Universal Music Group not renewing....

[PapaNoHair]

Copied headline from the 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..."

[baggss]

Also note that they are going on a month to month vice a 2 year contract.

I find it interesting that EMI went with DRM free music, and Universal is balking. I think in the end that is going to hurt Universal. They are trying to stick with DRM or subscription and I think the average consumer realizes that. Now that EMI iTunes tracks can be played on any compatible device, Universal is taking a step backwards. They don't want to be locked into Apples system, that's fine, but with DRM free they're not. They simply want the consumer locked into their system, one where they say what you can do and can't do with the music you pay for.

[Aptmunich]

If this turns out to be true, I think it'll hurt universal more than it will Apple at this point...

[johnnyluu]

Anyone else hear the term "Sustained Income" echoing from UMG offices?

Considering the iPhone has sold half a million units, that a bucket load of potential iTunes music purchases on the horizon, with a load more when it gets released everywhere else in the world.

It's not enough that these record companies make billions, there are always ways they can add a few more digits to that number. Just goes to prove that the music industry is just that, an industry.

[Zoolook]

There is somethign odd going on at Universal... they were just about the only studio not to sign up to Blu-Ray, something else Apple is deeply involved with.

Does this affect any TV shows?

[fleurya]

. . . TV shows and movies?

I don't think it'll hurt Universal as much as Apple. If Universal parts with Apple, Apple loses any revenue they would have made from people buying music under them: a crippling third of their content. However, if people want music put out under Universal, they can just get it somewhere else. Sure Universal will lose some sales by not being a part of a major distribution channel like iTunes, but iTunes is just that, a distribution channel. Like buying a loaf of bread from any supermarket, there are plenty of other channels people can go through. Even Jobs said they've only sold 25 tracks per iPod, so people must be getting a lot of their content from other channels.

[Aptmunich]

. . . TV shows and movies?

I don't think it'll hurt Universal as much as Apple. If Universal parts with Apple, Apple loses any revenue they would have made from people buying music under them: a crippling third of their content. However, if people want music put out under Universal, they can just get it somewhere else. Sure Universal will lose some sales by not being a part of a major distribution channel like iTunes, but iTunes is just that, a distribution channel. Like buying a loaf of bread from any supermarket, there are plenty of other channels people can go through. Even Jobs said they've only sold 25 tracks per iPod, so people must be getting a lot of their content from other channels.

Actually I'd disagree:
Sure there are lots of other channels through which to purchase music, but the iTunes Store is the only channel through which to sell content that works with the iPod / iPhone.

Most people I know are more interested in the device than the content.

[baggss]

so people must be getting a lot of their content from other channels.

Yes, but those "other channels" are not other on-line music stores, they are CDs and P2P...