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“Universal Music Group, the world’s largest music company, has declined to sign a long-term deal with Apple Inc.’s iTunes music store, leaving open the possibility for exclusive deals with other services, an industry source said on Sunday,; Yinka Adegoke reports for Reuters.
Adegoke reports, “Universal will continue to sell music and videos of artists including 50 Cent, Mariah Carey and Black Eyed Peas via iTunes on a month-to-month basis, rather than be locked in to a two-year agreement Apple had proposed, the source said.”
“In effect, Apple will now have similar terms to those that Universal already has with the majority of its retail partners,” Adegoke reports. “Some music executives have privately expressed frustration that Apple’s dominant position may have hampered growth of the fledgling digital music market by keeping users locked within the Apple system.”
MacDailyNews Take: No iPod is required to buy and play music from iTunes Music Store. iTunes Music Store use is not required to play music on iPod. Therefore: no “lock-in.” “Lock-in” is nothing more than a fantasy for the weak-minded and/or for those who’ve been soundly-whipped in either the device and/or online content markets.
Adegoke continues, “Universal, which produces one in three albums sold in the United States, has been leading the push by music companies to demand that new technology and media partners who want to license music share in the proceeds of the new products as well. Last year Universal signed a deal with Microsoft Corp. to take a small share of sales of its digital media player, the Zune.”
Full article here.
Okay, so it took Microsoft nearly a year to stuff the channel with 1 million Zunes, so if Universal gets $1 per Zune, they made a whopping $1 million? No wonder they want a slice of Apple’s iPods and iPhones. Microsoft’s Zune is a desperate joke. It’s the WNBA of the digital media device world.*
Mediocresoft was so late, with so little, they would have signed anything because without Universal, the Zune would have been even more of a flop (if that’s even possible).
Does Sony pay Universal Pictures a royalty for every TV they sell? No. Does GE pay Universal Music a royalty for every AM/FM radio they sell? No. But, Apple is supposed to pay royalties to Universal on every iPod and iPhone sold regardless of whether any Universal content is ever even played on Apple’s devices? Why, because Apple is insanely successful? Is that why they should pay royalties where no one else does? Nonsense.
Universal is thinking like a dinosaur because they are one. They are also nuts. Universal et al. are crazy dinosaurs who, if they can’t get their act together very soon, face certain extinction.
*Boring mediocrity that real people couldn’t care less about propped up by vastly larger organizations with agendas unrelated to the product itself. Ginned-up “interest” cannot sustain failure for long.
Complete idiocy.
UMG is in negotiations to be sold. I believe this move is to allow any buyer the opportunity to negotiate their own deal with Apple, and has nothing to do with UMG’s desire to limit their association with iTunes.
I’d like to see a list of Universal “talent.” Then I could contact those artists and tell them because your work for Universal I will not be buying any of your music.
complete greed
“Some music executives have privately expressed frustration that Apple’s dominant position may have hampered growth of the fledgling digital music market by keeping users locked within the Apple system.”
LOL
Because before, there were soooo many people downloading stuff from one shop and then finding out they wouldn’t be able to play it on the brand-new device the got on christmas. Oh please, go back to dreaming but do it silently ^^
Although I probably haven’t bought music from Universal in a long time, I’m personally boycotting them. They’re so greety that they don’t see the potential right in front of them. Instead of being part of the innovation, they’re part of the distraction.
Screw U!
A short term deal for a company with a short term future.
The truth is that Universal wants to control the whole music industry – which im affraid will never happen!
Take a look at the Univeral “New Releases”.
http://new.umusic.com/Music.aspx?Group=1&Type=1
Is anyone really going to miss this s**t on iTunes?
Welp – Another successful payoff by MS.
ARE THEY F*CKING KIDDING?
What the hell gives them the right to money from iphone sales? Apple made that product, it has nothing to do with Univeral or their crappy music.
I’m amazed at their arrogance and the idiocy of them going head to head with Jobs over this. I hope he smacks them down like the b*tches they are.
Apple should walk from the table. We’ll see how long it takes for UMG to scamper back to Apple ready to wipe Jobs’s ass with their tongue for the chance to get back onto iTunes.
OMFG. Yet not surprising considering the tradition of greed and stupidity.
Universal Artists:
http://new.umusic.com/artists.aspx
You’d be impressed by the list. Some of the greatest names in classical, jazz, pop, rock, rap, country… The catalogue is (unfortunately) amazing. They in fact do represent one in three artists/acts out there; from U2, to Tom Jones, to 50 Cent, to Leonard Bernstein…
This is Universal’s leverage against Apple. It is sad that a bunch of moronic suits have such wealth of raw talent under their belt.
Well, such is music industry. If you are a musician, you’re screwed. If you aren’t with a label, you struggle in anonymity. If you’re signed, you have a chance at fame, but better have a tube of Vaseline with you whenever entering label’s offices… In the end, from every 99 cents that joe sixpack pays for a song on iTunes, creative musician gets two or three (at most). Apple keeps its 15 and the label gets the rest (for doing exactly … – nothing!). This was reality before iTunes (and before CDs) and it is reality today. At least, with CDs and vinyl, record companies had to produce, package and distribute stuff. With iTunes, they sit on their collective arses; meanwhile, musicians travel around the country, from town to town, touring their own arses off…
No easy way to get around the system, though.
Flash. Just heard that goodyear wants to get car royalties and oil royalties for their tires. Amazing example of free enterprise!
The new releases don’t represent Universals true breadth of artists…. they’ve got some big names…
That being said, I have never bought a CD from Universal… I much prefer indie lablels… you get much more honest, real music from true, struggling musicnas who actually have to have talent to be famous, (unlike Universal’s Ashlee Simpson, for instance).
boycott UMG.
F&*K them.
add record label to Apple already and watch these morons die
they promote flash in pan crap
well guess what? that means apple can do the same and jump in with the next hot act
sell millions with exclusive content
this is so clear they are fools to f with apple
bring it on jerks!!!
Hey Universal Why TF should I pay you guys a fee to buy an iPod? That concept truely SUCKs! Bit torrent anyone?
Fuck Universal.
Good luck with Microsoft – youre gonna need it.
If one thing history shows is that Microsoft only sign deals that are good for them.
