Apple to sell pre-loaded iPods?

I don’t know if it’s true, but Wired makes a convincing case:

The new contract clears the way for Jobs to sell iPods loaded with music.

Who cares?

Well, the iPod could become the new CD, especially if Apple starts offering cheap shuffle iPods pre-loaded with hot new albums or artists’ catalogs. Imagine a whole range of inexpensive, special-edition iPods branded with popular bands containing a new album, or their whole catalogs.

Flash-memory drives are now so cheap, software companies are starting to use them to ship software. H&R Block, for example, is selling the latest version of its tax-preparation software on a flash drive for $40 — the same price as the CD version. How much would it cost Apple to add a few music chips and some cheap earbuds?

Apple was prevented from doing this until now by the 15-year-old contract between Apple Corps, the Beatles’ music company, and Apple Computer. This contract precluded Jobs’ Apple from acting as a music company and from selling CDs or “physical media delivering prerecorded content … (such as a compact disc of the Rolling Stones’ music).”

These cheap album iPods could be sold at bus stations and airports: instant music, no computer required. Bands could sell pre-loaded iPods at concerts, maybe containing the concert they just played. There could be Broadway show iPods, movie soundtrack iPods and iPods burned at retail stores with custom play lists.

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