“Apple Computer on Monday revealed it had renewed contracts with the four largest record companies to sell songs through its iTunes digital store at 99 cents each. The agreements came after months of bargaining, and were a defeat for music companies that had been pushing for a variable pricing model,” Joshua Chaffin and Kevin Allison report for The Financial Times. “The music industry’s big four – Universal, Warner Music, EMI and Sony BMG – were not immediately available to comment.”
“The issue has occasionally become acrimonious, with Mr Jobs last year publicly labelling the industry ‘greedy,’ Apple and the music companies declined to comment on the current round of negotiations. However, several music executives privately acknowledge that they have little leverage over Mr Jobs,” Chaffin and Kevin Allison report. “iTunes accounts for about 80-percent of the US digital music market at a time when the record companies are desperate to show shareholders they are replacing declining compact disc sales with new internet revenues. ‘The labels need Apple too much right now,”‘ne record executive said.”
Full article here.
MacDailyNews Take: Game. Set. Match.
(No word, yet, on the length of the contract. More details ASAP.)
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