You guys have signed a deal with the Devil – and you are gonna get your fingers burnt.
I cant wait to see the Universal people realing in distress when they realise how much money they have thrown away by not signing a deal with Apple.
And of course its a two way street, Apple may decide I dont want Universal on iTunes anyway and cancel the monthy deal with them.
@Petey,
While MS isn’t/wasn’t the first company to try (and almost succeed) in taking over an entire segment of the free market place in the free world – it was the first to do it in my lifetime, and with a product type that became intergral to people’s personal and business lives on a daily basis.
What a horrible, aweful precedent was set by MS with the desktop OS. Now anybody and everybody thinks they should be able to rule the world without providing anything real, new, or of any appreciable quality. Everytime I think about it all I can say is damn – damn, damn, damn.
Okay, I’m not thinking about it anymore ——— damn!
How do we… who do we… talk to, do something… find someway to get a web presence up and running so that we can BOYCOTT these mofo’s?
I’d like it so that anytime anyone Google’s “Apple Universal” or something similar, to see a page outlining the greediness of these crooks, then join on in with the sane world and boycott these pricks.
Someone at Universal needs a punch in the face
Universals choice:
Get paid £1million a year through zune deal with Microsoft.
Choice they could have had – make $9 million a year (minimum) by signing a 2 year deal with Apple.
Dear Universal,
You greedy bastards. I would have no interest whatsoever in your music catalog if it were not for the iPod. The fact that you derive any income from me at all is due to Apple’s iPod. Your “shake down” of Apple and others is disgraceful. Set up your own digital distribution network if you want greater profit on your product.
Let´s see what happens. I would not worry about it. Disney buys Universal or something.
One of my favorite bands, Blindside, was dropped by their label and decided to release their music, which is awesome, through their own website, not using a label. They called this “the future of music distribution”. This is what Universal is facing and it scares them to death. They don’t know what direction to take right now… I like it.
Hey, check out Blindside, too, at http://www.myspace.com/blindside
They need your help. lol
Hey! Any lawyers out there???
What’s the difference between demanding royalties (on a device that MAY OR MAY NOT EVER contain Universal’s product), and EXTORTION?
Seriously?
Who do we call, States Attorney General’s or something?
I want to know WHAT RIGHT Universal has to MY MONEY, especially if I don’t have ANY of Universal’s artists on MY iPod.
Someone needs to sic the dogs o’ war on these fat PIGS.
Universal has a brilliant new negotiating tactic.
“Give me what I want or I’ll shoot myself in the foot!”
Go ahead punk make my day
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Its about time that Apple luanches the iTunes record label, sign the big name artists and kill off the record industry. Its a business model that has long since past its prime and simply does not work in the modern age.
You can see WHY they are trying to seel UMG, its because they don’t know how to manage music sales in the new online world. Universal is not going to screw themselves out of cash when they sell UMG by axing a deal of some type with Apple. You don’t cut off the 3rd largest music retailer and then go out and try and sell your music division off for top dollar
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MDN:No iPod is required to buy and play music from iTunes Music Store. iTunes Music Store use is not required to play music on iPod. Therefore: no “lock-in.”
MDN keeps fighting this, but it’s still not true. With the exception of the new DRM-free offerings (yay!), there exists a very definite “lock-in” between iTMS and the iPod. Fairplay-protected tracks will not play on any other portable but iPod, or through any other player but iTunes. iPod and iTunes cannot play protected tracks from any other online store.
So if you patronize iTMS, you have ONE option for jukebox and portable, and if you use iPod, you have ONE option for online track purchases. That’s a lock-in. Just because they’re the most successful and the best, doesn’t make it something it’s not. That’s a Microsoftian technique (hardly anyone uses another browser, so we might as well force IE on them…) and it’s baloney.
“Its about time that Apple luanches the iTunes record label, sign the big name artists and kill off the record industry. Its a business model that has long since past its prime and simply does not work in the modern age.”
Apple – “Hey, sign a music contract with us, and you can have the share your old music label got that they did not share with you, oh and we will give everyone in your band a free iPhone
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MW = Large
As in “give the actual people making the music a LARGE share of the money made off of them”.
over the years ive put a couple hundred bucks into the iTms, but not because i have to by any means. if universal yanks there stuff off itunes, thats fine by me. ill just ‘aquire’ it by other means 0:-)
ill be really peeved if jobs gives in, which i doubt he will.
eff the system!
Universal is basically hoping this entices Redmond to bite on the game for exclusivity with Zune – or hopes Apple somehow feels compelled to make a counter offer.
Apple may counter and it goes something like this: Go pound sand.
If Apple wanted to be really aggressive, they would buy Universal, and make it exclusive iTunes only and no-DRM on the music like EMI, and pull the content from any other site, and watch:
– CD sales climb
– iTunes sales climb.
Eveyone else die on a vine.
http://lawgeek.typepad.com/lawgeek/2007/04/dick_dale_expla.html
apple will never agree to it. universal needs itunes as much if not more than itunes needs universal. itunes is the 3rd largest music retailer. universal cant just dump them. nice try on their part… why not give it a shot? ha
“UMG is in negotiations to be sold. I believe this move is to allow any buyer the opportunity to negotiate their own deal with Apple,”
Bingo.
Then I guess Universal has to die, if that’s what they want.
@PC Apologist: “MDN keeps fighting this, but it’s still not true. With the exception of the new DRM-free offerings (yay!), there exists a very definite “lock-in” between iTMS and the iPod.”
Once you make an exception, there’s not much more to be said. Think about it.
PC-
Facts are difficult things. Let’s review.
No iPod is required to buy and play music from iTunes Music Store.
This is completely true. You can buy and play music on a Mac, or a PC. I know…I have both…I’ve done it and listen to iTunes tracks more often on my computer than I do on an iPod.
iTunes Music Store use is not required to play music on iPod. Therefore: no “lock-in.
Also completely true.
I bought the Paul Simon CD, and imported the tracks to the computer, later putting them on an ipod. No music from that album came from iTunes Music store.
It’s true that if I chose to use a different player, those tracks I purchased from iTunes would not play on it.
But at that point it’s a matter of personal preference. I happen to think the iTunes software is just far better than other players. It only matters if you MUST have some particular feature of another player that isn’t in iTunes. I haven’t found one that matters.
