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The labels wanted a price increase, had been pushing for it for almost a year. Jobs wanted something in return. He got no DRM which he had been pushing for for a few months due to the regulatory climate in the EU. He also got double file size (128 to 256) which will help fill up iPods faster, which will encourage people to buy newer, bigger iPods, which was originally the whole point of the iTunes store, to sell iPods.
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