“Apple has won an unusual vote of confidence from the European music industry. The major labels are so convinced that the Mac maker’s iTunes Music Service will successfully dominate the online music market over here, they are allegedly playing hard to get in Apple’s content licensing negotiations,” Tony Smith reports for The Register.
“According to a report in the Independent newspaper, industry insiders claim the labels fear giving their songs to Apple for too little. They cite the example of MTV, which grew on the back of the promo videos the industry provided it for next to nothing,” Smith reports. “‘The older record executives don’t want that again, where they’re over a barrel with one big provider,’ a source said.”
Smith reports, “Maybe not, but why then are they willing to license content to other suppliers? It’s by no means a monopoly, but On Demand Distribution – aka OD2 – is arguably Europe’s dominant player thanks to the licensing support it has been given by the major labels. If they’re worried about Apple achieving dominance, why were they never to fearful for their relationship with OD2? With OD2 already serving a number of reseller customers, Sony bringing the European version of its Connect on stream in June, Napster launching in the UK ‘before the end of the summer’ and Virgin Digital on its way, the music industry must have some very high expectations of Apple indeed, if it collectively thinks iTMS can trounce such big-name rivals.”
Full article here.