Skype strikes deals with music publishers | CNET News.com: "Skype, the free Internet calling service owned by eBay, has struck deals with three major music publishers to distribute hundreds of thousands of songs as ring tones.
"We won't be selling full songs," said Erica Jostedt, a spokeswoman for Skype. "There are no plans for selling music online other than in the form of a ring tone."
Additional sources and distribution channels are coming up live with digital content downloads.
As we predicted, internet infrastructure is slowly changing to accomodate a/v as the main payload.
I wonder who is going to win the DRM war, Microsoft or Apple? I would bet on Microsoft, because, firstly, they are more desperate for business, and secondly, they love playing the deverticalization game.
Whoever gets a foothold in the mobile phone/player market is going to not only reap major profits, but also build a system-level strategic control point.