So…yes…it’s a “lock-in” but only by controlling the system can Apple make it as trouble free as possible.
Would you think that if they opened it up they would take support calls on why an iTunes track won’t play in ANOTHER company’s software or player?
That would be costly, and largely pointless.
If it works…why fix it? Greed?
“UMG is in negotiations to be sold. I believe this move is to allow any buyer the opportunity to negotiate their own deal with Apple,”
So does this mean the media, as usual, is making a mountain out of a mole hill?
F*CK Universal!! All they put out is crap anyway… Apple please hold firm and don’t cave to these scumbags.
The only thing that ties music purchased from the iTunes Store with the iPod and iTune software is the DRM (and that can be eliminated by burning content to a CD). Who is demanding DRM? And if UMG thinks that tying itself to MS WMA is any better than Fairplay, they are really fooling themselves.
If the iTunes files were not encoded with DRM, then the music files could be played on any digital device that could handle AAC. For that matter, the unprotected (non-DRM’ed) iTunes track can be converted to MP3 or some other format).
Universal is freaking out because all the big labels are corrupt monopolies and they hate the internet because it frees people from their control.
They hate iTunes, because people can actually choose what they want to listen to. The big labels long for the days when they could control what people got to listen to by giving radio DJ’s drugs to play their tunes, and making sure their albums were displayed prominently in record stores. (Oh, and make sure any artist that didn’t sign away all their rights to them wouldn’t be heard or seen.)
What’s worse, iTune’s keeps a clear record of every song that is sold, and thus a record of the fact that the singer and songwriter have to be paid for that. So Universal has to pay artists fairly (or at least kind of fairly) for their work.
But what about all the crappy songs Universal wants to sell? You know, the one’s no one wants, but that some record company buddy or exec wrote. What about the shitting music they paid too much to produce with their champagne and coke parties? What if nobody buys that stuff? It will make them look bad.
That’s why Universal and the other record companies have pushed for subscriptions. They want people to pay for their whole catalog in a non-transparent way. That way Universal gets to decide where the money goes. That way Universal can cover up spending 10 million to produce an album nobody cared about.
Likewise, this is why Universal is pushing for a fee from each iPod. So they get money for all their crap, not just the good stuff. And the executives get to decide where the money goes behind the scenes. They hate the idea of the listener, deciding they like an artist, and then having to pay that artist based on the number of downloads.
Universal didn’t build up a huge catalogue of great artists because they were good at nurturing talent. They did it by buying up other labels and forming a monopoly. They spent money to maintain control over the market. Now they’re fucked, because the market they controlled (radios and record stores) is fading. In part, because they flooded it with too much crap.
I doubt Apple is going to fall for Universal’s attempts to corrupt the iTunes store and the new music market.
If Universal’s music goes off the iTunes store, that will just make more room for Apple to promote independent artists.
And that’s where the real future of music is going anyway.
@ PC Apologist:
I buy all my music from the eMusic store.
GREAT collection, and plays just fine on my iPod.
No DRM, I admit that.
I wonder why MDN has chosen not to report the DECLINE of Mac software/hardware.
http://marketshare.hitslink.com/report.aspx?qprid=3
http://marketshare.hitslink.com/report.aspx?qprid=5
Internet Explorer use went up! GO MICROSOFT!
If it’s not on iTMS, I’m not buying. If UMG leaves iTMS, their artists should consider jumping ship. Perhaps the Apple label?
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the tighter they squeeze the more things will slip through their fingers … customers and artists will revolt against UMG … everyone is getting sick of the music industry bosses …
Continued pressure from music corporations may push Apple/Pixar/Disney into a situation where them will begin producing in the music arena. Disney has all the studio whiz-bang electronics to produce/distribute/promote musicians with both recording and video. They must realize they are not the only people that can produce. I would bet that if Jobs simply started a rumor that they will be signing big name groups/individuals to the ratf*cktootie label, Universal, et al would pass bricks through their little record holes. Hmmmmmm what an idea — any rumor mongers out there??????
Idiots still keep posting FUD, but it’s still true — You don’t need to buy anything from ITMS to use iTunes, and you don’t need to use ITMS to use an iPod.
Universal has a good back catalog, but look at their current offerings — these are all slated for U.S. distribution and a majority of them are in Spanish. Yeah, the multinational corporations are screwing over America yet again.
Just die, Universal. We don’t need you or want you.
Well…. Good-bye Universal.
Universal who?
Who’s going to be pissed? The bands.
UMG and NBC Universal are two completely different companies
As I said:
Yo Universal Muzak… !!!
Listen up… I am an iPod owner – since day one. Every generation including the U2 versons. I have 14,164 songs (not including my music vids, movies and podcasts – in my iTunes folder, of the which I have purchased 4,582 songs from the iTMS. Mostly ful complilations because I like it like that.
if this story is true – and for some reason, I find it plausable that you woudl actually slit your greedy-assed wrists – I will from the time of confirmation of the reality of this Universal BS – stop purchasing your label and any sub-label that you spin off or currently publish music. I know I am only one buyer. So, I am sure you will say “F*CK him, who gives a shite!” What’s true is that is what you have said for years to the artists, retailers and customers. All you care about it the little car that takes you from your house on Mullholland Drive to your offices in the Shitty of LA and back and the chicky who gives you head there and back. You D*ck wipes.
You are greedy phuques and always have been. You will never CHANGE!!!
MDN – change – as in music labels need to change and follow SONY’s example and get on the train.
Since I am now provided with proof of this idiocy, then I for one will make sure that any music or movies or anything that Universal Entertainment does is no longer on my schedue.
Yo Universal – “Chomp my choda!”…
You sorry assed greedy sucks…
At least Dracula is honest about his bloodsucking!
As for the “lock-in” crap that is being still bandied about by those who really do not know: I can take ANY song of my 14,000 + llibrary and burn it to a cd and “share it” – I can load those songs onto any player – like my Moto K1 – can you do this with the pile of shite Zune? (New colour for Zune – darker brown).
As for other music management software – show me something better. And a player that is better (not with more gadgets or gizmos that I don’t use anyway) – in the sence of elegance and ease of use – and I will buy it and move all of my music to it but then what do I do with the over 100 movies and 500 music videos and 200 podcasts and 50 audibooks? (Not all purchased from iTunes, either).
