Universal will not renew long term contract with Apple iTunes

[desmond]

http://www.engadget.com/2007/07/02/u...o-renew-itune/

[Diabolic_Tom]

Universal (The sole* exclusive supporter of HD DVD) is pulling its music from iTunes...

I hope no one has to ask why this is relevant...

(http://www.theregister.co.uk/2007/07...l_snubs_apple/)

*Major studio

[Maximus]

Quick clarification, this is UMG part of Vivendi-SA, a French company - not NBC Universal the GE subsidiary.

[desmond]

Originally Posted by Maxpower1987

Quick clarification, this is UMG part of Vivendi-SA, a French company - not NBC Universal the GE subsidiary.

of course, it is stated in the article.

[Aaron]

Wow, that's a lot of songs I won't be able to get. Don't make me go back to my naughty ways of pirating music.

[Shadowself]

Universal has stated that they will not *renew* their *LONG TERM* contract with Apple.

Universal very, very much wants to keep a contract going with Apple. Universal is just pushing for a short term contract (one year or so). Universal believes short term contracts will give them more leverage with the online music stores ... not just Apple's online music store.

Universal has no intention of pulling its catalog from Apple. Apple's iTunes Music Store is the third or fourth largest (depending on whose numbers you believe) retailer of music. Universal does not want to lose that revenue (and Universal's profit margin on downloaded music is *HUGE* compared to what it gets from B&M stores).

Anyone who even implies that Universal is pulling its catalog from Apple is spreading FUD.

[desmond]

sony signed a one year contract, universal will continue on at-will basis (no contract). as for fud, i am sure reuters, new york times and everyone else carrying this story is trying to spread it.

[Shadowself]

Originally Posted by desmond

sony signed a one year contract, universal will continue on at-will basis (no contract). as for fud, i am sure reuters, new york times and everyone else carrying this story is trying to spread it.

with the Wall Street Journal. They have a much more balanced report. They specifically state that Universal will go to short term contracts. Both Apple and Universal would be fools (and they are not) to sell anything without a contract in place.

And as for Reuters (and API and others of their ilk) they very often get the story wrong (or at most half right) in an effort to get the story out first.