[Nodnarb]

If true, that's incredible if they really do not put it on.

I can't see them going through with it though...Apple is #1 online and #3 overall...that is just foolish business on their end.

[Lava Lamp Freak]

From Drudge Report

FLASH: APPLE FACES A REBELLION OVER ITUNES... Universal Music Group, the world's biggest music corporation, notified Apple that it will not renew its annual contract to sell music through iTunes... Developing...

Wow, this could be big. WTF are they thinking? Is this just a ploy to get more money?

[davesimondotcom]

I'll bet it doesn't last. Apple is the 800 pound gorilla in this thing now...

[Cold Warrior]

The music biz pigopolists are the cause of their own ruin. Their business acumen is pathetic and staggering in its incompetence.

[Eug]

I hope it makes Apple be more flexible with iTunes.

Apple's stubbornness with iTunes is sometimes a little too much.

[Nodnarb]

So this is just going to be a big game of "my music is there now, but if you don't do "x" it may not be there tomorrow!" I seriously doubt they'll make the move and take it off the store.

Edit:...I posted this after mduells post...and the OP gost deleted? Forums are acting weird tonight...

[mduell]

They're only declining to sign a long-term (1 year) contract... they're going to stay on iTMS with a shorter contract.

[Chuckit]

It's a ploy to get more money, and I'm predicting it's not going to work. Universal needs Apple far more than Apple needs universal. Universal pulls tracks from Music Store = more people get Universal's stuff through "alternative" channels.

[Kerrigan]

The music company could now agree to offer significant portions of its repertoire exclusively to new partners, potentially weakening Apple's dominant hold on digital music retail.

Universal Music declines long-term iTunes deal: source | Reuters

[Buckaroo]

http://www.variety.com/article/VR111...goryid=18&cs=1


The move does not mean, however, that Universal will remove its catalog from iTunes immediately. Rather, the world's largest music company is expected to arrange a short-term sales agreement.

[stevesnj]

sounds like they want their music price raised to $1.29 song DRM!

[Chuckit]

Originally Posted by Kerrigan 

The music company could now agree to offer significant portions of its repertoire exclusively to new partners, potentially weakening Apple's dominant hold on digital music retail.

Universal Music declines long-term iTunes deal: source | Reuters

Unless those places are offering non-DRM AAC or MP3, I think not. As I said, a Zune exclusive is what's known in industry terms as "Oh, I'll just get that off Limewire."

[wallinbl]

They're doing this because of the iPhone. They think that Apple now has more riding on iTMS and will be more likely to give in. With SJ acting like the iPhone is the biggest thing since the original Mac, it would suck for them to lose a large chunk of the music in iTMS.

[shifuimam]

Universal, which produces one in three albums sold in the United States, has been leading the push by music companies to demand that new technology and media partners who want to license music share in the proceeds of the new products as well. Last year Universal signed a deal with Microsoft Corp. to take a small share of sales of its digital media player, the Zune.

I couldn't care less if you can or can't buy music owned by Universal/Vivendi on iTunes. However, this is stupid. The RIAA won't rest until it is profiting from every step in aquiring and listening to music, from the recording hardware purchased to cut the albums, the manufacturing equipment to create the CDs, the digital music players and regular old boomboxes to listen to the music...I'm sure they'll try to cut a deal with Bose, too, since they make the speakers that push the sound waves to the user!

Plus, it's not that Universal is pulling their music from iTunes. They just didn't want to sign a two-year exclusive deal with Apple, which means that they can now sell their music on other online stores (Napster, Urge, whatever online music service I'm sure Google will come out with before the end of the year, etc.)...which seems fair enough to me.

[Y3a]

I think music companies and artists are putting too high a value on their music. it's entertainment, NOT A REQUIREMENT FOR LIFE. It comes from the entertainment folks doing too much drugs, hanging around entertainment types and telling each other how great they are. Then they go into the studio, where everyrthing has to be 'fixed' so they can sell the BS they produce.

[Dakarʒ]

Would a life without music be worth living?

It'd be very boring, indeed.

[Oversoul]

Universal and every other label on iTunes seem to have a good thing going -- iTunes saves them on the cost of physical manufacturing, packaging, and distributing it to retailers and it ensures quick download delivery to a consumer base of ~100 million.

Other than their whetting appetite at Apple's iTunes/iPod profits, what has changed to justify Universal getting more out of their deal with Apple? What has Universal done to add to the development of iTunes? Certainly not offering higher quality, DRM-free music like EMI. Has Universal contributed any to the development of the iTunes music store or the iPod? Especially with the iPod, what has Universal added that would give them a cut of profit off Apple's efforts?

I mean, other than being on the iTunes store and reaping already generous profits?

What next? Play hardball with Walmart, Best Buy, and Amazon and demand a cut of their profits off every music player they sell?

