Report: Music labels delay Euro iTunes Music Store fearing Apple domination

“Music labels are dragging their feet in licensing their songs to Apple Computer because they fear its long-promised European music download site will dominate the online business, industry insiders say,” Charles Arthur reports for The Independent.

“The five main record labels are understood to be scared that Apple, which makes the iPod digital music player, will become as successful in Europe as it has in the US, where it has 70 per cent of the legal download business. That could let it dictate which stars or records succeed or fail by deciding which to promote on its site,” Arthur reports.

Full article here.

45 Comments

  1. At this point, all current online,usic stores can open a European version at the same time. Let them all go and may the best service (iTunes) win! Not to mention how hot the iPods are right now. If they wait till summer, Apple will take an even bigger lead in europe because they will be able to release the mini there at the same time, which withcause a huge influx of iPod+iTunes customers, I dont see the DellDj having the same impact.

  2. Umm, why exactly is it a bad thing for iTMS to dominate the market? If they license their songs to Apple, and Apple dominates, then doesn’t that just mean more sales?

  3. “Umm, why exactly is it a bad thing for iTMS to dominate the market? If they license their songs to Apple, and Apple dominates, then doesn’t that just mean more sales?”

    It means someone other than the labels gets to choose what’s hot and what’s not. MTV is the only one in that position right now, and the labels can’t stand them as it is. That’s also why they don’t like downloading by song…it lets the listener choose what’s good and what’s bad instead of being subjected to 11 goods songs on a $15 album they bought for the 1 good song. It means the labels will actually have to work for their money.

  4. Face it. Apple is an American company and we are not liked very much right now. The EU goes after Microsoft then drags their feet on Apple. If a European company could offer some competition, they’d jump on it.

    I’m in no way defending MS. I can’t stand their bully business model. As for Apple, they just have the best music store and music player in the world. No bullying necessary.

  5. I have to agree with Plush. Record labels hate MTV, MTV gives far too much control for choosing what is hot or not to the viewers. Sure MTV pushes popular music, but many acts that labels were pushing have failed. Look at O-Town or 98 degrees. iTunes gives more choice to the listeners. Despite grips about the lack of Techno or Indie music, more users are exposed to Indie music through iTunes, and let’s face it on any given day you can find Folk Music, Jazz or World Music, and Independent Artist in the top 100 on iTunes. I bet it’s scary for them that Independent artist get the same level of promotion as the Big 5 Artist. They’d far per something that they could control.

    This also harkens back to the DRM changes in the new iTunes 4.5. I think most people were happy to get 5 computers, and willing to lose 3 burns, but you can bet the Big 5 pushed for this, as part of their renewal contracts. Remember Apple only had a year contract with labels, a contract set to renew within weeks of/before the one year anniversity of iTMS. I’m certain Jobs and crew were negotiate hell trying to keep the terms as close to as is now, and still make things palatable for users.

    DRM is all about control, and not Apple’s control but the Big 5 control. Most of the Independent labels could probablly care less if the files were protect.

  6. this is utter BS.. as it is.. online music is about what.. 0.5% of retail sales and 0.01% of stolen music on kazaa et al.?

    what a worthless argument.. as it is.. the domination of p2p music isn’t helping the labels much is it..?

    so will they let napster in for a few weeks before apple gets in”

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