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I think Apple on the high ground in this fight. By all accounts, their iTunes profit margin is razor thin, for them it's not so much about profit from music sales as it is driving iPod sales. Apple is mainly a computer gadget company, they employed the same strategy with their computers. If you want their advanced operating system, you've got to buy their box. They use the soft merchandise to sell the physical product. It's a model the record industry ought to look at.

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