IIRC, Apple wrote checks totaling $150M last week to make this happen.
This, vs. Amazon blindsiding the publishers. Sometimes what’s legal is still a bad move.
I think some arm twisting had to go into it too. Remember, Apple had to drag the labels screaming and kicking into the digital age even with the dollar signs right there to see. They’re so paranoid, so controlling, they can’t see profit right before their eyes. This is the same group that wanted mix tapes to be banned. I have bought probably a few hundred CDs and tapes based on mix tapes I’ve received. One tape alone was so good, it got me hooked on bands resulting in about a hundred purchases. But the MAFIAA is too blind to recognize free and effective promotion.
On the other hand, as you reminded with Amazon, it’s a good idea not to just blatantly piss them off and look greedy. Jobs has been good at putting a choke collar on the MAFIAA execs and leading them to profit. They may find it initially painful, but they sure like the results they get later.