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http://www.macnn.com/articles/04/06/18/euroitunes.licensing/

EuroiTunes licensing may face backlash from Indies

updated 07:50 am EDT, Fri June 18, 2004

 

EuroiTunes licensing


Macworld UK says that Apple's attempt to make Europe's for the iTunes Music Store may backfire, as it did with MTV who pressured indie labels into reduced royalty payments: "Hundreds of independents across Europe refused the deal and insisted MTV stop playing their videos after the then-current agreement ended March 31. In March 2004, when faced with the threat of being unable to show videos representing such an important section of the music industry, MTV eventually relented, returned to the negotiating table and negotiated a collective agreement with Europe's indie labels."


by MacNN Staff

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  1. testudo

    Forum Regular

    Joined: Aug 2001

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    06/18, 09:11am | report spam | Reply |

    How about that!

    The indie labels are just as greedy a horde as the 'Big Five'.

    According to the MacObserver, Apple wanted, get this, a 3 year deal on pricing. And the indies wanted, get this, a 6-12 month review of prices, and basically an adjustable price such that if retail prices for CDs go up, the prices for online music should go up.

    I guess its just not the RIAA and Apple Corps who are looking for the almighty pound or Euro.

  1. Vanish

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    Joined: Apr 2001

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    06/18, 09:31am | report spam | Reply |

    Odd Comparison

    Pulling video rights is a leverage the EU Indies do not enjoy with Apple. That's Mtv's bread and butter, so the threat makes sense. This threat would mean nothing to Apple at all.

  1. phillymjs

    Fresh-Faced Recruit

    Joined: Jun 2000

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    06/18, 09:50am | report spam | Reply |

    I can't believe it!

    MTV Europe actually *gasp* plays VIDEOS?

    You mean it's not just an endless parade of Real World, Road Rules, Cribs, Punk'd and other horsesh*t shows all day long, like in the U.S.?

  1. JKT

    Professional Poster

    Joined: Jan 2002

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    06/18, 09:52am | report spam | Reply |

    Er... yes it would

    as pulling the right to distribute 20 to 30% of your music market would have a huge impact on your sales. I am not an atypical UK music listener and of the thirty or so groups I wanted to download with the launch of iTMS UK, two were (only partially, at that) represented. I've bought one album and one song so far and won't be buying any more until Apple signs up the indies. Why? Because there isn't anything else I want to buy available. It's that simple.

  1. McFarmer

    Junior Member

    Joined: Jun 2004

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    06/18, 09:54am | report spam | Reply |

    Good comparison

    While the Indies don't have much of a leverage with the iTMS in regards to videos, the DO have a leverage in regards to their music. What's the Euro iTMS worth without major Indie artists? Not all that much. Especially if those acts are available on Napster, OD2, and others.

    Missing them completely would hurt Apple as it IS iTMS bread and butter to provide music.

  1. rtamesis

    Dedicated MacNNer

    Joined: Jan 2000

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    06/18, 10:26am | report spam | Reply |

    Greed is good?

    Apple makes little money out of selling songs on the iTMS, while the music companies do. The iTMS actually helps the music companies and Indies combat piracy and make some money on the side. If the Indies want more money, then Apple will have to raise the prices of songs on iTMS in order to break even. That will prompt a howl of protest from iTMS customers and encourage them to go back to pirating music. The Indies will end up killing the goose that lays the golden egg with their greed.

  1. testudo

    Forum Regular

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    06/18, 10:47am | report spam | Reply |

    Re: good comparison

    And yet, when prices go up because the indies want more money, I'm sure it'll be the major labels that get the blame (and/or Apple).

  1. beeble

    Fresh-Faced Recruit

    Joined: Mar 2004

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    06/18, 11:44am | report spam | Reply |

    The Same deal

    Since the Indies got offered the same deal as the Big Labels, the MTV comparison is completely mute. MTV tried to offer them a substandard deal. Apple is treating them with the same respect they're giving the big end of town by offering them exactly the same contract and they've rebuffed, as another poster put it, the goose that lays the golden egg.

    It's not only greed, but hypocrisy to react this way when they get what they've been asking for, the same respect the big 5 get!

  1. Wutzo

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    06/18, 12:06pm | report spam | Reply |

    Stupid comparisson

    I don't understand the argument at all. The labels have to ovver something and after an agreement ends (like with MTV) or before an agreement is made (like with Apple) it is a very natural thing to NEGOTIATE. And negotiating consist of finding the middle in what you want and what the other party gives. Sometime it does not work.

    What is the point?

    Are the Indies are pissed? I assume not. Negotiation is a natural thing. Beeing pissed is childish.

  1. Clive

    Mac Enthusiast

    Joined: Jan 2001

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    06/18, 12:08pm | report spam | Reply |

    Get it right...

    Firstly, I think you’re all quoting second hand reports of what the indies wanted, well here's another second hand report:

    >According to the MacObserver...

    According to other sources the indies wouldn't sign a three year deal that would fix their prices, but at the same time allow Apple to raise their price to the public.

    So who's being greedy now?

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