Hmmmm I guess I am “locked-in”! Why? Because I found something that ‘just works”…
Time magazine quoute “If you’re not ready to think different, then think ahead.”
Those might be good words for Universal! I wonder how the stockholders feel about this bull-shite? Maybe brown is a Universal way of looking at the world when you have your head so firmly planted up your okoli!
@ Petey,
what’s that 9 million dollar figure ?
Universal gets over 800 000 000 dollars from ITMS.
and, if u meant 1 dollar per iPod over two years u are very far away from the truth, apple sells over 40 000 000 iPods per year.
mark:Once you make an exception, there’s not much more to be said. Think about it.
Right. So there’s no lock-in for a small number of songs (this pleases me), and lock-in for the vast majority.
pr:You can buy and play music on a Mac, or a PC.
Right. Apple’s portable or Apple’s PC/Mac application. You have the choice between Apple and Apple.
I bought the Paul Simon CD, and imported the tracks to the computer
Right. Only if you buy a physical CD. Wasting money (i only want one song) and physical resources (plastic, paper, oh the environment!), which is why the online per-song purchase model is supposed to be superior.
But at that point it’s a matter of personal preference.
Right. Apple’s products do NOT allow you to use them AND exercise personal preference at the same time. You can either use all their products or none.
Would you think that if they opened it up they would take support calls on why an iTunes track won’t play in ANOTHER company’s software or player?
I’d expect them to verify that there’s nothing wrong with the standard AAC encoding of the file, yes. Beyond that, they would obviously not be responsible for supporting the 3rd-party player.
As MDN is fond of saying, it’s not like these are applications that are written for a particular computer and have to be re-written specially. They’re standard music file formats which anyone is free to license and use. The only thing Apple is doing is adding protection that prevents any other company’s products from playing them, and building products that won’t play any other company’s tracks.
I’ve never said there’s a better product out there. I strongly believe that there isn’t. But they’re doing what they’re doing, and MDN insists on pretending they’re not.
If they don’t want their users “locked within the iPod system” wouldn’t it make more sense to join the join the ” iTunes Plus” program, thereby remove the usage restrictions (and making more money per song)???
Also, artists won’t want contracts with a company which doesn’t have their music on iTunes. Universal’s talent pool will dry up.
If they truly don’t want consumers to be “locked in,” they should agree to drop DRM.
@ PC Apologist: I don’t think there’s any lock-in. But if you insist on calling the iPod-iTS relationship lock-in, then you also need to assert that WMA stores lock you into using a Windows computer (No Mac).
RE: we need balanced news”
“I wonder why MDN has chosen not to report the DECLINE of Mac software/hardware.”
“http://marketshare.hitslink.com/report.aspx?qprid=3”
“http://marketshare.hitslink.com/report.aspx?qprid=5”
“Internet Explorer use went up! GO MICROSOFT!”
BITE ME, YOU DESPICABLE STEVE BALLMER APOLOGIST ASTROTURFER. HAVE FUN WITH YOUR FRICKIN’ ZUNE!
mark:you also need to assert that WMA stores lock you into using a Windows computer (No Mac).
Aye. Though it’s not the stores, it’s Microsoft that locks Macs out of playing WMA files w/ DRM by not supporting the locked tracks on their Mac player.
But just because someone else is doing something wrong does not justify the same behavior by Apple. MS is known for their dirty tricks and anti-customer position. Apple is generally known for their PRO-customer attitudes. The iTunes-iPod situation is a rare (but major) departure.
I’m thinking “Apple Studios” as the next empire to build, and to thus dominate the recording industry completely. I will own everything but the artist’s vocal cords. I will record their music and sell it directly to the consumer, and give the artist’s the biggest share of the profit they have ever received.
Thus shall die the dinosaurs now known as recording companies.
Wikipedia: Buena Vista Music Group
Hey PC apologist…. I just bought a HD DVD and it won’t play on my Blu Ray player… so your point is WHAT exactly?
Universal is messed up all around, including Marc Shmuger, the schmuck who runs the film studio.
well personally I think Universal is crazy… but
I would like to point out that if UMG pulls out of iTunes, it looses 15% of it’s income. but by contrast, if UMG pulls out of iTunes, Apple looses 33% of it’s income…
Can’t say which is more $$’s, and it almost doesn’t matter. As a business man, 15% of my business overnight is much easier to swallow than loosing 33%.
But I still think all record labels are crazy, and I can’t wait for them to be gone…
@ PC Apologist
My girlfriend’s younger brother and sister purchase songs from the ITMS. Neither of them has an iPod. Both do however, burn CD’s and listen to their music in every CD player they have ever encountered… My car, their sister’s car, their home, their Mac Mini, their Dell Laptop, my entertainment center, Their CD Walkmans.
How are they locked in?
Apple should buy Universal and fire the Fu*&#xin;g a$$holes. I own some AAPL and would be happy to finance it.
Universal just became irrelevant. They will also never, NEVER get a royalty out of Apple for any version of iPod or iPhone EVER.
So let’s say Universal pulls the plug, and leaves Apple hanging. It may be a classic case of “be careful for what you wish, for you might just get it.”
If the arrogance of Universal Music Group is such that they dream for the good old days of MusicMatch and PressPlay, when they made consumers mere serfs under their utter control, may I remind them of the insane losses they took from file sharing? It was Apple that pulled their collective chestnuts from the fire, and this is how Universal proposes to reward them? By demanding a cut from every iPod sold?
My thoughts in response would be unprintable.
It’s little wonder why, despite the easy profits they get via the iTunes Music Store, Universal’s music business continues to erode. Having Microsoft whispering false promises in their ear helps nobody. It’s amazing though how those with cloven hooves can be so seductive, despite the fact that the Zune is a complete bust. The secretary-mounting, coke-snorting, middle-aged, toupeed comb-overs who run Universal would rather take a measily million from Zune profit sharing than to rake in real profits by a partnership with Apple. Brilliant. Frickin’ brilliant.
You can survive and thrive by working together, or you can fail alone. Universal has a choice. I hope for everyone’s sake that they make the right one.
