When launching the iPod music player and the iTunes music store, Apple deeply integrated the functionality of both but allowed consumers to use their iPods to playback unlicensed music not purchased from iTunes or other digital stores. This choice…

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Reduced Apple’s potential profits, but was necessary in order for the record labels to agree to license their music recordings to Apple.

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Was profitable for Apple because iTunes music sales were the main source of profits for its music business.

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Was profitable for Apple because iPod sales were the main source of profits for its music business.

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Reduced Apple’s potential profits, but was necessary given that competitors were already offering this functionality.

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When launching the iPod music player and the iTunes music store, Apple deeply in...

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