their cellular carrier.

The news has been covered widely, and there has been some interesting opinion out there. One blogger thinks there is no reason to ever shop at anywhere but iTunes (I wholeheartedly disagree, compatibility with the iPod is only one reason to shop there). Another believes allowing iPhone users to download via cellular carriers could lead to explosive mobile music sales (if that happens they will probably just replace normal downloads and result in a wash). No, the important effects of this news are further under the surface.

In the near term, labels will be able to see how consumer demand reacts to price. I believe actively sale pricing titles will get more movement than permanent, lower prices on some titles. But we'll see. That's the point. iTunes customers' price sensitivity can now be better measured. Much can be gained from the resulting sales data.

Overall, this impact of this new development will be more difficult to quantify. In this age of immediate information and immediate gratification, people want immediate results. They will get few immediate results here. Good decisions do not always have immediate impacts. Dropping DRM from downloads -- those that are not part of tethered subscription plans -- will simply help in the long run.

Think of a time line that has been permanently altered. The previous scenario -- a future with DRM -- looked bleak compared to the new future. DRM would be a hindrance no matter what new services, hardware or software come down the pike. New download-based sales models wouldn't stand a chance with it. That makes iTunes' loss of DRM is an important step toward the future.