Universal refuses to renew music deal with Apple

[[bear]]

Steven P. Jobs, the co-founder and chief executive of Apple, is an emerging force in the mobile phone business, thanks to the snaking lines of gadget fans who queued up last week to buy the iPhone. But now he faces a headache in an industry Apple already dominates ? digital music.

The Universal Music Group of Vivendi, the world?s biggest music corporation, last week notified Apple that it will not renew its annual contract to sell music through iTunes, according to executives briefed on the issue who asked for anonymity because negotiations between the companies are confidential.

Instead, Universal said that it would market music to Apple at will, a move that could allow Universal to remove its songs from the iTunes service on short notice if the two sides do not agree on pricing or other terms in the future, these executives said.

Universal?s roster of artists includes stars like U2, Akon and Amy Winehouse.

source: NY Times

lol.. if universal were to pull out.. they would be losing a lot of money. Digital distribution is the future.. Oh well whatever

[Chaos at Dawn]

Yeah but remember digital distribution is no good if you haven't got anything to distribute.

[Toology]

That's up for debate. Who needs who more? I think iTunes needs the array of Universal music artists more than Universal needs iTunes to sell music. This may be in response to Apple's refusal to introduce tiered pricing in which case Universal and other music labels will just find an online distributer who will bow to their demands.

[Quillz]

Good thing I don't buy music from iTunes or Universal.

[The_Decryptor Veteran]

Yeah, probably because they want to charge more music, and Apple want to keep the prices fair.

[Sniper101]

Yeah, probably because they want to charge more music, and Apple want to keep the prices fair.

Just what i was about to say :p o well, yes it will be that because no one buys cd's anymore.

[mattrobs]

Oh crap, that's bad.

[*John*]

*Worries* :unsure:

[Allan]

what's this about buying music? HOW does that work? *CONFUSED*

[Berserk87]

what's this about buying music? HOW does that work? *CONFUSED*

thats whats going happen if the prices go up :wacko:

[FloatingFatMan]

People still buy all the crap that comes out? I haven't bought a CD for over 10 years... Nor do I bother to download pirated music either... It's all 99.9% rubbish these days.

Personally, I couldn't care less if all the music studios, iTunes, and most of the bands all went bankrupt. Maybe it'll poke them into producing decent music again; that's for entertainment, not profiteering from crap.

[Guest jgrodri]

eerily quiet in here.... ppl are torn apart by their hate of apple and of the music industry, they don't know which to support in this one :)

[Rappy Veteran]

That's pretty crap...

[kinetix63 Veteran]

Until either Apple or Universal announces this officially, I'm taking this with a pinch of salt.

[L3thal Veteran]

They have to grow up and have a seat and negotiate another deal. No need for one side to indirectly threaten the other by withdrawing all their music.

[ritsuke Veteran]

I wouldn't be surprised if Universal is partly doing this to manipulate the market. Bring out this news, cause stocks to fall...In come the private brokerages to buy out the reduced stock - and to the off-shore accounts!

Everyone! Put on your aluminum foil hats! Ma Bell is listening! :alien: FREE MASONS!!

Seriously, UMG's higher-up's already consider MP3 owner's as Yargy Music Pirates. This is hardly a surprise after they strong armed MS to pay that $1 Zune royalty...

I hope these struggles go in favor of the artists, whoever comes out on top.

Apple should just let them go month-to-month.

[Hurmoth]

Yeah, probably because they want to charge more music, and Apple want to keep the prices fair.

I'd agree with this. Stupid Universal, what is with these greedy companies!

[Allan]

thats whats going happen if the prices go up :wacko:

being Canuck, I download all my music free, and RIAA can't do nottin' so I never "buy" music, and it's such a foreign concept to me *L*