I'm the one quoted there (RJ). It's worth pointing out that I've not worked at Last.fm for a couple of years, and the chat log (which I posted) doesn't mention Last.fm at all.
That said, I still think my analysis is bang on.
What Apple have done will really cripple anyone reselling/licensing content (Spotify, Last.fm, Netflix etc).
The obvious long term result is Spotify, Last.fm, Netflix etc are going to dump apple. Then a new company will resell Last.fm content at a 40% markup to sidestep the apple rules. Bad PR is then going to force apple to rethink their stance.
However, I expect Apple is going to offer "deals" to the major players.
I think Apple will be happy to have all the music subscription apps go away. They bought lala.com and I expect them to have an iTunes subscription service before long.
You know, just putting co-founder in the title doesn't actually explain that he's not with the company anymore... it just means founded it with someone else (unless co-founder means someone who founded a company with someone and then left? could be my bad english failing me..)
That said, I still think my analysis is bang on.
What Apple have done will really cripple anyone reselling/licensing content (Spotify, Last.fm, Netflix etc).