‘BusinessWeek’: Universal intends to take on iTunes
Posted by Dennis Sellers 
Oct 12, 2007 at 6:08am
Universal chief Doug Morris is enlisting other big music players for a service to challenge Apple’s iTunes Music Store, reports BusinessWeek. Universal apparently wants to be able to offer some music by some bands exclusively through other online music services in its attempt to reduce Apple’s control of the online business.
In July Universal issued this statement: ”“Universal Music Group has decided not to renew its long-term agreement for Apple’s iTunes service. Universal Music Group will now market its music to iTunes in an ‘at will’ capacity, as it does with its other retail partners.”
Apparently, the company plans to join forces with other record companies to launch an industry-owned subscription service. BusinessWeek says Morris has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75 percent of the music sold in the U.S.
“Besides competing head-on with Apple Inc.’s music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft’s Zune media player and Sony’s PlayStation and by working with the wireless carriers,” says BusinessWeek. “The service, which is one of several initiatives the music majors are considering to help reverse sliding sales, will be called Total Music.”
The article adds that the business model seems to shape up like this: get hardware makers or cell carriers to absorb the cost of a roughly US$5-per-month subscription fee so consumers get a device with all-you-can-eat music that’s essentially free. Music companies would collect the subscription fee, while hardware makers theoretically would sell more players.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 10,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
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