The Blog for Video 2.0
Friday, October 12, 2007
Universal looking to take on iTunes
Businessweek details the plans of Universal chief Doug Morris to take on Apple's iTunes music service.
Morris was once a proponent of Apple's iTunes music store, but has since changed his tune. According to Businessweek sources, Morris is joining forces with other record companies to launch an "industry-owned" subscription service.
Representing 75% of music sold in the U.S., they would ask hardware makers or cell carriers to pay them a $5/month subscription fee. In exchange, consumers of their products would get unlimited music at no additional cost to them ("free"). Music companies would get the $5/month and hardware companies would theoretically sell more units.
Of interest, Businessweek notes that despite these efforts to undermine iTunes, Universal can't afford to simply pull their music from iTunes, which holds a 70% marketshare in music downloads.
Morris was once a proponent of Apple's iTunes music store, but has since changed his tune. According to Businessweek sources, Morris is joining forces with other record companies to launch an "industry-owned" subscription service.
Representing 75% of music sold in the U.S., they would ask hardware makers or cell carriers to pay them a $5/month subscription fee. In exchange, consumers of their products would get unlimited music at no additional cost to them ("free"). Music companies would get the $5/month and hardware companies would theoretically sell more units.
Of interest, Businessweek notes that despite these efforts to undermine iTunes, Universal can't afford to simply pull their music from iTunes, which holds a 70% marketshare in music downloads.
Labels: iTunes, music, music downloads, online music, Universal
Friday, July 6, 2007
Universal confirms changes to iTunes deal
Universal Music Group will not renew its long-term licensing agreement with Apple iTunes, instead moving to an 'at-will' model.
It's the end of tough negotiations between the two firms. The previous three-year deal between them expired last year, and a temporary one-year agreement was reached.
Stakes are high: while Universal is the label behind one-in-three records released worldwide, Apple's iTunes service has become the thrid-biggest music retailer in the U.S.
It is thought that Universal wants to be able to offer some music by some bands exclusively through other online music services in its attempt to reduce Apple's control of the online business.
This could mean that music from key artists may not be made available through Apple's service.
It's the end of tough negotiations between the two firms. The previous three-year deal between them expired last year, and a temporary one-year agreement was reached.
Stakes are high: while Universal is the label behind one-in-three records released worldwide, Apple's iTunes service has become the thrid-biggest music retailer in the U.S.
It is thought that Universal wants to be able to offer some music by some bands exclusively through other online music services in its attempt to reduce Apple's control of the online business.
This could mean that music from key artists may not be made available through Apple's service.
Labels: iTunes, music downloads, online music, Universal
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