1. Amazon sells music through its website by allowing users to download the music file onto their computer after paying a set price per song. Fairly straight forward, they earn money by charging consumers per song that they download. After downloading the file, Amazon places no special restrictions on the file itself, which allows users to do anything they want with the data after they receive it.
2. Pandora allows their users to listen to music using their online flash player and cellphone player. The player itself streams the music off their website and is not completely kept on the user's computer, which keeps the user from completely keeping a copy of the song for themselves. Their profit model is selling ads and partnering with Amazon and the iTunes music store to sell music that the user has 'tagged' while listening to them.
The restriction that Pandora places on their users is that they cannot choose which specific song to listen to, and that they don't get to keep the song after they have heard it
3. The iTunes Store allows users to purchase music through their service. Their profit scheme is to charge users per song downloaded, and the pricing varies depending on what kind of song you choose to download.
The music downloaded from the iTunes store has certain limits, depending on which kind you purchase. The regular-price songs have DRM in them, which allows them to be played only by anything that Apple approves of such as iTunes and their iPod line of products. The DRM-free version of songs come at an increased cost, but they do not have restrictions on them.
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