At the time the store was introduced, purchased audio files used the AAC format with added encryption, based on the FairPlay DRM system. Up to five authorized computers and an unlimited number of iPods could play the files. Burning the files with iTunes as an audio CD, then re-importing would create music files without the DRM. The DRM could also be removed using third-party software. However, in a deal with Apple, EMI began selling DRM-free, higher-quality songs on the iTunes Stores, in a category called "iTunes Plus." While individual songs were made available at a cost of US$1.29, 30¢ more than the cost of a regular DRM song, entire albums were available for the same price, US$9.99, as DRM encoded albums. On October 17, 2007, Apple lowered the cost of individual iTunes Plus songs to US$0.99 per song, the same as DRM encoded tracks. On January 6, 2009, Apple announced that DRM has been removed from 80% of the music catalog, and that it would be removed from all music by April 2009.

When the iTunes store was launched, what type of file format was used?