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Vivendi Universal - Apple: iTunes Contract is Indecent

By linathael. Original by Lionel - 26/09/2007 09:04:01 CEST - Category: iPod - Source: Reuters
After NBC leaving the iTunes Store, Vivendi, via its Chief Executive Jean-Bernard Levy, condemned the contract terms between its music division, Universal Music Group (UMG) and Apple Inc., even naming it "indecent":
"The split between Apple and (music) producers is indecent ... Our contracts give too good a share to Apple,"
In other words Vivendi thinks that 0.70 euro out of 0.99 euro price per track is not enough (more than 75%!), while Apple is responsible for promoting and distributing the digital music store, and of course maintaining the hardware and software infrastructure.
Vivendi is probably openly pressuring Apple to renegotiate iTunes contract terms. Of course, Apple will most likely try to keep Vivendi catalog on its iTunes Store, knowing that the same catalog is currently available as a DRM-free offer from almost all iTunes competitors. Behind the scene, Vivendi expects to regain control over prices for its catalog, aiming to increase the cost of popular singles or hits, while decreasing the price of old albums.
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