Universal Music Declines iTunes Contract

Universal Music Group is the world’s largest music recording company by its market share. The company’s catalog is huge, including Eminem, 50 Cent and Sting. The company will take its entire catalog off from iTunes immediately after contract gets finished.

This move ill not have any impact immediately, but later Universal Music Group is not going to sign long term contracts anymore. The company is going to provide parts of its catalog to different music retailers exclusively.

This move is part of war between Apple and music recording labels. iTunes has become the third biggest music retailer behind Wal-Mart Stores and Best Buy. Now the retailer doesn’t give any opportunity to recording labels to set their on rules on its store. The recording labels can’t even set music price sold at the store.

Moreover, music recording labels blame iTunes for making digital music downloads so popular that customers have almost stopped buying CDs. Market analysts still don’t think that this is the reason of CD sales decreased, but music recording labels still are feeling uncomfortable. by Ruzan Harutyunyan for HULIQ