In August, Apple Inc. publicly denounced
NBC Universal's request for a "dramatic price increase" in its TV
content which it attributed to the company's split from iTunes.
Now Vivendi's Universal Music Group (UMG), which holds a 20 percent interest in
NBC Universal, has some harsh
words of its own for Apple.
Vivendi Chief Executive Jean-Bernard Levy spoke to reporters at a gathering of
French media journalists. "The split between Apple and (music) producers
is indecent ... Our contracts give too good a share to Apple," said Levy.
UMG, the world's largest record company, gets approximately
70 cents out of iTunes 99 cent download price, or €0.70 of the €0.99 download
price in Europe.
Vivendi's Levy also stated that he would like to see a differentiated pricing
system, which would give record companies flexibility to make hot releases have
a higher premium in costs, with older classic content being available at lower
Vivendi currently has a month-to-month contract with iTunes, after it declined
to renew its former year-long contract. Vivendi has not publicly stated whether
it will ditch iTunes entirely, but it is in talks with other distributors.
The company has moved a large amount of its music library onto the ad-sponsored
free download service, SpiralFrog, however. SpiralFrog, which just
officially launched this month, offers DRM protected tracks at no price,
possibly undercutting the sales of iTunes tracks which carry Apple's
proprietary DRM format.
Apple has not publicly responded to Vivendi UMG's comments. UMG's content
is currently still available for download at iTunes.
quote: I pay $200 - $350 for a single pair of designer jeans because those are what i like
quote: Nope. Love my True Religions, Diesels, Rock & Republics, William Rast.Sorry, Im a fashion freak i guess.
quote: What I prefer to spend my money is doesnt judge the type of person that I am.
quote: Polynikes is right - your spending habits are atypical - most people making purchases are facing limited economic resources and will consider more the value of a purchase. You give off the impression that you will pay whatever price is asked. I realize there are some people like that, but most people aren't. Therefore it is not surprising that you don't agree with price-vs-quantity.
quote: Also, make sure you realize that when it comes to digital age - there is no such thing as supply and demand.
quote: Jobs presents himself as a folk hero bravely fighting record company attempts to raise prices. But that is pure PR spin. Jobs is optimizing Apple's profit at the expense of the record companies. The consumer is no more important to him as they are to other companies.
quote: I think you've bought into Apple's PR spin / reality distortion field.
quote: There is basically flat rate pricing for cds, so why should it be different for tracks?
quote: It would be damn cool for Apple to start producing some of its own records... 50 cents to Apple, 50 cents to the artists. Just cut the money grubbing middle man right out of the equation
quote: Isn't part of apples agreement with apple records that apple computer can not enter into the music production industry?
quote: And to promote they could have some random Apple vs (insert big record label here) commercials that would most likely make many people laugh and be wildly popular.
quote: It would be damn cool for Apple to start producing some of its own records... 50 cents to Apple, 50 cents to the artists. Just cut the money grubbing middle man right out of the equation.
quote: ad-sponsored web sites that provide the same services as Apple, but basically for free. In other words, 100% of the money from your music purchase
quote: I don't see how anyone can get rich off of ad revenue, rather than a dollar per download.
quote: iTunes is going to have to become more flexible and more amenable
quote: You can make the case that they aren't losing money because you wouldn't have bought it anyway 7 ways to sunday...but the fact is, you stole potential profits
quote: Simply put, by your statement, anyone who doesn't buy a cd or download is actually stealing from the record company.
quote: I think i see your reasoning, but it still doesn't seem right to me. its only potential if there was any chance that the person was going to ever purchase it. With a person like me, who will not purhcase music for my own use (i will buy a cd for other people, but not for me) because they don't see why they should (you can listen to any song for free on the radio, you just might need to call in a request for a specific one), there is no potential income. It doesn't matter if they end up with a copy of it or not. They still would have never given any money to the company.