BMW 1 Series Reference Manual page 27

With the adapter cable, the USB connection is used to control the iPod and the jack
socket for audio playback. The reason for this method of connection is that music tracks
obtained from iTunes are subject to DRM and can only be played on the device to which
they were downloaded. The copyright protection prevents digital transmission of the
music track via USB.
If a video file is selected on the iPod, only the sound track is played. If other supported
USB mass storage devices are used, video files are not displayed. It is only possible to
access the files on the mass storage device using the iDrive when the USB mass storage
device is connected to the USB interface. If the mass storage device is connected using
the jack plug, the iDrive cannot be used to operate the device.
The Y cable is supplied with the vehicle and also may be ordered through
BMW Parts Sales.
A convenient media player holder is located under the arm rest.
Note: For more information on the USB Audio interface refer
to the March 07 Updates reference information.
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E82 Complete Vehicle