Engadget is reporting that Universal has refused to renew their contract with Apple. What does this mean? Potentially all Universal media, music, movies, and TV, could be yanked from iTunes in the not too distant future.But why? Why stop doing business with the 3rd largest retailer for music? Simple, greed. On both sides of the isle.
Universal, like all media companies, thinks consumers are criminals by default. They think that the consumer will jump at every chance to pirate or do something illegal with something they own, be it music, movies, carpeting, dairy products, whatever. So, Universal is a staunch advocate of DRM. Oh yeah, they also think that every portable media player manufacturer should give them money (or as they call them, royalties) to offset their "theoretical" losses to piracy that these same devices are "helping support." I know, it doesn't make any sense to me either.
Apple, unlike most software companies, is big enough to be able to go toe to toe with Universal. So they do. Universal wants songs to cost more, Apple says no. Apple doens't want to fork over money from it's iPhone sales. Universal wants them to. Apple knows it's got a strong card to play here because, frankly, no one else sells music, TV, and movies online as well as Apple does, and Universal will miss out on a good deal of income if they don't renew.
Universal really likes DRM though. And after EMI went DRM free, and their sales, at least for the time being, are up, that just grinds Universal until they get all hot and bothered. Problem is, who wins? I think Apple is pushing for Universal to go DRM free with their music. Universal says no.
Hopefully, everyone comes back to the sandbox with their toys and figures this out.
-Steve
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