Citing industry sources, HypeBot claims that Warner Music wants the iTunes operator to instate variable pricing at the track level, which would allow the record company to step outside the 'one price fits all' model and bill more than 99 cents for some of its hit singles.
For its part, Sony BMG is reportedly requesting a shift in relationship that would see its DRM-free tracks sold on iTunes through the same agency model it uses to sell tracks on Amazon, Rhapsody and other services. Under this model, iTunes would be relegated to the role of a delivering agent while the label acts as the seller.
"Sony BMG's concern is that competition will drive track prices lower and the agency model allows them to maintain complete control," the report says.
Meanwhile, Universal is said to be asking that Apple watermark each DRM-free track so that they could later be tied back to an individual's iTunes account should they turn up on file sharing networks. Other digital download stores are said to have agreed (or are close to agreeing) to the measure.
Rumors that the three major labels would join EMI in offering their catalogs unrestricted on iTunes have made the rounds in recent weeks. However, the most recent report from CNet News.com suggests an announcement ahead of the new year would be unlikely.
50 Comments
Hmm, Universal's and Warner's demands aren't so bad, but if Sony BMG has complete control then there would be no competition between online music retailers and assuming Apple offered the same concession to other labels, could be used for price fixing. T_T;
Sebastian
Hmm, Universal's and Warner's demands aren't so bad, but if Sony BMG has complete control then there would be no competition between online music retailers and assuming Apple offered the same concession to other labels, could be used for price fixing. T_T; Sebastian
I agree about Sony BMG and Price Fixing. The only way to drive down prices would be a boycott . I assume that it would also drive more people to pirate. NOT GOOD!
The record labels are in such a strong bargaining position ... If Apple doesn't play the way they wish I suppose they will what, go back to CDs in stores or sell through their own highly successful online systems? Sooner or later they will all be history. Bands must surely be thinking 'Different' these days when it comes to distribution for the future. Why pay a middle man (who has screwed you all along anyway) to do nothing but argue with Apple? Why not cut them out of the food chain and deal directly. Contracts do expire!
Variable pricing isn't such a bad deal of consumers. I've already picked up a couple of £3 albums off Amazon's new UK store.
Variable pricing isn't such a bad deal of consumers. I've already picked up a couple of £3 albums off Amazon's new UK store.
A lot of my purchases are spontaneous and one song at a time. Variable rate prices will keep me from impulse buying.