ITunes is one of the last major online music stores to drop digital rights management. One of iTunes’ most serious competitors – Amazon MP3 – officially launched one year ago without any DRM.

The announcement was made in San Francisco at Macworld by Apple marketing exec Philip Schiller, who also said iTunes is adopting a three-tier pricing strategy – 69 cents, 99 cents and $1.29 – depending on which labels the songs come from.

This year’s Macworld was the first in a decade without Apple CEO Steve Jobs delivering the keynote address, with that duty falling upon Schiller. In an open letter posted on, Jobs cited a hormone imbalance that had been “robbing” him of needed body proteins, adding that he is in treatment for the ailment.