Is Universal Filing For Separation or Divorce From iTunes?

Jul 8

by Tamera H. BennettJuly 8, 2007

Billboard reports Universal Music Group (UMG) did not renew its year-to-year contract with iTunes for digital downloads of the UMG catalog, but has decided to move forward with an at-will agreement. Based on the Billboard report, UMG can pull their catalog from iTunes at any time. The flip-side of an at-will agreement is that iTunes could also drop the UMG catalog.

What does this change in contract status mean to the consumer? Probably not a whole lot. UMG will not take their catalog out of the digital "bins" so to speak. Record labels know digital downloads are driving records sales rather than purchases of CD's. Consumers will still have the ability to find their favorite UMG artists for legit downloads.

What does this change in the contract status signal to the music industry? UMG is jockeying to renegotiate the current structure of royalty payments for digital downloads. Currently, for each .99 download paid to iTunes, iTunes retains .29 and pays the record label the remaining .70. The record label then pays the artist, producer and music publisher.

If UMG and other labels get a sweeter deal with iTunes, will iTunes up their prices to consumers or simply cut their own profit?

CopyrightDigital/InternetMusicMusic Business

Tamera H. Bennett

Tamera H. Bennett is a wife, mom, lawyer, mediator, blogger, podcaster, and legal writer. For two decades she’s helped clients protect what they create by practicing trademark, copyright and entertainment law in Texas and Tennessee.

Tamera has co-hosted more than 85 episodes of the Entertainment Law Update Podcast since 2009. And, she’s been honored to write for BILLBOARD magazine and the TEXAS LAWYER.

In the summer of 2015, Tamera backpacked 100 miles over 10 days with her son's Boy Scout Troop. Tamera walked her first half-marathon in 2012 and walked the Cowtown Half Marathon in February 2016 and February 2017 with a PR each time. You can visit Tamera’s blog at createprotect.com and follow her on Twitter @tamerabennett.

http://www.tbennettlaw.com

Tamera Bennett

Meet lawyer Tamera Bennett, your trusted advocate for trademark, copyright, and music law in the Dallas/Fort Worth area. Tamera gets it when her clients pour their heart and soul into their projects…she is just as passionate about using the law to protect her clients' intellectual property rights.

Tamera’s office might be in a “small town,” but her 25 years’ of legal experience allows her to counsel clients on deals in all the “big” cities.

Meet Tamera Bennett

Gordon Firemark

Gordon Firemark is an attorney whose practice is devoted to the representation of artists, writers, producers and directors in the fields of theater, film, television,and music. He is also the publisher of Entertainment Law Update., a newsletter for artists and professionals in the entertainment industries. His practice also covers intellectual property, cyberspace, new media and business/corporate matters for clients in the entertainment industry.

Meet Gordon Firemark

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