Looks like a pillar of iTunes content might be on the brink of collapse -- Universal Music, the world's largest music business, has officially opted not to renew its contract with Apple for vending music on the iTunes Music Store. We don't know specifically what caused Universal to turn away -- perhaps it's the weight of the rising anti-DRM movement among consumers, or perhaps it's because of Stevie J.'s brash negotiating tactics,
continual refusal to hand over iPod cash, or oceanic persistence in keeping tracks locked in at $0.99. Whatever the reason, we can't say we're all that surprised; Universal's been a pain in Apple's ass for years now. So what's the end result? Well, Universal music will still be sold through iTunes at will, so that means consumers can keep buying tracks for the time being, but Apple runs the risk of losing Universal's content on very short notice if the companies don't make happy with one another and put pen to paper once more.
[Thanks to everyone who sent this in]
posted July 2nd 2007 12:45AM
Microsoft always makes deals that it hopes will screw up the competiton or has back doors in them.
Microsoft Gleefully paid millions of dollars to fund^h^h^h ahem purchase UNIX licenses from SCO. The scumbags who were trying to extort all Linux users everywhere.
When Microsoft settled with Immersion over rumble the contract specifically had penalties if Immersion reached a deal with Sony.
Now Zune is almost non existent in the marketplace and a per/zune fee is a pittance. But priceless if they can plant the insane idea of per device extortion is viable and screw over Apple with it's zillion IPODS. Not to metion consumers who will ultimately pay in both cases anyway.
Universal and Microsoft should star in a new tech film: Slimy and Slimier.
Microsoft had to make sacrifices into an already well made music player industry. It's not like your first entry into a different market is going to be real easy and smooth.
All companies have done pretty much nasty lawsuits. You might as well take Google down for being dumb about Google not being integrate into Vista Desktop search. All companies give out stupid lawsuits.
People could care less about the so called Universal tax. While I don't want my money to go to Universal, it's really part of the Zune's price. It doesn't cost any more than the iPod is. It's even been marked down lately. Saying that the Zune is non-existent is dumb. There's a million Zune users out there, and I doubt that they are non-existent. Like I said before, Microsoft probably had to make sacrifices to bring their player to the market. It's just business. Apple has some slimy tactics if you haven't taken notice.
So your comment is pretty much invalid.
Why does the collective IQ of Engadget drop into the single digits every time Microsoft or Apple is mentioned?
I don't buy music on iTunes - I'm one of those weirdos who believes if you're going to spend >$8 on an album, you should have something tangible and easy to use on a multitude of devices to show for it.
That being said, I see this as a really bad move on Universal's part. Like it or not, iTunes is the most popular distribution method for digital audio in the world today. I really don't believe people will switch to an alternative online music store purely to access Universal's roster of artists. People will be disappointed if they are fans of particular artists, but not enough to ditch their iPod and iTunes-bought music.
Also, I find it very amusing that Microsoft/Zune advocates are so derogatory towards iTunes and the iPod. Before announcing the Zune, Microsoft were extremely critical of their business model (http://www.pcworld.com/article/id,112983-page,1/article.html). Suddenly that business model is A-OK now they have a product that does the same thing?
All of these are companies exist for one reason - to make money. No one company cares more about you than any other, and they certainly don't need you fighting their battles for them on blog comment pages.
If you bought a product and you enjoy it, that should be all that matters. Arguing about it on a web site suggests you're compensating for buyer's remorse.
Anyone who buys and worships an ipod is a moron. Stop following the cool kids and think for yourself. Ironically, Apple does not want you to "Think Different" anymore.
I have an 8GB Sansa ($150). It puts the ipod Nano to shame and it costs $100 less. It plays mp3s, videos, digital FM Radio, Voice recorder, jpegs, and looks a lot nicer than the Nano.
Ok, first off calling people morons is no way to start a conversation.
The Sandisk is great and has many things the nano is lacking. However it only works with windows xp and windows media player 10+ according to sandisk.com which is a deal breaker for us osx people. At least ipods work with osx, xp, and vista.
Expansion slot is nice but limited to 2 gig cards. It works with mp3 or wma, but what about lossless codecs? Don't see them mentioned. Also looks as if all videos have to be converted to some uncommon codec which is time consuming, ie most people will ignore it bc it isn't convenient.
WHO CARES!
Seriously, Universal is just another 600 pound gorilla. You do not need their product anyway.
Support your local music scene. That way, YOU control exactly where your money goes.
1). Microsoft, I highly doubt, is directly involved in this in any way. Indirectly maybe, it may be a consequence, but it is still just speculation.
2). Involved or not, Microsoft has lost trust from many consumers, so those of you loosing it because someone is blaming them need to get over it. Loosing trust is like loosing virginity, it doesn't come back.
3). The Zune Marketplace has a fine pricing model. 99¢ per song, or subscription it gives you choice. The pricing model is better FACT. I would use it save a few problems, WMA, WMA+DRM, Macintosh Compatibility, and I prefer iTunes as a media management system. Of course I don't buy much music online anyway.