[Kerrigan]

Originally Posted by Oversoul 

What has Universal done to add to the development of iTunes?

They supply about 1/3 of what iTunes sells.

[TETENAL]

Originally Posted by shifuimam 

It makes no sense for Universal to contractually limit themselves to iTunes.

I don't think they ever did. The contracts Apple has with the labels are not exclusive.

[shifuimam]

Originally Posted by Oversoul 

Universal and every other label on iTunes seem to have a good thing going -- iTunes saves them on the cost of physical manufacturing, packaging, and distributing it to retailers and it ensures quick download delivery to a consumer base of ~100 million.

Other than the admittedly wider customer base on iTunes, everything else you said applies to any digital music store. It makes no sense for Universal to contractually limit themselves to iTunes (which, because Apple has a chokehold on it, limits Universal to iPods, as well), therefore cutting out an entire customer base that - gasp - doesn't want to buy iPods or buy Apple.

[Y3a]

Universal has done NOTHING for the development of iTunes or iPod. They just slog out music of numerous types. I think the music industry want another 'Loss year" for tax purposes.

[Chuckit]

Originally Posted by TETENAL 

I don't think they ever did. The contracts Apple has with the labels are not exclusive.

Actually, isn't Universal music already on the Zune?

[Jawbone54]

A lot of people I know have stopped buying/downloading music online and started buying CDs again. This probably won't help.

[OAW]

Originally Posted by shifuimam 

Other than the admittedly wider customer base on iTunes, everything else you said applies to any digital music store. It makes no sense for Universal to contractually limit themselves to iTunes (which, because Apple has a chokehold on it, limits Universal to iPods, as well), therefore cutting out an entire customer base that - gasp - doesn't want to buy iPods or buy Apple.

Whoever said Universal was contractually limited to just iTunes? That has never been the case. Universal sells its music on various online platforms outside of iTunes. Not very well, of course, given iTunes' market share but they are there.

Essentially with this move Universal is offering its catalog to iTunes on a "month to month" basis ... where terms and conditions could conceivably be altered at that interval ... rather than sign a 2 year deal where terms and conditions are set for the period covered by the contract. Apparently Universal wants to initiate a d*ck measuring contest with Apple and try to use the threat of pulling their catalog at any given time as leverage to get Apple to give in on pricing, etc. Of course, Apple is the #3 music retailer and the undisputed 800 lb gorilla in the digital music market ... which happens to be the only segment of the music business that is actually growing and not in all out collapse. So we'll see if Universal is stupid enough to cut off its nose to spite its face.

OAW

[shifuimam]

Originally Posted by OAW 

Whoever said Universal was contractually limited to just iTunes? That has never been the case. Universal sells its music on various online platforms outside of iTunes. Not very well, of course, given iTunes' market share but they are there.

Ok...I misread the article. Whoops.

In that case, they likely do have some strategy for maximizing profits before locking themselves into a contract with Apple - or anyone else.

[Gankdawg]

Originally Posted by Jawbone54 

A lot of people I know have stopped buying/downloading music online and started buying CDs again. This probably won't help.

I can say I am definitely not one of these people. In fact, I had stopped buying CDs altogether because I was tired of buying the whole CD for 1 or 2 good songs. With iTMS, I have an avenue to legally obtain songs I like one at a time. I will never buy a physical CD again. So this move by Universal will not get me back into the brick-and-mortar store to buy CDs.

[OldManMac]

Originally Posted by Jawbone54 

A lot of people I know have stopped buying/downloading music online and started buying CDs again. This probably won't help.

Anecdotal stories don't translate to real situations. CD sales are down 20% from last year.

Accounting for the big plunge in "music sales": the digital singles effect

[TETENAL]

I have a solution for Universal: Retract from iTunes, open your own store, follow EMI's example and do without DRM, therefore have full access to all iPods and iPhones. Voilà! Now you have full control over the price.

[analogika]

Originally Posted by Y3a 

I think music companies and artists are putting too high a value on their music. it's entertainment, NOT A REQUIREMENT FOR LIFE.

Actually, for the ARTIST, and in fact for EVERYONE else, it IS a "REQUIREMENT FOR LIFE" to get paid for doing your job.

The days of half-pound coke-fests thrown for the duration of the tour have been over for at least a decade in the music business - at least for the vast majority of the artists.

I won't speak for the industry guys, though.

[analogika]

Originally Posted by Chuckit 

Actually, isn't Universal music already on the Zune?

Universal are ****wit highway-robbing bastards that have OFFICIALLY CRIMINALIZED EVERY SINGLE ZUNE USER by demanding - and *receiving* - $1 off every single Zune sold in deference to the "fact" that it's going to be used for listening to pirated music.

This is one company (Sony another) that can burn in hell, AFAIC.