Slash LaneSteve Jobs helped save a sinking music industry by courting struggling record labels to his iPod + iTunes ecosystem, but his bargaining position hasn't been as strong when it comes to video content. As a result, some music companies are now starting to reexamine their relationships with Apple, writes the Washington Post.
"[A]fter Dec. 1, when Apple's contract with NBC expires, all shows that NBC Universal owns, past and present, will disappear from the site," Ahrens explains. "That includes shows from Sci Fi, USA and Bravo cable channels.
In a letter sent to Apple on Oct. 9, NBC Universal charged the iPod maker with breach of contract, according to the report. Although it's reported the NBC is unlikely to pursue legal action, "the two sides have stopped negotiating and there appears to be no resolution in sight," Ahrens adds.
Meanwhile, Universal Music Group — the world's largest collection of record labels — told Apple earlier this year that it would not renew its yearly exclusive contract and instead would go month-to-month so it could be free to deal with other distributors.
Over the past year, sales of Universal songs for cellphones around the world have soared, Ahrens says. And Universal, which has 35 percent of the U.S. music market, is now discussing deals with U.S. mobile-phone companies.
These moves and others appear to have emboldened other content providers to take a stand against Apple's stringent licensing terms. Citing a "source with knowledge of the discussions," Ahrens claims that Warner Music Group, whose contract with Apple expires at year-end, is now also considering switching to a month-to-month deal for content it offers through Apple's iTunes Store.
While some industry watchers are calling moves by NBC and others "a mistake," NBC Universal spokesman Cory Shields is quoted in the piece by the Post as saying that his company's programs are one of the primary factors that help drive sales of Apple hardware.
"The iPod is only as good as the content on it," he said.
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109 Comments
With Radiohead putting out their own album and Apple now courting artist directly, you can finally start seeing the unraveling of the present day recording industry. Apple has a chance to become the new record industry but if artist go all the way themselves then even Apple's days are numbered in the music biz.
That's right, and the content on it can be downloaded for free.
They just don't get it. Could someone please sound the death knell for the major labels so everybody can move on with their life without having to deal with these miserable jerks every fcuking day?
/rant
Does he remember the ipod was a huge success BEFORE video came to it?
I still don't get how they can complain that Apple is giving them a new revenue stream that exists only because of Apple and their ipod.
Does he remember the ipod was a huge success BEFORE video came to it?
I still don't get how they can complain that Apple is giving them a new revenue stream that exists only because of Apple and their ipod.
Are you shittin' me? They're thinking about all the money they *could've* made had they been smart enough (and possessed the technological prowess) to come up with Apple's business model themselves. They are friggin' envious to death of Apple/iTunes/iPod. The problem is, because the business model is already out there for scrutiny, they get the impression that maybe they COULD pull it off themselves. More likely than not they're wrong, but that won't stop any greedy bastard from trying.