Just in case you hadn’t heard – iTunes is officially dropping DRM and will be releasing all future tracks as 256 kbs AAC files (very high quality audio format).

This is a true sign that the music industry has accepted that the right way to manage piracy isn’t by making consumers jump through ridiculous security hoops, but by offering a high quality convenient service.

Apple will also be allowing iPhone users to download tracks directly to their phone via the 3G network as opposed to only being able to download via a wireless network.

From Apple’s perspective this could continue to boost sales of their products such as the iPod and iPhone due to increased flexibility, but it might also cause a decline in market share for iTunes as their current iPod and iPhone users will be less restricted in their choice of music download services.

The end of DRM might embolden a host of new, online download venues and other ventures as traditional album sales slump. Album sales fell 9.5 percent in 2007 while the sale of digital tracks rose 45 percent.

You can read about the iTunes changes in more detail here.