Universal to Confront Apple With New Music Store

In an unexpected development, Universal Music plans to create a music-industry-owned online music store to take on Apple, according to a new report in BusinessWeek.

BusinessWeek has learned that [Universal chief Doug Morris] has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75% of the music sold in the U.S.

“Besides competing head-on with Apple Inc.’s music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft’s Zune media player and Sony’s PlayStation and by working with the wireless carriers.

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