The service acknowledges a well-known fact - that most music on iPods, iPhones and iPads was ripped or swapped. Apple reached a deal that gives recording companies more than 70 percent of the new fees, addressing a dark secret that has crippled the music industry, and provides them with some economic payback.
"The chances are awfully good that we've got the songs in our store that you've ripped," Jobs said.
Where songs can't be identified - say of bootlegged concert recordings - users can manually upload them to the cloud and gain the same access.
"It allows for revenue to be made off of pirated music in a way that consumers don't feel that's what they're paying for, and that's what I find fascinating about it," Price said.