The world’s leading record company has released a statement on the matter, indicating to Macworld UK that “Universal Music Group has decided not to renew its long-term agreement with Apple’s iTunes service. Universal Music Group will now market its music on iTunes under the same terms as it does with other partners. “
This marks the end of tough negotiations between the two firms. The previous three-year agreement between the two parties ended last year, when a temporary agreement was agreed with a periodicity of one year.
While Universal represents the firm that is found in one in three published jobs, Apple’s iTunes service is the third-largest music sales channel in the US.
iTunes has also become synonymous with online music services, with an estimated $ 200 million in annual revenue for Universal.
However, it appears that Universal wants to offer some of the music of some groups exclusively through other online music services, in an attempt to cut Apple’s control over e-business.
This could mean that the music of some key artists might not be available on the Apple service.
The new agreement proposes a monthly review. The failure between the two firms could be a consequence of Universal’s continued demands on pricing flexibility, as well as their disagreement over Apple’s iTunes Plus service.