Digital music services are really at a cross-roads now. The increase in digital music sales is slowing, while physical sales are plummeting. The former is not enough to make up the latter and so if digital music is to replace physical sales, digital music services are going to have to match-up in terms of what is on offer.
DRM is the sticking point. There’s no way in which such a restriction would be allowed by the public on a physical format, they simply would walk away and that’s exactly the danger for digital music. Apple’s Fairplay and Microsoft’s Zune may well be the dominant formats for 2007 but the bubble is close to bursting.
Check out this Newsweek article, which I think is only the tip of the forthcoming publicity iceberg for DMS.