It seems like the music part of this offering amounts to Apple cutting a deal with the music labels that, in part, allows billions of bad old BladeEnc rips downloaded from Napster to be "laundered" into legitimate AAC tracks. Apple pays the music labels a hundred million or two, so the labels have retroactively turned the old downloaders into paying customers, of a sort. And for these laundering services, each of them reimburses Apple to the tune of $25 per year (storage and sync notwithstanding).