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July 3, 2007

itunes_store

Universal just has to mess with a good thing

Posted Jul. 3, ’07, 6:44 AM PT by Derik DeLong
Category | iTunes » iTunes Store

Universal Just when it seems like the trend of music swapping might finally be coming to an end. The iTunes Store has been delivering music to the masses by making it easy, fast, and inexpensive. The prices aren’t nearly as low as some would like, but for the most part, consumers are happy. File sharing is on the decline. You’d think the record labels would consider that a success and be happy.

Despite all that, Universal just can’t leave well enough alone. They’ve refused to sign on for another contract year, opting instead for a month by month agreement. This is presumably to negotiate with Apple regarding the iTunes Store. By pulling their material, approximately a third of the music would disappear.

Despite that, the other record companies have signed on for their longer term contracts. EMI is still offering its DRM free content. By acting on its own, Universal could single itself out. This would give yet another reason for consumers to care about label (and artists as well). The move could backfire, causing massive consumer and artist kickback. Only time will tell.


2 Comments

George said:

What else would you expect from Universal? They're also the only movie studio still prolonging the HD format war by only offering their content on HD-DVD (as opposed to every other major studio offering either Blu-Ray or Blu-Ray and HD-DVD). At least their music and movie divisions acting equally foolish...

July 3, 2007 7:56 AM
Paul said:

Who said they were pulling their music out of the iTunes store?

July 3, 2007 10:01 AM

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