“Last month the music industry and Apple, long uneasy partners, seemed a picture of harmony when they agreed on new terms for pricing on iTunes, Apple’s online music store,” Tim Arango reports for The New York Times. “Behind the scenes, however, the relationship remains as tense and antagonistic as ever.”
“The announcement on Jan. 6 seemed to signal a rapprochement between the music industry and its biggest distributor: record companies gave up their demand for copyright protection (called digital rights management) and Apple allowed flexible pricing, so the labels could charge more for new or popular tracks,” Arango reports. “But according to one music industry executive involved in the negotiations, Apple’s primary goal was securing distribution of music over its iPhone, as mobile phones are expected to become an increasingly important outlet for music.”
“Disagreements over the timing of the changes also resulted in a particularly tense conversation on Christmas Eve between Steven P. Jobs, the chairman and chief executive of Apple, and Rolf Schmidt-Holtz, the chairman of Sony Music,” Arango reports. “A spokesman for Apple declined to comment, as did a representative for Sony Music. But chatter about Mr. Jobs’s combative tone on the call ricocheted around the music industry, and it was regarded as another display of his tough bargaining tactics, made possible by Apple’s position as the dominant seller of music.”
“Mr. Schmidt-Holtz, wanted the pricing to go into effect right after the announcement, while Mr. Jobs wanted a longer time horizon. According to a person briefed on the telephone call, Mr. Schmidt-Holtz and Mr. Jobs had a heated exchange by phone on Christmas Eve. Eventually, Sony gave in and agreed to a longer waiting period,” Arango reports.
Full article here.
The greedy music cartel bastages who collectively had no idea how to run their own business (besides straight into the ground) ought to be thankful Steve Jobs stepped in to save it from themselves.
Who can blame Jobs for seemingly getting impatient over tiresome haggling with a group of blooming idiots?
[Thanks to MacDailyNews Readers “Adam W.” and “Nerd Beautiful” for the heads up.]