I see MS selling music for 50 cents or 25 cents a song.
I'm sure it will eat money there, before it eats money on its player.
Once the market share is dominatly MS, (and it will be), they will jack the price's.
I'm sure the music industry will give them a discounted price for a few years so they can even the playing field, and then dictate to Apple what the price per song will be.
Remember, the RIAA is ruthless when it comes to business. For them, it's completely about control and has nothing to do with $$ or music or artists.
To this day, regardless of whether an artist has a contract or not with a major label, the online radio stations that broadcast their songs must pay a royalty to the RIAA. Essentially they control all internet radio.
Control over the delivery system of music is all they have in mind. Having Steve Jobs dictate to them how things are going to be... is probably the biggest slap in the face yet.
Who knows what new DRM is in Vista where music is concerned. I'm sure it's something heinous thou, that will give complete control over music files to the RIAA. ie. Files will be locked down from any sharing protocal.
To think that MS and the RIAA have not conspired on this is fool hardy.
Lets not forget who has 90% market share and who has 3%.
Apple's market share with pods and itunes is fleeting.
The RIAA will make sure Apple is toppled. Otherwise, it's just bad for business.
Sorry to burst the bubble... and damnit, i hope i'm wrong.