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Universal Music Group posts

Filed under: iTunes, Music

iTunes LP broken for indie record labels?

Update: ElectricPig is reporting on 10/13 that an Apple spokesperson said the LP format will be opened up for all, indies and majors alike.

There's word from an indie record-label that iTunes LPs are not for the indies. Introduced at Apple's "It's Only Rock and Roll" event in September, the iTunes LP format adds "bigger than a matchbook" album art, song lyrics, video clips, and other extra content to albums sold through the iTunes store.

Brian McKinney of Chicago-based label Chocolate Lab Records saw some promise in the new format and started looking into the idea of producing for iTunes LPs himself. But the truly small labels may have a hard time getting in. McKinney spoke to the digital distribution manager at his label's distributor, who reportedly told him that Apple charges a $10,000 production fee for iTunes LPs. $10,000 may be less than the heads of Warner Music Group, Sony BMG, Universal Music Group, and EMI spend on breakfast, but could be cost prohibitive for the little label that could (if it had $10,000 handy for each of its acts).

It's not just the cost that prohibits the little labels. According to McKinney, it's also Apple. McKinney says his dude in distribution was told "that LPs aren't being offered to indies and that there are only about 12 LPs being offered right now."

"Foul, foul, filth and foul," cries Cult of Mac's Pete Mortensen. Like a financial analyst moving a stock from "buy" to "sell," Mortensen says iTunes LP has gone from "the first digital album good enough to criticize," to "the first major content misstep in the history of the iTunes Store." Assuming that Chocolate Lab's distributor info is on the up-and-up, Mortensen thinks iTunes LP is "less a new format for music than it is a new form of paid advertising on the iTunes store."

Continue readingiTunes LP broken for indie record labels?

Filed under: Analysis / Opinion, iTunes

Universal to sell DRM free songs, but not on iTunes

It is safe to say that most folks aren't big fans of DRM, though Apple's flavor of DRM (FairPlay) is flexible enough that most will never run afoul of it. You might remember Steve's letter to the music industry in which he extolled the virtues of DRM free music. EMI has been the only major record label to adopt this DRM free stance, and much of its catalog is available via iTunes Plus for $1.29 a song (you can still get the DRMed versions for $.99). EMI is about to have some company in the DRM free music biz, pretty soon.

The New York Times is reporting that the Universal Music Group is going to be selling part of its catalog sans DRM for the next few months to gauge consumer interest. This is great, but the only catch is that these DRM free songs won't be available via iTunes. Universal, in an effort to lessen Apple's dominance of the digital music market, will be offering up the DRM free music via Amazon, Google, RealNetworks, and Wal-Mart for $.99 a song (a price many accredit Apple to pioneering).

You might recall that Universal recently decided not to renew their contract with Apple to sell music in iTunes, and switched their commitment to a month by month basis. What does all this mean? I am betting that this experiment will succeed, and that Universal will reverse their decision and sell DRM free tracks via iTunes, why not sell your wares on the top online music store?

Filed under: iTS

Drudge: Universal Music will not renew iTunes contract

The Drudge Report has posted a newsflash claiming that Universal Music Group will not renew its annual iTunes contract. So what's going on? Hard negotiations? The recent EMI/iTunes Plus deal? Or maybe UMG just doesn't like earning a ton of money through iTunes? I'm not all that familiar with the Drudge Report and since no sources are cited I suspect this "flash" should be taken with a rather large grain of salt.

Thanks to everyone who sent this in.

Update: Pretty much confirmed by WSJ--Thanks Charles

Filed under: iPod Family

UMG Doug "You are all Pirates" Morris eyes iPod

Remember Doug Morris? The Universal Music Group chief who claimed that iPods are repositories for stolen music? The guy who negotiated the dollar-per-Zune piracy-insurance scheme?

According to Australian IT, he's working on putting together an iPod royalty fee similar to the Zune fee during the next round of negotiations with Apple.

"It would be a nice idea. We have a negotiation coming up not too far. I don't see why we wouldn't do that... but maybe not in the same way," he reportedly told Reuters.

Universal Music CEO says iPods are "repositories for stolen music"

Universal Music Group CEO Doug Morris is the latest tech exec to call iPod users thieves. Ballmer started it. Then came Glaser - who also dared call His Steveness "pigheaded." The comment was made in the context of the UMG boss stumping for Zune and applauding Microsoft's agreement to pay protection money extortion royalties to the bag man Universal with every Zune sold.

About the iPod, Morris said "These devices are just repositories for stolen music, and they all know it,. So it's time to get paid for it."

Gee, Doug, you're not still bitter about Apple rebuffing trying to buy your company, are you? Never mind. That was a rhetorical question.

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