Thursday, September 27, 2007
Vivendi Calls Apple iTunes Contract Terms "Indecent"
Posted by Suhit Gupta in "NEWS" @ 08:00 AM
"Vivendi condemned as "indecent" the contract terms between its Universal Music Group (UMG) unit and Apple Inc, the computer maker whose iTunes online store dominates the digital music market. Vivendi is one of many large media companies that are trying to challenge Apple's grip on the digital entertainment market and obtain more control over pricing. It said it was in talks with rival distributors. "The split between Apple and (music) producers is indecent ... Our contracts give too good a share to Apple," Vivendi Chief Executive Jean-Bernard Levy told reporters at a gathering on Monday organized by the association of media journalists in France. At present, UMG, the world's largest record company, gets 0.70 euro ($0.99) out of the 0.99 euro retail price charged by iTunes, Vivendi said. Among other things, Levy called for the remuneration of a new release to be higher than for a 30-year-old classic. "We should have a differentiated price system," he said."
On the one hand, it is great (IMHO) that companies are working to reduce Apple's grip on the music sales business. But then, why are they so upset if UMG is getting 70% of each track sold by iTunes? I guess they are clearly looking for a larger piece of that pie.
On the one hand, it is great (IMHO) that companies are working to reduce Apple's grip on the music sales business. But then, why are they so upset if UMG is getting 70% of each track sold by iTunes? I guess they are clearly looking for a larger piece of that pie.
