iTunes may face a rival service from Universal Music
Universal said to be prepping music service
/v3-uk/news/1968971/universal-prepping-music-service
15 Oct 2007, Shaun Nichols , V3
Universal Music may be preparing a rival to iTunes after its public falling out with Apple.
A report in Business Week suggests that Universal is seeking to start a subscription service, and has received a commitment from Sony BMG to partner on the initiative.
Universal Music did not return a request for comment, and Sony BMG declined to comment.
Relations between Apple and Universal have been on the rocks since July over a long-term deal to sell Universal's music on the iTunes store.
Jean-Bernard Levy, chief executive of Vivendi, which owns Universal Music, said in September that Apple's revenue sharing terms were "indecent". Apple reportedly pays record labels 71 cents of each 99 cent iTunes purchase.
If Universal does launch a competing service, it would be the second time in recent months that Apple has lost a major content provider for iTunes.
TV network NBC ended its contract with iTunes in August after failing to reach a deal on pricing and moved to Amazon's Unbox service. NBC was responsible for nearly a third of all iTunes television purchases.
© Incisive Media Investments Limited 2010, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Do you agree?
Universal? Sure... !!
LOL! Universal is going to come up with something to compete with iTunes and iPod, when they couldn't do it in the years past, to save their lives... Sure...!!
What a bunch of dorks. They think that they are going to go somewhere with a subscription service that goes "poof" (and totally disappears) if you miss a payment and/or quit paying. What are you going to do, pay and pay and pay until you're 80 years old!?? LOL!
People want to own their music not pay the record labels forever, until they're 80 years old and then have the music go "poof" and disappear into the ether. These guys haven't got a clue at all!!
Posted by Eliakim, 15 Oct 2007