Someday, I hope that artists will use the Internet to sell their music directly and bypass companies like Universal. So long as CDs outsell digital media, that’s still a pipe dream. But I would not be surprised if the day comes when companies like Universal are rendered obsolete by a combination of their greed, arrogance to artists and consumers, and an outmoded business model. If that day comes, I won’t shed any tears.
I suspect Universal will cave in.
If not, Apple could always start its own record label, and offer contracts to the best artists from Universal.
An Apple record label could, in theory, offer artists a generous cut of their own music sales, bigger then any other major label, while still being very profitable.
Apple is the #3 music seller in the US. This is NOT going to go down, it will only go up. It will either go up with UMG or without UMG. The only one who loses if UMG pulls out is UMG.
MW=any, as in, does any one at UMG have a brain?
we need balanced news,
Ummm, ‘tard, maybe it’s because this thread is about Universal Music Group?
Think about it…
< sarcasm > Oh yeah, I’m just clamboring for Universal’s new releases! < /sarcasm >
The only thing Universal has going for them is their back catalog, and stuff on the Verve label, IMO. Okay, so I like jazz better than thump-n-grind rap crap.
If UMG had the balls they’re trying to act like they have, the wouldn’t have even went month-to-month — they woulda said, “Royalties, or no tunes starting now.” They already know how this is gonna end.
from Daring Fireball in December 2006…
http://daringfireball.net/2006/12/apple_universal_conjectural_transcript
To: We Need Balanced News
Obviously, you didn’t bother to actually read the charts you linked us to. You have to add the MacOS and MacIntel columns together, moron! If you do, you see that Mac share went from 4.3% to 6.0% during the reporting period — a percentage gain consistent with other reporting sources.
Jeezus… the world is filled with PC fanboy idots.
It’s really up to Universal. I don’t believe for a minute the comment about the “lock-in”. I mean Universal can’t be that stupid, can they? They can sign an agreement tomorrow similar to the one from EMG, and the lock-in will be gone! They are the ones that made Apple use DRM to “lock-in” users, but now they complain about hardware sales!? Unreal!
Interesting point Gregg.
Apple probably has no worries since being the third largest retailer they have some leverage also. I doubt the Universal will want to miss out on potentially 600M song sales per year, which equates to around $300M revenue from iTunes at current download rates.
I doubt that Apple would agree to a cut in music player sales unless it was something akin to in Canada that compensates musicians for sales of recording media.
Apple are in the ascendency and it is only natural for those who have controlled the business in the past to try and manipulate the industry for their own benefit. Good luck Universal, I doubt that you will succeed.
I wonder why MDN has chosen not to report the DECLINE of Mac software/hardware.
http://marketshare.hitslink.com/report.aspx?qprid=3
http://marketshare.hitslink.com/report.aspx?qprid=5
Internet Explorer use went up! GO MICROSOFT!
Is reading comprehension and analysis a valued skill anymore?
In the former report, it would be obvious to a blind man in a dark room that IE’s penetration of the market is down to 78.84% from 83.56% a year ago: that’s a drop of 5.65%.
In the latter report, total Windows OS usage on the net was 90.39%. A year later, despite the release of the incredible (take that how you want) Vista, Windows penetration is 90.46%. That’s market share growth of less than one-tenth of one percentage point.
In comparison, Apple’s penetration has gone from 4.29% to 6%: that’s a 39.86% rise in traffic which is broadly analogous to Apple’s year-on-year market share growth in the computer market as a whole. Actually, it’s slightly more which can only be down to one reason which is that many Apple systems are experiencing an extended lifetime beyond the purchase of a new system.
In comparison, nearly every Windows system that gets added to the Net is simply a replacement for some other Windows system that has exceeded its ‘best-before’ date (arguably the date before it has a Windows OEM sticker put on it, but let’s not quibble).
It amazes me that cprest1@hotmail.com is incapable of interpreting these simple facts, but maybe years of using Microsoft products has caused some sort of atrophy in his/her critical faculties.
Drop em. Call Bono.
Ok, let’s see if I can do this quickly –
A Brief History of the Music Industry
(and how they’ve shot themselves in foot on numerous occasions)
The “Music Industry” – as a corporate type business – has existed for only about 100-150 years.
In 1800s the main way to ‘sell’ music was via sheet-music since many people had a piano, and could play it, and they wanted the latest/greatest hits to enjoy at home. The most popular, and biggest selling, song in USA for about 50 years was Swanee River, and Foster got nada on royalties for it aside for the $100 or so he made when he originally sold it to a publisher.
By late 1800s the ‘player piano’ was the new tech of its day, and Billboard – yes, them, they’ve been around a while – measured sales of ‘rolls’ and had a Top 10 list same as today.
In early 1900s, into the 1920s, other new technologies were starting – recordings and radio – and the ‘sheet music/piano roll’ industries missed that boat and probably never thought it would float in first place. Does that sound familiar?
Throughout the rise of radio into the 1930s most all music was performed live-on-the-air. Radio wasn’t playing records, that was left to folks at home on their 78s.
Once WWII started, and all the bands/musicians had joined the Military, the Radio stations then had to start playing records to fill that gap.
That is when the well documented ASCAP/BMI war broke out. With ASCAP – founded years earlier by Irving Berlin wanting to ensure he wouldn’t suffer same fate as Foster with royalties – on the side of the Record Industry attempted to then collect royalites from the Radio Stations each time they played an ASCAP song – believe the amount they wanted was $0.10. But the Radio Stations only wanted to pay $0.05, and the two groups could not reach a compromise, so ASCAP music was pulled from Radio broadcast and BMI was formed (Broadcast Music Industry) with new groups who were not already signed with ASCAP. Most of the Artist with ASCAP were the Big Bands and Crooner in the Northern Metropolitan Areas(i.e.) so that only left the Race Records (later to become Soul/R&B/Rap/Hip-Hop) and Hillbilly (C&W) musicians available to sign with BMI and get played on Radio.
Well, to the surprise of many in those Northern Metro areas (read – money/influence/power/numbers), who’d never heard much music on the radio aside from Glenn Miller or Bing Crosby were happy with the ‘new’ music many were hearing for the first time.
