Sony BMG caves, signs on Apple’s dotted line for Australian iTunes Music Store

“After launching in a blaze of publicity last year, the Australian arm of Apple’s iTunes store has finally agreed to sell the music of major-label behemoth Sony BMG,” Andrew Murfett reports for The Age. “The move further solidifies the music industry’s embracing of the digital world. The agreement ends a long-running dispute between Sony and Apple that has affected the Australian and Japanese versions of the world’s most popular music download store. It also means that the 1 million-plus Australian iPod owners can now legally download the music of some of the biggest names in pop.”

Murfett reports, “Sony BMG Australia’s general manager of business strategy and human resources, Emmanuel Candi, says the deal was settled at the company’s New York offices late last week. He also confirmed that local artists were incensed that their music was unavailable. ‘It’s fair to say a number of artists were keen to see iTunes being able to stock our release.’ Rob Small, a spokesman for Apple Australia, says his company was ‘delighted to have them on board.'”

Murfett reports, “A sticking point between the two parties was Sony’s concerns over the structure of the site’s pricing. iTunes charges just one price, $1.69, for all individual tracks.”

Full article here.
Note that Sony BMG songs on Apple Australian iTunes Music Store are AUS$1.69 which tells us that Sony BMG caved completely and needs Apple far more than Apple needs them.

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Related MacDailyNews article:
Apple adds Sony-BMG content to Australian iTunes Music Store – January 17, 2006

14 Comments

  1. “After launching in a blaze of publicity last year, the Australian arm of Apple’s iTunes store has finally agreed to sell the music of major-label behemoth Sony BMG,”

    Sounds like someone is putting the cart before the horse.

  2. There’s more to this… Sony also wants/wanted access to the Fairplay DRM and they were using this “bargaining chip” to try and get it. We probably won’t know whether they were successful or not for some time. But if in a few months you see a “walkman” or home stereo equipment that can decode Apple’s Fairplay DRM then, well, you know where it came from…

  3. There also could be a compromise agreement that gradually phases in some sort of tiered pricing. Only time will tell if Sony BMG (and the other labels wanting price increases) really had to cave in…

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