Universal declines 2-year Apple iTunes Store deal, opts to go monthly; wants iPod, iPhone royalties

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“Universal Music Group, the world’s largest music company, has declined to sign a long-term deal with Apple Inc.’s iTunes music store, leaving open the possibility for exclusive deals with other services, an industry source said on Sunday,; Yinka Adegoke reports for Reuters.

Adegoke reports, “Universal will continue to sell music and videos of artists including 50 Cent, Mariah Carey and Black Eyed Peas via iTunes on a month-to-month basis, rather than be locked in to a two-year agreement Apple had proposed, the source said.”

“In effect, Apple will now have similar terms to those that Universal already has with the majority of its retail partners,” Adegoke reports. “Some music executives have privately expressed frustration that Apple’s dominant position may have hampered growth of the fledgling digital music market by keeping users locked within the Apple system.”

MacDailyNews Take: No iPod is required to buy and play music from iTunes Music Store. iTunes Music Store use is not required to play music on iPod. Therefore: no “lock-in.” “Lock-in” is nothing more than a fantasy for the weak-minded and/or for those who’ve been soundly-whipped in either the device and/or online content markets.

Adegoke continues, “Universal, which produces one in three albums sold in the United States, has been leading the push by music companies to demand that new technology and media partners who want to license music share in the proceeds of the new products as well. Last year Universal signed a deal with Microsoft Corp. to take a small share of sales of its digital media player, the Zune.”

Full article here.
Okay, so it took Microsoft nearly a year to stuff the channel with 1 million Zunes, so if Universal gets $1 per Zune, they made a whopping $1 million? No wonder they want a slice of Apple’s iPods and iPhones. Microsoft’s Zune is a desperate joke. It’s the WNBA of the digital media device world.*

Mediocresoft was so late, with so little, they would have signed anything because without Universal, the Zune would have been even more of a flop (if that’s even possible).

Does Sony pay Universal Pictures a royalty for every TV they sell? No. Does GE pay Universal Music a royalty for every AM/FM radio they sell? No. But, Apple is supposed to pay royalties to Universal on every iPod and iPhone sold regardless of whether any Universal content is ever even played on Apple’s devices? Why, because Apple is insanely successful? Is that why they should pay royalties where no one else does? Nonsense.

Universal is thinking like a dinosaur because they are one. They are also nuts. Universal et al. are crazy dinosaurs who, if they can’t get their act together very soon, face certain extinction.

*Boring mediocrity that real people couldn’t care less about propped up by vastly larger organizations with agendas unrelated to the product itself. Ginned-up “interest” cannot sustain failure for long.

127 Comments

  1. UMG is in negotiations to be sold. I believe this move is to allow any buyer the opportunity to negotiate their own deal with Apple, and has nothing to do with UMG’s desire to limit their association with iTunes.

  2. I’d like to see a list of Universal “talent.” Then I could contact those artists and tell them because your work for Universal I will not be buying any of your music.

  3. “Some music executives have privately expressed frustration that Apple’s dominant position may have hampered growth of the fledgling digital music market by keeping users locked within the Apple system.”

    LOL
    Because before, there were soooo many people downloading stuff from one shop and then finding out they wouldn’t be able to play it on the brand-new device the got on christmas. Oh please, go back to dreaming but do it silently ^^

  4. Although I probably haven’t bought music from Universal in a long time, I’m personally boycotting them. They’re so greety that they don’t see the potential right in front of them. Instead of being part of the innovation, they’re part of the distraction.

    Screw U!

  5. ARE THEY F*CKING KIDDING?

    What the hell gives them the right to money from iphone sales? Apple made that product, it has nothing to do with Univeral or their crappy music.

    I’m amazed at their arrogance and the idiocy of them going head to head with Jobs over this. I hope he smacks them down like the b*tches they are.

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