As Erica previewed earlier, the expected cash register reconciliation between the iTunes UK store and the other European stores is officially in the works, press release below. Interesting to note that Apple is throwing down the gauntlet with the labels on UK vs. Eurozone wholesale music pricing, so that we might see some subtractions from the UK store if the labels don't jump in line.LONDON-January 9, 2008-Apple® today announced that within six months it will lower the prices it charges for music on its UK iTunes® Store to match the already standardised pricing on iTunes across Europe in Austria, Belgium, Denmark, Germany, Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland and Spain. Apple currently must pay some record labels more to distribute their music in the UK than it pays them to distribute the same music elsewhere in Europe. Apple will reconsider its continuing relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months.
"This is an important step towards a pan-European marketplace for music," said Steve Jobs, Apple's CEO. "We hope every major record label will take a pan-European view of pricing."
Full release here.
Reader Comments (Page 1 of 1)
1-09-2008 @ 6:03AM
Russell said...
I know know it takes two "pan-European" references to annoy me in one SJ quote for some reason. As for Apple's plan, why the 6 month delay? I say just tell the labels you have two weeks or we cut you off. How much negotiating is involved if the end goal is to match already set terms or be cut off?
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1-09-2008 @ 6:12AM
Michael Rose said...
Apple != the music mafia -- "two weeks or we shoot Oasis" is not a negotiating position. :-)
1-09-2008 @ 6:13AM
R_K said...
Now, what about other European Union countries rather than mentioned?
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1-09-2008 @ 6:42AM
lurch_mojoff said...
Tough luck for now, I guess. I think only the newest EU members (i.e. central and eastern european countries) don't have iTunes stores and I'd wager the distribution rights there belong to a disjoint group of companies or local RIAA-like organizations. That means a lot of negotiations with questionable return - no offense, but there isn't that much buying power in those countries.
1-09-2008 @ 7:10AM
swisspolo said...
Finally, it's nice to se that Apple are rethinking their pricing policy. I don't mind loosing out because of the exchange rate (£1=$2 hehe!) but it was a little bit annoying that the French et al got stuff cheaper. It's probably 6 month due to a contract clause to protect the record labels from the "Apple Mafia". To be honest though Apple don't have to do this at all. Until UK properly integrates itself into europe (a day i hope never comes) we can't get too annoyed if the rest of Europe enjoys policies that we don't, the open border policy is the first that comes to mind
Simon
@sipedia.co.uk
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1-09-2008 @ 7:21AM
Anon said...
With the rate that Sterling is falling we could end up seeing the UK price for iTunes tracks go up!
I'm sure there were two different EU anti-trust cases against Apple. This price differential case never really had any legal weight. The national restrictions one is the important case.
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1-09-2008 @ 8:14AM
mentalsticks said...
So how about unified content, too? There's quite a number of French songs Id love to purchase...
Also I think the timing is far from random. It may have anything to do with video rentals coming to Europe, too!!
(think=hope)
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1-09-2008 @ 10:16AM
JM said...
I don't think the individual Stores should be integrated, since the musical taste in Spain is hugely different than that of, say, Finland.
HOWEVER, I think they should allow users to buy from any EU store (i.e. I have a iTS Spain account that would allow me to buy songs from Spain AND any other EU country). That would make a lot more sense.
1-09-2008 @ 8:52AM
Joid said...
The English shouldn't be so stubborn and simply accept the €
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1-09-2008 @ 10:35AM
sam said...
I agree. If they aren't wiling to unify currencies I don't see why they should get the same prices.
Props to Apple to making this move but I don't see why it was Apple's fault to begin with.
1-09-2008 @ 11:52AM
Mike said...
Why, thank you.
Do feel free to decide what's best policy for someone else's country, won't you?
Anything else you'd like to decide for the UK--or anyone else ... Norway, Canada, Papua New Guinea. Do feel entitled.
1-09-2008 @ 5:53PM
Joid said...
Well, then they should have kept their pubs also closed after 11!
*if you do it good, you smell irony*
1-09-2008 @ 10:30AM
D. Toliver said...
I hate when folks refer to Apple as a group or more than one entity. "It's nice to see Apple are..." Refer to Apple as a "thing," for lack of a better word.
Okay, please continue.
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1-09-2008 @ 12:32PM
Theo said...
It's a UK/US English thing, we refer to plurals differently.
1-09-2008 @ 10:56AM
OWRC said...
As already mentioned at the rate the pound is falling against the euro the cost will more than likely go up if we look for parity with Europe. It would be good however to be able to shop in whichever iTunes shop i like.
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1-09-2008 @ 11:01AM
Daniel said...
Let's be honest here: the reason Apple is making this change is due to a European Commission anti-trust investigation that Apple neatly failed to mention in their press release. The Commission's press release is perhaps more informative ...
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/22&format=HTML&aged=0&language=EN&guiLanguage=en
Notice something peculiar? "The Commission’s antitrust proceedings have also clarified that it is not agreements between Apple and the major record companies which determine how the iTunes store is organised in Europe." So, this apparently has much less to do with the labels than the summary makes seem ...
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1-09-2008 @ 11:57AM
Tony said...
There's nothing to stop you buying from another european store anyway (single european market) so there's no point in differentiating the prices.. everyone will just go onto another store.
Don't know why they don't go the whole hog and unify the content.. but I could ask the same as Amazon, etc. (I frequently buy from the french and german amazon stores when their prices are cheaper).
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1-09-2008 @ 2:51PM
nosebag said...
Except that itunes requires you to have a payment card registered in the country you are purchasing from...