This ‘cross pollination’ of American Music now available to new markets hasten the rise, and invention, of Rock and Roll by the late 1940s into the 1950s. And the ‘status quo Music Industry’ missed that boat too. Best example of that is how Sam Phillips and Col. Parker took Elvis (although, yes, RCA was involved) and helped re-invent American Culture. Adding to this dynamic was the rise of the ‘Baby Boom’ along with generational battle between 33s and 45s.
The next major milepost was the British Invasion as ‘music/entertainment’ became a Global Commodity.
Then by the 1980s, the wheel was re-invented, again, with the rise of MTV and the exposure they gave ‘new’ music that wasn’t being played on the Radio at that time.
Now we’re up to the Digital Age with Napster, iTunes, etc … and imagine most of you can do the math from here.
I’ve given 4 or 5 examples of how the ‘entertainment/music/pop-culture’ industry has had to adjust over the past 100 years or so, and usually not very well. What we’re seeing now is a repeat of the same ol’ story.
If History is any indication – they’ll probably manage to shoot themselves in the foot, again.
Appears Universal already has their gun loaded.
Thank You
BC Kelly
Tallahassee Fla
I buy all my music on CDs. Why should I pay a Universal iPod tax?
Complete douchebags. Apple, tell ’em to go to hell.
It makes no difference whether Universal renews 24 times or 1 time in a two-year period. It is not going to give up distribution through the third-largest music retailer in the U.S.
I don’t see how this is confusing. It must be painful to be this obtuse.
Yes, they could burn it to CD, eating $ for the medium, polluting for the production of the plastic, taking up MASSIVE amounts of physical space compared to a digital music player, and eventually having it scratch and become unusable. And even if they DO want to burn it to a medium that fits 12 songs on a size that doesn’t EVEN fit in your pocket, they have to use iTunes to do it.
They could also bring it to a friend’s house, play it on his iTunes, and record it onto mini-cassette from the speakers.
But if they wanna play it on either of the two things that people actually play music on, either of the platforms which it’s INTENDED to play on (computer or portable music player), they have to use Apple’s.
Back on topic, I don’t see how UMG can now expect Apple to promote UMG artists on iTS’ front page; after all, why promote someone when their record company might pull their music in 30 days.
Far better to concentrate resources on the labels who wish to be co-operative partners in the iTS project such as EMI or independent labels who won’t spit in your face when you’re increasing their distribution at practically no cost to them.
In other words, fsck ’em: let them deal with supermarkets like Wal-Mart who’ll expect massive discounts and retros on physical product that actually needs to be manufactured and distributed.
And when U2 and others decline to renew their contracts because they think it would be better to work with companies that understand the economics of the digital world, maybe the CEO of UMG would like to explain to his shareholders why he’s lost the confidence of the asset that actually brings in the money.
uh huh —
You’ve got it exactly. The point is that if I want to, I can license HD-DVD or Blu-Ray and build a product that plays either or both of those discs and sell it to you.
But I can’t build a product that plays Apple’s songs. Because they’ve locked me out, and someone who’s bought songs from Apple can’t play it on the product of his choice, because Apple’s locked them IN.
“Some music executives have privately expressed frustration that Apple’s dominant position may have hampered growth of the fledgling digital music market by keeping users locked within the Apple system.
Those concerns were further highlighted with the launch of Apple’s iPhone last weekend, which they believe may give Apple further control in the mobile phone-based digital music market.”
JFC. Sure music executives are saying this. However the author then writes on as if this were true. Nevermind that these are the music execs that fumbled, stumbled, and willfully held back the digital music market until Apple provided the roadmap for them. Not only that, but Apple keeps these idiots from killing the market by preventing them from “creative pricing”, which is a euphemism for “$3/track”.
But, no, Apple is to blame and so is the iPod and iPhone. Fuck, by sellling music via iTunes, Apple is hurting sales!!! See how that works?
OK, then if Universal won’t sign on for the full term as the other suppliers then they shouldn’t get the same cut of the profits as they do. Apple should reduce Universal’s cut a few percentage points! Standard business practice, no contract, or shorter contract, less preferential pricing.
PC-
OK…here ya go…
I create a disk image…I ‘burn” all my music as AIFF files…I can take my oh so lovely and environmentally friendly flash drive anywhere I want, play the music on anything and I’ve escaped the lock in. I can re-use the flash drive and either transfer the data or use it as my main storage medium.
No lock in, no pollution, no problem
Here’s the tool
http://www.macupdate.com/info.php/id/10910
Damn, where WILL I get my Fitty Cent, Black Eyed Peas and Mariah Carey tracks now? 😀
Lunatics. On the off chance they have anything I want (and if those three are their stars, well…) there are other ways to get it that involve their getting NO payment as opposed to what they derive from iTMS.
Hurray!!!! Show them the door Apple.
Don’t let them bully you.
Universal may represent 1 in 3 big talents out there but not to worry Apple. This 1/3 that Universal packs can most-likely be found in 3 other locations. 1) pirated possible, 2) other legit downloadable sites, or 3) from record stores on cd.
All which will STILL play on iPOD. Perhaps not iPhone… but definately the iPOD.
SO IT really doesn’t stop the public to play what Universal has.
Now if I knew how to do the numbers, I might see the importance in all this. I’m no bean counter but I can say this, “I didn’t buy an iPOD to shop for all the Universal labels; if I can’t find it – I’ll buy it on some other site – if it wouldn’t play – I’ll buy the cd and iTune the song.”
See there still is choice for the consumer.
Hey, why is it that Futureshop and BestBuy stores online MUSIC selection doesn’t work on iPOD. There should be an up roar of the reverse kind over that.
just an option
Hurray!!!! Show them the door Apple.
Don’t let them bully you.
Universal may represent 1 in 3 big talents out there but not to worry Apple. This 1/3 that Universal packs can most-likely be found in 3 other locations. 1) pirated possible, 2) other legit downloadable sites, or 3) from record stores on cd.
All which will STILL play on iPOD. Perhaps not iPhone… but definately the iPOD.
SO IT really doesn’t stop the public to play what Universal has.
Now if I knew how to do the numbers, I might see the importance in all this. I’m no bean counter but I can say this, “I didn’t buy an iPOD to shop for all the Universal labels; if I can’t find it – I’ll buy it on some other site – if it wouldn’t play – I’ll buy the cd and iTune the song.”
