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In the short term, though, iTunes is still sitting pretty. And, just last week, the online music retail giant took another step toward maintaining its position at the top, announcing that 8 million songs in the store's catalog are now available for purchase without the Digital Rights Management restriction that prevented songs from being played in other platforms.
But the challenges to iTunes are mounting nonetheless. We've only just begun this new paradigm, and there's still time for the playing field to shift.
Remember: AOL was a dominant technology company at one point. Similarly, iTunes is little more than a portal to content available elsewhere.
"The question," as Smith puts it, "is whether there's such a thing as broadband in the iPod world."
For the time being, hold the phone.