New York, NY (May 21, 2008) – This one came across the ether on Monday. According to a recent article in the NY Times, Apple is seeking to expand it’s mobile music reach before the presumed launch of its next generation of iPhone later this summer. However, according to the anonymous record label executives quoted in the story, negotiations are in their early stages and a deal is still a ways apart.
At issue for Apple are both ringtones and ringback tones; they want an expanded selection from record labels. Also on the table is the issue of wireless downloads. Labels are seeking a higher price for songs downloaded through the iTunes store directly to the phone when completed over-the-air. More on what this means to the consumer from author Saul Hansell:
…A label executive told me that the current negotiations, which only began a few weeks ago, may be the opportunity for the music companies to press Apple on some of their other longstanding requests. Top among them is the flexibility to set different prices on individual tracks. Right now, Apple sells all tracks for 99 cents. (Apple does allow for variable prices for full album downloads as well as various bundles. The labels love to add extra artwork, bonus cuts or other features that add a few bucks to the price of a digital album.)
Apple has loosened its pricing structure a little bit. It is selling some television shows from HBO at $2.99, above the $1.99 it sells all other TV shows for. The music labels would like to argue that this should open the door to their being able to charge more than 99 cents for hit songs and less for older works. But there’s no evidence that Apple sees it that way.
Universal Music Group is also pressing Apple about a subscription service package, an option Apple has thus far resisted. There's a pretty lively discussion after the jump.
