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News   - 05/02/2006

Apple Renews ITunes Contracts With 4 Record Companies: an Apple victory, says Bloomberg

These are really groundbreaking news in the digital music arena:

Apple Computer Inc., renewed contracts with the four largest record companies to continue offering songs at 99 cents each through the iTunes music store.

EMI Group Plc, Sony BMG Music Entertainment, Vivendi SA's Universal Music Group and Warner Music Group agreed to continue selling their music through iTunes, Apple spokeswoman Natalie Kerris said in an e-mailed statement. She declined to provide details on the length or other terms of the contracts.

The deals are a victory for Apple Chief Executive Officer Steve Jobs, who's been fighting music company attempts to change pricing and charge more for some songs. Warner CEO Edgar Bronfman Jr. in September said demand should dictate prices. Jobs said some record companies were being ``greedy'' and that higher music prices might prompt users to illegally download songs.

``This is a very big win for Apple,'' Michael Gartenberg, an analyst at Jupiter Research in New York, said. ``It validates Apple's position that 99 cents is a sweet spot for songs.''


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Source: Bloomberg    
 
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