See there still is choice for the consumer.
Hey, why is it that Futureshop and BestBuy stores online MUSIC selection doesn’t work on iPOD. There should be an up roar of the reverse kind over that.
Apple, drop them from the tree!!!!!
Hurray!!!! Show them the door Apple.
Don’t let them bully you.
Universal may represent 1 in 3 big talents out there but not to worry Apple. This 1/3 that Universal packs can most-likely be found in 3 other locations. 1) pirated possible, 2) other legit downloadable sites, or 3) from record stores on cd.
All which will STILL play on iPOD. Perhaps not iPhone… but definately the iPOD.
SO IT really doesn’t stop the public to play what Universal has.
Now if I knew how to do the numbers, I might see the importance in all this. I’m no bean counter but I can say this, “I didn’t buy an iPOD to shop for all the Universal labels; if I can’t find it – I’ll buy it on some other site – if it wouldn’t play – I’ll buy the cd and iTune the song.”
See there still is choice for the consumer.
Hey, why is it that Futureshop and BestBuy stores online MUSIC selection doesn’t work on iPOD. There should be an up roar of the reverse kind over that.
APPLE, let them drop from the TREE!!!!
urray!!!! Show them the door Apple.
Don’t let them bully you.
Universal may represent 1 in 3 big talents out there but not to worry Apple. This 1/3 that Universal packs can most-likely be found in 3 other locations. 1) pirated possible, 2) other legit downloadable sites, or 3) from record stores on cd.
All which will STILL play on iPOD. Perhaps not iPhone… but definately the iPOD.
SO IT really doesn’t stop the public to play what Universal has.
Now if I knew how to do the numbers, I might see the importance in all this. I’m no bean counter but I can say this, “I didn’t buy an iPOD to shop for all the Universal labels; if I can’t find it – I’ll buy it on some other site – if it wouldn’t play – I’ll buy the cd and iTune the song.”
See there still is choice for the consumer.
Hey, why is it that Futureshop and BestBuy stores online MUSIC selection doesn’t work on iPOD. There should be an up roar of the reverse kind over that.
Apple, let them drop from the tree!!!!
Oh no… Universal rendered my iPOD useless,
now I am forced to use it to cheat in exams.
What a joke. Bye bye Universal.
Apple should simply offer to allow Universal to sell iPhones at the retail outlets.
Then it’s equal – Apples sells their music, they sell Apple’s iPhones.
What could be fairer?
Let’s Boycott Universal. List the artists so we don’t buy them. Viva La Resistance!!!
MDN Magic Word (for real): arms as in Let’s take up arms against Universal
Why do I have the feeling that PC Apologist is from Norway? The Norwegians didn’t understand any of our common sense arguments either.
The truth is that Steve Jobs and Apple have freed the consumers from the monopolistic practices of the music industry, and are forcing the music industry into a new role they don’t like.
Just wait until the iPhone forces the consumer’s best interests and desires onto the cellphone manufacturers and carriers. As Steve says…”the carriers are nothing but portals”.
And that’s why people are loyal to Apple.
It’s fairly simple, if Universal want to rip the piss and withhold their music cat from iTunes, then i will respond in the manner which they deserve.
I will not buy their products, if like it that much i will copy it.
If they as a company cannot act in a reasonable manner as a service provider, they will be treated with the contempt they deserve.
lets just start a grassroot movement today on MDN and say “PHOCK U UNIVERSAL” by boycotting all their music products.
i don’t listen to fiddy cent and mariah carey anyway…
who’s with me?
Universal = Greedy F^~kers.
My vote: boycott them!!!
Yes, they could burn it to CD, eating $ for the medium,
I must have forgot that iPod’s are free and there is no cost for using that medium for playing music.
if they DO want to burn it to a medium that fits 12 songs on a size that doesn’t EVEN fit in your pocket, they have to use iTunes to do it.
It fits perfectly well in their carrying cases along with their DS Lite and games, cell phone and so on. The music travels with them as easily as anything else.
But if they wanna play it on either of the two things that people actually play music on, either of the platforms which it’s INTENDED to play on (computer or portable music player), they have to use Apple’s.
It is your opinion only that the music is intended to be played on a computer or iPod. They prefer to use CDs. It is extremely portable for them and there is no lock down to loan to their friend’s to listen to. It is cheap, it is reliable, and it is easy. So for them, it is intended to be used for creating CDs. Fortunately, they can burn CDs to give to their Grandmother who has no computer or iPod.
Your way isn’t the right way for everyone. If you can pull your head away from watching Shawshank Redemption again, maybe you wouldn’t be so obtuse.
As some have already suggested, established artists will be the first to break free of their contracts and go it alone, and there are several avenues they can pursue to post their wares on iTunes.
The record companies are dying, and they know it. They’ve been screwing artists forever, and there is no good will left between most artists and their labels. The major’s are getting increasingly desperate for cash, taking away almost all sources of revenue from their artists (merchandising, etc.) Their days are numbered.
iTunes (and Apple’s inevitable non-DRM competitors) are the future of music, and probably other forms of digital entertainment as well. I expect prices will go down as competing services to iTunes eventually gain a foothold. This won’t hurt Apple as they don’t rely on iTunes as a source of income. In fact the competition will only make Apple stronger in the long run.
What gives Apple the right to a cut of AT&T’s phone revenues for every iPhone sold.
Does Apple own the network or does AT&T?
Just asking.
> What gives Apple the right to a cut of AT&T’s phone revenues for every iPhone sold.
Because that’s the deal they made; AT&T (Cingular) obviously saw value in making such a deal, unlike Verizon. Universal is in no position to “demand” a cut of iPod and iPhone sales. As you can see, Apple said NO WAY and Universal caved in, because Apple is the third largest music retailer in the U.S.
And from a common sense perspective… Apple gets a cut from AT&T because Apple supplies every device for which the cut is received. Universal wants a cut because the iPod or iPhone user may have “stolen” music from Universal’s catalog. Since any business passes on costs to the customer, each user will be paying extra because they are assumed to be “thieves” by Universal. That’s the common sense difference.
MDN,
Make your comment but please refrain from making fun of women’s sport, it’s so 1970s.
” Universal has a brilliant new negotiating tactic.
