Apple gets cold shoulder from Universal
This is according to reports from Reuters and the New York Times which suggest that the month-to-month agreement leaves the door open for exclusive deals with other services.
Reuters reports that Universal “will continue to sell music and videos of artists including 50 Cent, Mariah Carey and Black Eyed Peas via iTunes on a month-to-month basis, rather than be locked in to a two-year agreement Apple had proposed, the source said.”
Apple has a firm grip on the digital music market, controlling around 70% of the online music market in the US. Its iPod is also the most successful digital music player in history.
This dominant position may however have cost it a long term agreement with Universal, and Reuters report that “some music executives have privately expressed frustration that Apple's dominant position may have hampered growth of the fledgling digital music market by keeping users locked within the Apple system.”
Apple launched the much hyped iPhone last week, punted as a true multimedia device which is sure to shake up the high end mobile phone market.
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