Universal Music in talks to create iTunes Store competitor

Universal Music is desperate for Apple to face some real competition in the digital music download arena that it is now trying to work with the other record labels to launch their very own iTunes like store. The twist? Universal would like to see hardware manufacturers pay a fee (something like $5) for each device. That device would then have a free, to the consumer, subscription to the label's music service. Universal figures people will be happy because they can get the music they want on their player they want (as long as it isn't an iPod), the hardware manufacturers will be happy because people won't be buying iPods, and the labels will be happy because they can maintain their vise-like grip on the content their artists produce.

How can anything go wrong?

[via iLounge]