Universal might not renew iTunes deal
Universal Music has apparently declined to achieve a lengthy-term deal to market its music and videos through iTunes.
While the organization has agreed a brief-term deal, the move leaves the real possibility that Universal may withdraw its content and artists from iTunes later on, warns Reuters.
Universal is just saying yes to some month-by-month deal as opposed to the Apple-preferred two-year deal. An earlier three-year deal expired recently.
The move through the world’s largest record label has set tongues wagging. Many commentators believe that using the relative weakness of other digital music stores the choice by Universal to try and weaken iTunes with the withdrawal of their content would also negatively impact Universal’s artists.
In addition to trying to weaken iTunes’ dominant position in online music retail, Universal can also be trying to pressure Apple into offering the organization flexible prices.
Universal can also be fantasising at the potential of going for a royalty on every ipod device offered, like the deal the organization arrived at with Microsoft within the Zune player.