Universal looking to try to take on iTunes with help of other labels
It seems that Universal is still angry with Apple, and to show it, they want to take on iTunes.
According to a story in BusinessWeek, Doug Morris, chief of Universal Music Group, is still stinging from their recent negotiation with Steve Jobs of Apple. When they couldn’t reach an agreement, Universal refused to re-up their multi-year contract with the computer maker.
Now it seems that Morris wants to take iTunes on more directly, and looks close to enlisting Sony BMG, and possibly Warner Music Group, in to his new scheme. The plan calls for a $5-a-month subscription plan that would be absorbed by hardware manufacturers or cell carriers. This would result in consumers buying devices with an essentially “all-you-can-eat” music subscription for what appears to be free. In actuality the consumer has bought a device that they will probably have to sign a contract for.
Total Music, the name for the new service, if successful in bringing all three companies together, would represent approximately 75% of all the music currently released, and could put a hurt on on iTunes. One also has to wonder how this might impact the recently launched Amazon MP3 store. Will the labels continue to support the infant music service, or will they sacrifice it in favor of their new service?
However, with the news of so many artists leaving their labels to go independent, could this all be for naught? With the likes of Madonna and Nine Inch Nails breaking free of their labels, would they, in theory, be able to sign contracts of their own with iTunes?
The landscape of the music scene seems to be in a great amount of turmoil at the moment, but one thing seems fairly certain: That all the major record companies are focusing their sites on taking down iTunes.
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October 12th, 2007
[...] Universal looking to try to take on iTunes with help of other labels » This Summary is from an article posted at TECH.BLORGE.com on Friday, October 12, 2007 This [...]