Menu
Universal alters the playing field with iTunes

Universal alters the playing field with iTunes

Universal Music Group has confirmed reports that it has altered its licensing deal with Apple's iTunes service.

The world's largest major record label last night released a statement on the matter. "Universal Music Group has decided not to renew its long-term agreement for Apple's iTunes service. Universal Music Group will now market its music to iTunes in an 'at will' capacity, as it does with its other retail partners."

It's the end of fraught negotiations between the two firms. The previous three-year deal between them expired last year, and a temporary one-year agreement was reached.

Stakes are high: while Universal is the label behind one-in-three records released worldwide, Apple's iTunes service has become the third-biggest music retailer in the U.S.

iTunes has also become synonymous with online music services, and is estimated to hand US$200 million in profit to Universal each year.

However, it is thought that Universal wants to be able to offer some music by some bands exclusively through other online music services in its attempt to reduce Apple's control of the online business.

This could mean that music from key artists may not be made available through Apple's service.

The new deal is to be agreed on a monthly basis. The fracas between the two firms could reflect Universal's continued demands for flexible pricing, and may even reflect its displeasure at Apple's iTunes Plus service.

Reports that Universal will withdraw all its music from iTunes have since been characterised as incorrect.

Apple has not issued a statement on this matter at this time.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags AppleiTunesUniversal

Featured

Slideshows

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Champagne Reception kicks off Reseller News Innovation Awards 2018

Champagne Reception kicks off Reseller News Innovation Awards 2018

More than 460 channel leaders came together to toast the top performers of the New Zealand industry, during the opening Champagne Reception at the Reseller News Innovation Awards 2018 - in association with Techbuyer.

Champagne Reception kicks off Reseller News Innovation Awards 2018
Chasing innovation: how Kiwi partners can create a new customer agenda

Chasing innovation: how Kiwi partners can create a new customer agenda

This exclusive Reseller News Roundtable - in association with Rhipe and Microsoft - detailed a blueprint for customer success, outlining the new role of the modern-day partner and wider network in New Zealand.

Chasing innovation: how Kiwi partners can create a new customer agenda
Show Comments