>>I don't see where this gives Universal any more leverage with Apple. Universal could pull all their artists out of iTunes Music Store completely (becoming a Zune exclusive), and I don't think it would affect iPod sales noticeably. There might be a short-term hit due to bad publicity, but overall, I don't think that iTMS is much of a driver of iPod sales (it's the other way around).<<
psylent -
No, I agree. It doesn't give Universal any leverage. I was saying that Apple is more in a position of power than Microsoft, at least at this point, because the iTunes Music Store is actually generating real money for the record companies, including Universal.
Until Microsoft can show that they are a real competitor in this field, Apple will have the upper hand in these kinds of negotiations.
The mere fact that Microsoft had to agree to that kind of concession to get Universal on board demonstrates their lack of real power. I mean, Zune launches next week, and Universal only just now signed up. I'm sure Microsoft resisted the hardware fees as long as they could, but Universal forced their hand.
- Allen |
