New York - In a bid to gain leverage with Apple on more flexible song pricing, major record label Universal Music Group has told the company it will not renew a long-term contract to provide its artists' songs for sale on the iTunes Store, The New York Times reported, citing "executives briefed on the matter."

Universal will instead opt for an arrangement that will allow it to potentially remove its catalog from the iTunes Store at whim, should the companies fail to reach an agreement on pricing.

Some record industry executives have said they are unhappy to be locked into the retailer's rigid $0.99 per song/$9.99 per album pricing structure, and would like to be able to sell popular songs for both higher and lower prices at given times, based on demand.

Apple recently became the third-largest music retailer overall, behind Wal-Mart and Best Buy, and the iTunes Store accounts for 76% of all digital music sales.

Digital sales made up 15% of worldwide revenue during the first quarter for Universal, whose releases account for one of every three albums sold in the U.S., according to Nielsen SoundScan.

Related Links:
http://www.nytimes.com/2007/07/02/business/media/02universal.html

http://www.umusic.com