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Apple pressuring music publishers over Amazon Daily Deal

Amazon has used low-priced, exclusive "Daily Deals" to promote its MP3 store successfully, and Apple's not happy about it. In fact, the iTunes team is trying to talk publishers out of participating.

According to Billboard, participating labels entered into the program with Amazon in 2008 without paying a thing. It was simply meant to increase the store's publicity. Two years later, that's changed. An unnamed major-label head of sales told Billboard that "[the] promotion morphed into something where the labels make arrangements to provide an exclusive selling window with Amazon for a big release expected to do a lot of business on street date [the day the new release is available for general retail sales]."

Two years in, the labels are motivated to offer Amazon first dibs on major releases at a significant discount, and that's gotten Apple's attention. Billboard's sources suggest that iTunes executives are trying to persuade labels to stop offering Amazon these exclusives, and have even gone so far as to pull their own promotions for those releases.

In response, Billboard reports, certain label executives recently opted out of Daily Deal promotions for such big names as Corinne Bailey Rae, Lady Antebellum and Ke$ha (Sony Music Entertainment denies considering a Daily Deal promotion for Ke$ha's "Animal"). Additionally, Amazon is said to be altering the deal to not require exclusivity, but Apple's still unsatisfied.

Oh what a tangled web we weave, when first we practice to sell digital music.

[Via AppleInsider]


Amazon has used low-priced, exclusive "Daily Deals" to promote its MP3 store successfully, and Apple's not happy about it. In fact, the...
 

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GadgetGav

Glad to see you read MacRumors too Dave. I see you took the time to change one word in their headline from yesterday, but when I loaded up TUAW this afternoon, I thought I was looking at a cached version of a webpage. Then I realized I'd read this story on MacRumors YESTERDAY, as you and AppleInsider must have too.

Maybe you should all just link back to the Billboard article that's the actual source of this story instead of just link-link-linking to each other.

March 04 2010 at 2:59 PM Report abuse rate up rate down Reply
.Ray.Ray

Does anybody ever wonder, "hey, is this good for the artists?"

March 04 2010 at 2:09 PM Report abuse rate up rate down Reply
cargoplex

I find this to be much more scuzzy of Apple than the whole patent lawsuit against HTC. Sometimes I have to take a step back from my beautifully functional Apple hardware and remember that they are still a gargantuan corporate machine.

March 04 2010 at 2:04 PM Report abuse rate up rate down Reply
wosuh

do we finally have a successor to Microsoft, the old industry bully?

March 04 2010 at 1:23 PM Report abuse rate up rate down Reply
Rob Welsh

To be honest most of the music Amazon promotes like this is manufactured garbage anyway. It probably gives the record companies an opportunity to bump up sales, which therefore gives them an unfair way of manipulating the charts and extra air play for promoting their latest artist. Lets face it music executives don't care about you or I they're just in it for the money. Which ever way this goes you can guarantee it wont be in the favour of consumers.

March 04 2010 at 1:10 PM Report abuse rate up rate down Reply
Sara

I love when apple feels the need to trump the competition.

But only when they do it thru a superior product. This is just lazy.

March 04 2010 at 12:59 PM Report abuse rate up rate down Reply
1 reply to Sara's comment
ladiegeek

I agree. Why doesn't Apple offer the same deal? The article states that Amazon will not want exclusivity, so why take a great deal away from consumers? Remember us Apple? We buy your products!

March 04 2010 at 7:13 PM Report abuse rate up rate down Reply
gabizou

I'm sorry but sometimes it's just that the publishers are acting like the music industry, apple had to push them to go with the 99 cents per song, now we are doing the same with publishers.

March 04 2010 at 12:47 PM Report abuse rate up rate down Reply
paul merrill

Sometimes Apple acts like a communist country.

March 04 2010 at 12:42 PM Report abuse rate up rate down Reply
Mike

Anti-competitive practices.

March 04 2010 at 12:41 PM Report abuse rate up rate down Reply
1 reply to Mike's comment
Charli

yeah. by Amazon. Not Apple.

The issue here is really about dates. Labels for ages have pushed this 'street date' game so that everyone was on a level playing field. No one could corner early sales by having something first. Etc.

Then Amazon pulls this 'give us time to be the only seller before everyone else' move. Before other digitals AND brick and mortar. So Amazon has an advantage over everyone else. Not Fair. Even without requiring the exclusive date, Amazon is likely still encouraging it, offer huge banners etc

Apple is basically asking for equal treatment. Don't even make the date issue an option. If there's a street date, there's a street date. For everyone. Otherwise they aren't going to give up their valuable marketing space to someone that has it covered via Amazon. They will play fair and let someone else who needs it more have that spot. It's up to the labels.

March 04 2010 at 3:15 PM Report abuse rate up rate down Reply
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