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UMG likes short term contracts |
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Written by Kostas Tzounopoulos
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Monday, 02 July 2007 |
 According to a rumor on WSJ, Universal Music Group will try to sign a short term contract with iTunes and avoid the yearly contracts of the past. As WSJ says, this won't affect directly the iPod fanboys, but don't think Steve will like it. On the other hand Zune pays UMG "more than a $1" for every Zune sold...
Reading on Gizmodo : This shorter contract benefits Universal by letting it have more flexibility in dealings with other music services, presumably ones like Microsoft's Zune or Rhapsody, or even its own store if it feels up to it. How does this affect you? Our guess is that it won't. Apple will do a lot to keep Universal at the table, which probably means you won't be missing your Alizee or your Amy Grant anytime soon. But it may mean lower profits for Apple itself, and could slow down any efforts in motion to get DRM-free (like EMI's catalog) into iTunes.
If you have a subscription, you can read the full article on WSJ . If you don't, please don't panic because it can cause injuries if you read this while waiting in a line to buy the iPhone.  I suppose our Steve (call me Ballmer) won't panic also, as he pays his $1 / Zune. Related articles:
NARM: UMG thinking about DRM-free
The new Business Model of UMG?
Universal now is after iPod
Microsoft gives revenue to Universal
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