Saturday, October 27, 2007

Labels Vs Apple

"Warner Music Group may follow Universal's lead and switch to a month-to-month contract with Apple when its current deal expires at year-end, according to The Washington Post. Warner is reportedly in talks with Sony and Universal to launch a subscription music service of its own that would compete directly with iTunes. The potential loss of another major record label, following Apple's highly publicized break-up with NBC Universal, could bode poorly for future iPod sales."

Why do the major label get it so wrong? They didn't embrace the future when digital was on the horizon. They couldn't come up with a unified system of selling music on line, so Napster just gave it away. Apple had that solution, people are comfortable with it and now they want to shun the only money they are making from digital. It becoming clearer as to why Madonna took her act to Live Nation. Major labels: look at the big picture, get beyond your short sightedness. iPods are not going away.

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