Universal to Apple: No Deal On iTunes at Portable Planet

Universal to Apple: No Deal On iTunes

Published by Jeremy Stillman July 3rd, 2007 in Tech.

Universal rejects long term contract with Apple over iTunes

According to published reports, Universal Music Group has decided to reject a long-term contract with Apple to sell music over iTunes. The decision not to renew the two year agreement is a blow to Apple, as UMG is the world’s largest record company.

“This is a bit of gamesmanship on Universal’s part. Apple can’t afford to have to turn around to its customers and say it no longer offers Universal’s catalogue, and Universal is hoping is that this may prompt Apple to renegotiate their revenue split,” said Rebecca Jennings, an analyst at Forrester.

“Apple’s monopoly in the music download market has come to be a source of unease for the record industry in the past couple of years.”

Many labels have been upset with the company’s fixed price of 99 cents per song ($1.29 per for EMI tunes with no DRM) and would like to see more options available to consumers. Has the mutiny begun, or this an isolated incident?

Source: Wall Street Journal

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