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189 Comments
- cambrown99, on 10/11/2007, -13/+277In future news: Universal Music's profits have dropped significantly.
- deadbaby, on 10/11/2007, -5/+158No wonder the music industry is in trouble. They're going to pull out of the 3rd largest music store in the world simply because Apple won't let them raise prices? Good call guys. Good call.
- zweben, on 10/11/2007, -3/+124If they take their tracks off the iTMS, i'm not going to buy their overpriced music on CDs. I'm either going to pirate it or just stop listening to their music altogether.
The record industry is full of idiots. - garryw, on 10/11/2007, -16/+73Remember everybody bashing Zune six months ago for making a 1$ per unit sold deal with Universal? Well, this gets interesting now.
- drn666, on 10/11/2007, -6/+57Universal once tried to dictate terms to Blockbuster in their video business. Blockbuster has 70% of the rental market in the United States. Universal even threatened to pull their content from Blockbuster stores. Blockbuster said "fine, leave". Universal blinked.
Point is: Universal needs Apple more than Apple needs Universal. Universal best remember that. - pimpinainteasy, on 10/11/2007, -12/+61You can still "buy" music?
- theTVaddict, on 10/11/2007, -1/+48Agreed totally.
Right now if its on iTunes, I'll gladly spend 99 cents on a song. Afterall I spend 5 bucks on a mocha at Starbucks.
If it's not on iTunes, I have no problem finding it online for free.
Way to once again shoot yourself in the foot Universal... get a clue. CD's are over. - tomz17, on 10/11/2007, -5/+43queue recording industry bitching about poor sales...
This will hurt Universal sales WAY more than it will hurt Apple. - tech42er, on 10/11/2007, -3/+40If Universal pulls out, we'll all just pirate their music. EMI will still make money. Sadly, the Big 4 are NOT in competition with each other.
- Bootes, on 10/11/2007, -1/+35"The move does not mean, however, that Universal will remove its catalog from iTunes immediately. Rather, the world's largest music company is expected to arrange a short-term sales agreement."
- ericdano, on 10/11/2007, -9/+41Yeah, and the Zune has sold sooooo well.
- ericdano, on 10/11/2007, -2/+26When you buy something off the iTunes store, you own it. They can't deactivate them. Get a clue guy. You are thinking SUBSCRIPTION MUSIC.
- seibed, on 10/11/2007, -4/+27but that's OK, because all drops in music buying are related to piracy, not bad business decisions or crappy music... right?
- Quix, on 10/11/2007, -3/+24"Major labels *can* afford to move to Zune" - fkr3
Yeah, I hear there are *dozens* of Zune owners now.
Apple's bread and butter isn't in selling music, it's in selling hardware. Universal, however, is in the business of selling media. Tell me again who can't afford to lose whom? - roxics, on 10/11/2007, -2/+23The question now is, are the people going to have to go to the music or is the music going to have to come to the people?
Most of my music doesn't come from iTunes anyway. But I like the selection when I do purchase. And I'm not going to buy a Zune just because the record company has a better deal going with Microsoft instead. They are going to have to come to me on my platform of choice, which is the iPod. - Loyaleagle, on 10/11/2007, -6/+26If you read the second paragraph it really just means their new contract will be shorter-term....
- christianw, on 10/11/2007, -2/+18dont worry everyone. this release is just a ploy by universal for what they think will be a big bargaining chip at the negotiation table. one thing history has taught us, is steve jobs cannot be intimidated ever.
- superkendall, on 10/11/2007, -2/+17Boy, first they back HD-DVD, and now they are getting out of iTunes. Is Universal allergic to money?
If I were Apple, I'd say "fine then, if you feel that way there's no need for the third largest music store in the country to continue to sell your music - anywhere".
A powerful object lession to Universal, and to other media companies.
I'd be fine if iTunes scrubbed any partner not willing to go for DRM-free iTunes+ - PainToad, on 10/11/2007, -1/+15Stev Jobs maybe a complete jerk (or may not be, neither of us know that), but there's no denying Apple's business model is far more customer orientated than the Record Labels'
- paulburke, on 10/11/2007, -1/+14Go through Google News to see the full story:
http://news.google.com/?ncl=1117767506&hl=en - smackhero, on 10/11/2007, -5/+17you really think that iTune users--all 30+ million of them as of january '07--are going to switch over to a different media player & music download service? and you think iPod owners (90+ million) are going to start using MS Surge?
