The idea is that "iTunes LP" would serve as the non-song content you used to get when you bought an album: the beautiful LP cover, lyrics, and other stuff. But upgraded to the digital era.
The problem with this non-story is that Apple isn't selling iTunes LP extras, it's giving it away when you buy the regular album associated with it.
The same format is used to deliver iTunes Extras, the same bonus format for movies. Essentially, both are designed to make extremely easy to author bonus content that labels and studios (including indies) can use to add value to their existing work.
Obviously, Apple doesn't want to launch the new format with a bunch of crap, and taint it with mocking commentary that equates garbage or wierdo music with the format. So it launched the new format with iTunes 9 using a dozen big music acts and a similar number of recent movies. There has been the typical hysterical fit from poorly sourced, half-right "tech news" pieces that claimed Apple hates indies and will charge $10,000 (!) to develop the titles.
This is clearly all uninformed bullshit because there's no way Apple would develop content for third parties for just $10,000 a pop. Not even a professional authoring artist would do these for that kind of budget. Compare the free involved with authoring a DVD or BluRay disc, or creating all the artwork for a band's website or a multimedia CD-ROM.
Slashdot picked up the story and keeps trying to bump it up into the air because it sounds bad for Apple. The reality is that this is the best possible album format design anyone in the FOSS community could have hoped for. It's open, you can built it yourself, and kids can even apply some remedial HTML skills to remix their own content downloads. It's the web with a minimal business model.
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