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October 25, 2007 |

Is Apple about to lose Warner Music Group on iTunes?

By Sean P. Aune





Is Apple about to lose Warner Music Group on iTunes? Another week, another possible pull out of content on Apple’s download store, iTunes.

Apple just can’t as of late it seems.  First, Universal refuses to sign a new long-term contract for their content on iTunes.  Then NBC announces their shows will no longer be offered on the media site.  To top everything off, Universal says they will start their own music site with the help of Sony BMG and possibly Warner Music Group.

Well, the last one is a bit closer to reality now as today’s Washington Post stated that Warner may not be renewing their contract.

With its contract due to expire at the end of the year, an anonymous source told the Post that Warners may go to a similar model as Universal, and do month-to-month work.  This means they could work with Apple for the foreseeable future, but could also end the relationship at any time they choose.

With rumors that WMG is working with Universal, who is already on month-to-month with iTunes, on a new music store, it would not be surprising to see both companies to severe all relationships with Apple sometime in the new year.

The Cupertino-based company just can’t seem to win as of late.  As the mentioned Post article correctly mentions, the music industry was in a horrible slump until the iPod and iTunes came along.  If it was not for Steve Jobs’ marketing of online sales, who knows if this revenue stream would have ever opened to the music companies.  Now that they’re on their feet, and Apple is no longer the only game in the download market, it seems no one thinks they need the iTunes store anymore.

This story is sure to be far from over for a while.

Related:

  • NBC kills its iTunes contract with Apple
  • iTunes breezes by Best Buy to become the number two music retailer in the US
  • Eminem suing Apple
  • Universal looking to try to take on iTunes with help of other labels
  • Amazon trumps Apple, strikes deal with Warner for DRM-free music




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