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NY Post: Record Labels May Bow to Apple’s Fixed iTMS Pricing
Sunday, April 23rd, 2006 at 3:00 PM - by Bryan Chaffin
Negotiations between Apple Computer and the world's major record labels have grown even more tense in recent weeks, according to a report from the New York Post, but the net result of that tension may be that record labels abandon their demand to have variable pricing at the iTunes Music Store.
Without citing its sources, the Post said that with licensing deals between Apple and the labels set to expire starting in the next two months, the labels are no longer confident that they can change Apple CEO Steve Jobs' mind on the issue.
The labels have been wanting to be able to charge more for newer songs, while theoretically charging less for older songs. Apple has heretofore resisted this, with Mr. Jobs having stated that he believes its important from a marketing standpoint to have all singles priced at US$.99.
The article said that Universal, Warner Music, SonyBMG and EMI North America are all in various stages of renegotiating their deals.
The Post also reported that some unnamed record execs have "mentioned the possibility" that they could pull their tracks from the iTunes Music Store, the world's largest online music download service with more than 70% market share. Those same sources said that the labels and Apple are more likely to continue to do business without a contract as they continue negotiations.
As recently as November 16th, 2005, EMI CEO Alain Levy told the Wall Street Journal that variable (flexible) pricing at the iTMS was "imminent."
Apple's policy is to not comment on unannounced products, or future pricing.
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