- Zero2aHero, on 10/11/2007, -0/+11iTunes now ranks third in music store sales (with 8% of the market), behind Walmart and Best Buy. Are you saying those music sales are coming solely from Apple nerds?
- garryw, on 10/11/2007, -2/+13 I live in a cardboard box in darfur. There is a little hand crank on the side of my $100 laptop to keep it powered. I would respond but my arm is getting tired.
- obey43, on 10/11/2007, -1/+11theres no way that could happen, even if thats true "they dont own the songs" as some say, imagine the backlash
- pradaaddict, on 10/11/2007, -5/+15don't let the door hit your ass on the way out!
- Radionesiac, on 10/11/2007, -2/+11what? if you purchase it, you DO own it. that's the point.
- TinFoil209, on 10/11/2007, -1/+10Umm there is NO tree with this damm Safari beta on PPC. To fkr3 I reply.
Everyone looks at what the device will support BEFORE buying it. No one will ditch iPod cause Metallica switched to Zune via its record owner. One thing Apple and satellite radio embraced is the fact that music piracy is super easy. The only thing that stops it is to please the "new internet user" so that they feel paying for it gives them bonuses. Either it be fast one click downloads. Software to make it easy to listen to, organize, and transfer to device(s). Your not selling the music, your selling the experience to get and enjoy it at a reasonable price.
P.S. Ohh and now tower records gone. The nearest record store is over .99 in gas away round trip. - TheMadCow, on 10/11/2007, -1/+9I don't see anything mentioned about the iPhone.
- ibone, on 10/11/2007, -2/+10This would be ***** hilarious
- joshlewis, on 10/11/2007, -2/+10This just in: people worldwide boycott Universal music.
Honestly, I wish the big bands on Universal would just leave them and go to EMI. - yfph, on 10/11/2007, -0/+8Well, a short term agreement obviously works in Universal's favour as they can have more chances to strongarm Apple more frequently in order to sweeten their pot. Now, let's see what Apple how responds...
- hermes369, on 10/11/2007, -1/+9Ah, the attempt to squeeze. Why do these guys suck so loudly? F-ing profiteers.
- bmnrocks, on 10/11/2007, -1/+9Don't worry though, I am sure that even more people will learn about P2P file sharing really quickly if something like this would happen.
- scotty1024, on 10/11/2007, -9/+17Well you know the French (Universal is owned 100% by a French company) need the extra money to keep their country from being burned down by its job-less youth. I hope this move breaks Vivendi and the artists get a shot at more of the $.99.
- jongos, on 10/11/2007, -0/+8Sounds like they are either trying to intimidate Apple or they have some other plan for selling their content in the works.
- Barnolde, on 10/11/2007, -1/+8Universal is also the exclusive backer of HD DVD, so they're not the smartest decision makers. Seriously, iTunes is only going to grow, why get out now?
- kingkilr, on 10/11/2007, -3/+10Yes, yes it is. I am working on a new radio site and I want to kill everyone, this industry is ***** up and convoluted beyond belief.
- zachgc, on 10/11/2007, -3/+10Exactly, Apple doesn't exactly rake in tons-o-cash from song sales. If anything, Apple sees iTunes as a feature of the iPod. However unlikely, if somehow Universal decided to pull their catalog from iTunes, the effect on overall iPod sales would be negligible.
On a personal note... I couldn't care less about not being able to pay for the privilege to download a 50 Cent or Eminem album. - hypercrypt, on 10/11/2007, -0/+6I think it's 300 million users (iTunes use is greater than iPod ownership, obviously).
I do not think that most iTunes users will be purchasing music from any other store, especially the iPod users. The "additional program" would probably be LimeWire, a Bittorrent client or another P2P program. I for one am not going to pay any money to purchase a song in wma format that will not play on my iPod, thus it will have to be iTunes or CDs, not Napster or any other DRMed market place. - garryw, on 10/11/2007, -3/+9Good point. That has to factor into these negociations. The fact that everything can be had for free if you want it for free. People dont buy 80gb ipods to fill them with $1 songs do they. That would cost as much as a house.
