Along with NBC, Vivendi is one of many large media companies that are trying to challenge Apple’s grip on the digital entertainment market and obtain more control over pricing, Reuters reports in a new article about the companies’ esteemed music publishing unit, Universal Music Group (UMG). The publisher said it was in talks with rival distributors.
“The split between Apple and (music) producers is indecent … Our contracts give too good a share to Apple,” Vivendi Chief Executive Jean-Bernard Levy told reporters at a gathering on Monday organized by the association of media journalists in France, Reuters said in the report.
UMG’s basic problem is that while they get 70 cents out of the 99 cents Apple charges consumers for each track, they want to be able to charge more for new music and less for older classics. We all know what that means, and it’s not 49 cents for old Aerosmith and $1.49 for new tracks. They’re going to want to charge more for just about everything, except for some token 79 cent loss leaders–at least that’s what we’re expecting to happen if UMG gets its way.
Vivendi Calls iTunes Contract ‘Indecent’ [Reuters via PCMag.com]