I feel that many people here don't really appreciate the importance of this. This is really the beginning of the end of the old ways of the music recording industry, and a new music recording industry is emerging right now. Very interesting times indeed for those of us who are working in this field or anyone who loves music.
And yes, it was Apple, not any of the major record labels or consumer electronics companies that has brought us this change.
I think the end of the end is still some time away. Vinyl has supposedly been dead for some time but they still seem to sell a fair amount of it.
Maybe that's specific to vinyl and other physical media won't see a similar effect but we'll have to see.
Certainly at the prices we see right now CDs are often comparable (sometimes lower) than download prices. All things being equal personally I'll still take the physical item, if only it's because it's a free backup, and I think there are others like me.
It seems to me that the Beatles finally caved to reality. Sure, there are "adults" that still buy physical media, but the "kids" haven't been doing that in a high enough volume to sustain the such a distribution model for a few years now.
http://en.wikipedia.org/wiki/Another_Day_%28Paul_McCartney_s...
iTunes is the top music retailer in the world, even before this. This isn't the beginning of the end of the old ways; it's the Beatles catching up with 2003.
Funnily enough, I already forgot what day it was.