- DaveClarkOne, on 10/11/2007, -2/+8Why wait until Universal pulls the plug? I'll be paying more attention to their catalog starting today --I'll skip them entirely.
- psimac, on 10/11/2007, -0/+6Apple could just become their own "record company" and distribute music for artists directly. These record companies need to whither away and die, along with the RIAA. Their antiquated business model, as well as their job security, is something they are desperately trying to hold onto. They are dinosaurs, who will be dead in 10 years. And they keep doing dinosaur things, that will end up hurting them in the long run--like trying to control Internet radio stations with outrageous royalties, citing that Internet radio doesn't promote music! I've learned more about musicians listening to Pandora than I ever did from some record company's marketing. I say give the control back to the artists and let them sell through iTunes, eMusic and others. Heck U2 is so powerful, why do they remain loyal to a record company? Dinosaur business model, for sure.
- fireball74, on 10/11/2007, -0/+6I don't think Universal is going anywhere. They won't go for a long term contract, but short term contracts so they can negotiate more often. It's a CYA so they don't get locked into a long term contract and end up not liking the long term effects.
Anyway, it's kind of moot at this point anyway. They'll still be there. - bluechips23, on 10/11/2007, -5/+10That's just lame thinking by Universal. If they don't want to sell by iTunes (one of the only channels where I actually purchase a song), then sure, fine. I won't buy anything made by Universal then. Record companies like Universal are the main reason why piracy still exists.
- zachgc, on 10/11/2007, -2/+7Stop. Being. A. Dick. In that order.
- fkr3, on 10/11/2007, -2/+7No, but if they woke up one day and discovered that all the music they wanted was no longer on iTunes I think they'd be inclined to buy it from wherever that music went to. It wouldn't necessarily be Microsoft, and it wouldn't necessarily mean switching to another program although it could involve using an additional program. The point is, people don't use iTunes for the software they use it for the content they can buy there.
The record labels have bargaining power now - Apple needs them more than they need Apple. Apple's tied iTunes into virtually every product they have while the record labels can move with relative ease to whatever distribution company they want.
PS.
I'm sure I read iTunes has had ~500,000,000 downloads? They surely have more than 30,000,000 users. - inactive, on 10/11/2007, -0/+4OHHH BOO HOOO the record industry will actually have to run itself like a business, not a overly fed fatass machine. They might have to start making actual business decisions, discontinue its millions of factories pumping out cds that sell for $15-20 but cost $0.10 to make.
"We are losing sooo much money!"
No, you are not losing it, you are just starting to get what your product is worth. You are no longer $500 gajillion business with 50% or more of it going directly to bogus overpriced costs, you are now a 300-400 million dollar business and you now make money off the songs, not your ridiculously overpriced cds that you had a monopoly on for so many years.
Cry me a ***** waterfall and then jump off record industry. - saibatsu, on 10/11/2007, -0/+4Simply put, iTunes is a moderately transparent (yes yes, DRM, I know) online marketplace of media for end users. It is a step forward compared to previous avenues of distribution. This is not a judgment of Steve Jobs, nor Walmart.
Universal wants to take a step back because they want to reclaim control. While this is not a bad idea in and of itself, the music industry has always attempted to remain as static as possible while rolling in the cash earned. I'm glad they've been dragged forward repeatedly, and hope they continue to be. The only problem is trying to pull our rights and ownership out from under the tumbling beast before it squishes them.
And for the love of (deity or general sense of morality here, depending on your belief system), use a spell checker. And a grammar checker too, please. Also, dunk your head in cold water a few times before typing up a comment. You end up sounding like an idiot otherwise. - Zero2aHero, on 10/11/2007, -0/+4Nicely said.
Apple should pull all of their music for a day, just to show Universal some direct evidence on how much it will effect them. - compu73rg33k, on 10/11/2007, -0/+4And we can only hope that the company goes bankrupt in the meantime.
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