If the networks turn their backs on iTunes altogether, Apple could also retaliate by moving to a service-based approach. The company has already released a networked set-top device called the AppleTV that allows users to stream photos, music, and video content from computers to a television set. Thus far, response to the AppleTV has been lukewarm, but Apple could change this with a single, simple move: Introduce DVR capabilities.

By letting people record any television content they please and load it into iTunes and their iPods with one-click ease, Apple could avoid having to cut deals with anyone. The company could even sweeten the pot by leveraging its online services and allowing users to save any recorded show to their .Mac accounts, making their favorite television broadcasts accessible from anywhere. Would Apple take such aggressive action against the networks? That's hard to predict, both because Steve Jobs sits on the board of the Walt Disney Co. and because such an approach could damage Apple's ongoing relationship with each network's affiliated music labels. But from an audience perspective, this would be a fantastic outcome, and one that would go a long way toward restoring Apple's flagging reputation as a champion of consumer interests. Networks take note: Whether they sell your content or give it away, Apple's not going away.