Vivendi CEO: iTunes Store Contract Terms "Indecent"

Authored by Mark Hefflinger on September 25, 2007 - 10:30am.

Paris - The head of Universal Music Group parent company Vivendi has called the contract terms for Apple's iTunes Store "indecent," and echoed calls from other major labels for variable pricing of songs from the retailer, Reuters reported.

"The split between Apple and (music) producers is indecent ... Our contracts give too good a share to Apple," Vivendi CEO Jean-Bernard Levy told reporters in France on Monday.

"We should have a differentiated price system," Levy added, referring to a desire to sell older catalog titles for less, and new releases for more, than the 99 cent standard at iTunes.

Universal, for whom digital sales has comprised 15% of its total music revenue this year, currently renews its contract with Apple on a monthly basis.

Levy declined to say whether Universal was considering removing its catalog from iTunes -- a move that NBC Universal recently made with its TV show library after it was unable to agree with Apple on issues including pricing.

Related Links:
http://tinyurl.com/2upptf (Reuters)

Published in DMW Daily, September 25, 2007

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Comments

yes, indecent because...

Submitted by muskratboy (not verified) on September 25, 2007 - 1:01pm.

... they don't get to charge $4 a song? WHO exactly is this being indecent to? OH, the RECORD COMPANIES. cause they want to charge whatever they WANT. got it. oh yes, i feel quite sympathetic to your cause, you poor record producers (actually, distributors... they don't make or produce anything). They DO realize this sort of argument makes them look like total douchebags, right? not like they need any help with that, but come on. but i'm sure they're REALLY interested in CUTTING prices on all those old tracks. I'm SURE that's what's this is about. so they can charge LESS than $0.99. SURE.