4). Universal Music controls a good chunk of the Media, however iTunes controls a good bit of sales, and an even higher fraction of Digital sales. Dropping iTunes is suicide unless they plan for some other seller to leap to the top, or some other seller thinks they can leap to the top if iTunes looses Universal. iTunes has no real competitors for Digital download, they exist, but its like the Microsoft Apple Relation ship for computers, reversed.
5). WHY MUST BATTLESTAR GALACTICA BE ENDING ON SEASON 4!?!?!
Stupid move by Universal.
Applause for Jobs/Apple not giving into Universal's demands.
It almost seems like Microsoft released Zune to hurt Apple, not through sales, but by giving into the stupid demands of the record companies so that they have more leverage for when negotiating with Apple.
The one flaw: the 100,000,000 iPods vs. the 1,000,000 Zunes
nice anti-semitism! but I think you mistook this for a Neo-Nazi blog.
Well this would mean bye bye to Nelly Furtado. I just do not get why recording artists don't get their own studios and then post it to iTunes so that you do not have the middle men. The middle men are starting to get kicked out the door so if artists start doing independent recordings, they are going to lose.
Can anyone else besides me smell the giant game of chicken that is being played right now? I mean it is obvious that Universal isn't going to cut services and I highly doubt that Apple is going to give into any obscene demands that Universal will insist on having (I doubt anyone thinks Universal getting a piece of iPod sales is really "sticking it to the man").
As for the debate over which type of service is good or bad (renting to buying). I prefer the buying, though if you are only into the latest stuff then go with renting. I prefer older stuff and things not typically found in the three ring circus known as major company labels (right now I'm listening to Yoko Kanno which isn't offered on the services as far as I know and really don't care). Plus having physical copies gives me security incase something screwey happens and I loose service.
Listen I use MS Products for profession and pleasure and I use apple products for profession and pleasure. they are tools and toys, none are perfect and both businesses are predatory. Neither is a pillar of humanity. However what you do with them can be. but bickering over which is better only fuels capitalism. Make your own music with them share it for free beat the system. and really the Emusic model which supports mostly independent labels is superior to both in sound quality compatibility and price and the artists are receiving more of the profit. also this is ware real music connoisseurs go to find whats next and they are the number two online retailer and they have no major labels. now I'm sure I'm gonna get flamed all to hell for this but that's my too cents
Anyone justifying paying $1 for a song versus subscription seems to be forgetting that you'll likely be sick of that $1 song in a couple months anyway. I prefer being able to delete all the bands the radio has worn out and downloading new stuff rather than holding on to all the music I'll never listen to again but can't stand to get rid of because I paid money for it. Having a "remember that song" moment or want to check out some no name band your friend recomended? Download, listen, delete...still only $15 dollars month. No regrets.
Lets project this over a 4 year period, collage or high school lets say.
User A buys an album every month off of iTunes. Prices usually range from $9.99 on the sale albums, up to $15.99 on some of the bigger albums. This is ignoring the 30 track, dual disk albums for now. So lets say most of the albums are in the high end of cost. Avg $15.99.
User B buys a subscription fee to Napster, or M$ Marketplace. $15/mo or $14.99.
Now, lets look at those figures over 4 years. I'll do a basic comparison, and one with WA State Sales Tax.
Product - 4 Year Cost - Sales Tax
iTunes 1 $15.99 album a month - $767.52 - $68.31
Napster $15/mo Subscription Fee - $720 - $64.08
Zune Marketplace Fee $14.99/mo - $719.52 - $64.04
The month my month cost difference is $1, now this adds up a good bit over 48 months, but it doesn't take into consideration a few key problems.
1) There is no way for a subscription based model to work without DRM. It just can't be done.
2) The second you stop paying, all of your music goes bye bye. What if you go on a trip, or don't buy any music for a while, your money is wasted.
3) After your initial buying of music, there isn't always going to be an album out every month that you even want, so you'd just be paying for music you already have.
I haven't bought a new CD/Digital Download for a few months. I've spent a total of maybe $250 on iTunes. (Most of my music is from CD's, not iTunes) If I had gone the way of Napster it would have cost me $900 + sales tax. So $980.10 total. Not a pretty sight. Also, by using a subscription fee, you limit your avenues of purchase. This is because you pay for something TWICE if you buy music from any other source.
If you do download a couple of new albums or more every month, then the model may work for you. The problem is this is a model that sounds much better than it is for most people, because most people don't download as much music as they think they do.
Either way in the end, the cost is close enough, that it's just choose your poison.
Universal continues to stick it's head further up it's ass.
First, it was exclusive backing of HD DVD... an excellent format that's doomed to failure, now it's dissing iTunes because they want more $$$.
It sounds like Universal wants to charge higher prices while keeping DRM. If I were Steve, I would tell them where to shove it. People WILL NOT pay $2 per track or some such nonsense.
This doesn't hurt Apple since they don't make that much profit from iTunes. People don't buy iPods BECAUSE OF iTunes... they buy from iTunes because of the iPod. People will just download Universal stuff (illegally) or buy a CD here and there.
Since more and more people buy tracks instead of whole albums, I don't see consumers deciding to change course and buy whole CD's from Universal artists simply because legal iTunes downloads aren't available.
Ladies and gents, start your CD Burners and P2P apps!