« The future of the music industry | Main | Verizon rejects Hollywood’s call to aid piracy fight »

Why is Universal Music selling unlocked songs?

From the December issue of Wired magazine: The angry mogul. Universal's CEO Once Called iPod Users Thieves. Now He's Giving Songs Away. The most interesting part comes near the end:

When I suggest to Morris that the labels gave Jobs license to create what was in effect an Apple Walkman that played only Apple cassettes, it's Caraeff who answers. "Looking back, the best thing we could have done would have been to mandate one format," he says. So why didn't that happen? Morris is happy to field this one. "It never crossed anyone's mind!" he exclaims. "We were just grateful that someone was selling online. The problem is, he became a gatekeeper. We make a lot of money from him, and suddenly you're wearing golden handcuffs. We would hate to give up that income."

Those cuffs get tighter every day. This year, 22 percent of all music sold in the US will move through iTunes. "If iTunes gets up to 40 or 50 percent, they'll have too much power for anyone else to enter the business," says James McQuivey, who analyzes the digital music industry for Forrester Research. If the labels want out, they have two choices: Find a way to unseat the iPod or allow iTunes' competitors to sell unprotected files that can play on Apple's ubiquitous device.

February 2, 2008 at 11:13 PM in Music | Permalink | Comments (0) | Bookmark this entry on del.icio.us | blog comments on this post (0)

Comments

Post a comment

(Because of spam, comments are held for approval by JD. Please hit Post only once.)