Apple has stood firm against this, insisting that low, uniform prices keep sales high and discourage the iTunes Store's users from downloading music illegally.

I'm certain Microsoft will cave on this one. It has already given the music industry the other thing the industry has been demanding from Apple: a kickback on every player sold.

"These devices are just repositories for stolen music, and they all know it," said Doug Morris, CEO of Universal Music Group. "So it's time to get paid for it."