“Give me what I want or I’ll shoot myself in the foot!” “
The phrase “Cutting off your nose to spite your face” seems more apt.
So next Universal wants a cut of all the radio, CD players sold?? Maybe my firstborn?
Greeeeedy bastards
“I wonder why MDN has chosen not to report the DECLINE of Mac software/hardware.
http://marketshare.hitslink.com/report.aspx?qprid=3
http://marketshare.hitslink.com/report.aspx?qprid=5
Internet Explorer use went up! GO MICROSOFT!”
Huh? I’m confused. Last year, IE had 83.56%, Safari was 3.16%. Now it’s 78.84% for IE and 4.49% for Safari. Granted there are some flucuations month to month but the trend is obvious.
They have a snowballs chance in…
It’s about the music. Lawyers suck.
I ain’t gonna be paying shit to Universal, while buying an iPhone. I pay when I buy the music.
They gotta be fucking crazy.
“Granted there are some flucuations month to month but the trend is obvious.”
Sure is obvious:
Safari has dropped 7% last month despite launch of the Windows version.
WinTel Mac use has dropped 1% and PPC Mac use has dropped 12%
And meanwhile Windows Vista use increased 21%
Coincidence?
“Sure is obvious:”
When you look at totals for all of the vendor’s OS’s.
Apple went above 6% in Jan 07 and has been flat within an 0.4% band ever since.
Microsoft has been flat within a 0.8% band between 90 and 91% the whole last year.
Summary.
Microsoft’s not loosing any significant share, and after a step up in installed base when the new Intel Macs were released. It’s settled to a point where the faithful are swapping PPC Macs for Intel ones.
There’s a reason why “Computer” is gone from the name and Apple is releasing Mac software for Windows. Steve can see the writing on the wall.
Big deal. So buy the CD and load it into your computer. Besides, the new releases as “critic” above pointed out are crap. And anything decent I already own.
I’d rather iTunes not deal with them.
If there WAS anything I desperately wanted I coud just borrow the CD from a friend and load it to Laptop > iPod anyway.
Pound salt Universal.
If Universal disappears from the iTunes Music Store, pirated Universal music will pop up everywhere on the internet and even honest people like me might consider it for the first time.
Go ahead Universal, make my day!
“There’s a reason why “Computer” is gone from the name and Apple is releasing Mac software for Windows.”
Apple explained this…in rather plain and simple english…they don’t just make computers and software anymore. How hard is that to understand?
“Steve can see the writing on the wall.”
In your dreams.
If I don’t find what I’m looking for in iTunes, very simple I’m go to visit one of thousand “music pirates” website and download it for free…..do you like that Universal????
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Go Ciber-Pirates again Universal
Like Universal is really going to pull their music from the third-largest retailer in the US. Universal is not going anywhere. Neither are any of the other big music players. And Apple knows it.
“they don’t just make computers and software anymore. “
Soon to be they Just Don’t make computers and software any more.
“Like Universal is really going to pull their music from the third-largest retailer in the US. Universal is not going anywhere. Neither are any of the other big music players. And Apple knows it.”
Nor is Apple going to loose a major player in the music, TV and film industry from iTunes and Universal knows it. All both sides are doing is posturing and arguing about is how to split up the money.
I hope Universal knows what they are doing in threatening a monthly contract with Apple. Either it is a ploy to extract a better deal from Apple and they intend to sign a long term deal, or they have a deal with someone else up their sleeve.
Moving to a monthly deal would mean Apple would have to offer them a less favourable deal financially (less % per song/album). With the increased lawyer fees for negotiating monthly, it is likely to hurt Universal a lot more than they gain. And given Universal’s stance on DRM, they have refused to accept the higher value DRM-free songs.
The world is not about to give up their iPods or iTunes. If we search for an artist and don’t find them in iTunes, we buy someone else (or don’t buy at all, or pirate it). All this would mean less cocaine & heroin for the artists, and we would hate to have that happen.
The world has rejected ZunesForSure players and unless some online shop suddenly is able to offer a huge catalog of DRM-free songs, we will stick with iTunes. And even if such a shop did exists, it would have to offer songs at the same price as iTunes or less and pay Universal the same fees or higher.
“With the increased lawyer fees for negotiating monthly, it is likely to hurt Universal a lot more than they gain.”
I doubt it’s anything other than a contract which automatically renews month to month unless terminated. So no negotiation, just the ability for Universal or Apple to walk away, or change terms with 1 month’s notice.
“mean Apple would have to offer them a less favourable deal financially “
Why?
As noted, they both need each other. As much as companies want to get their songs on iTunes, it’s not the only route to people buying songs for an iPod. It’s not even the most commonly used way of buying songs for iPods.
However iTunes without content from major labels wouldn’t be much use.
So Steve’s not going to let Universal walk away.
“unless some online shop suddenly is able to offer a huge catalog of DRM-free songs”
What makes you think that Universal wouldn’t rather set up an online store selling DRM free songs for all players rather than sell DRM free songs through iTunes?
Regarding the person who said Universal loses 15% of their business, but Apple loses 33% of their business, so perhaps Apple has more to lose: Apple just about breaks even on their iTunes sales–its main purpose is to drive sales of iPods–so they’re hardly losing any money. Universal, however, assuming they’ve sold roughly 1/3 of the 2.5 or so billion songs sold on iTunes, and assuming they get $0.90 per song, has made about $742,500,000 (2.5 billion songs x .33 of iTunes songs sold x $0.90). So who has more to lose? I’m guessing that people who download songs from Universal’s other online music outlets will either put lots of those songs in the iPod or, if they’re protected, will find ways to do so anyway. Or, of course, use Limewire or any of the other peer-to-peer networks to get their music. Overall, I don’t think Apple will suffer much as a result.
As someone else said earlier, “Remember, dinosaurs had very small brains.”
“Remember, dinosaurs had very small brains.”
Like Sheep and Apple Fanboys.
“if Universal want to rip the piss and withhold their music cat from iTunes, then i will respond in the manner which they deserve.
I will not buy their products, if like it that much i will copy it.”
And if your favorite beef jerky and chewing tobacco suppliers choose to stop selling their products in Wal-Mart, you’ll presumably steal them from other stores too?