As Apple unveiled its iPhone on Friday, Steve Jobs and co. over the weekend were handed a fresh headache. Universal Music Group, the biggest contributor to Apple's iTunes, will not be renewing its
annual contract to sell music through the media store.
Instead, if the two parties cannot agree on pricing and other terms, UMG wants to market its music to Apple at will, which
would allow the record label to remove songs from iTunes on short notice, giving it far more control in dealing with distributors like Apple. The electronics giant and Big Music have had a tenuous
relationship, as Apple is said to want a move away from digital rights management software, making it easier for users to illegally trade and copy music.
According to recent figures
from NPD Group, Apple's iTunes now accounts for some 10% of music sales in the U.S and is the one part of the music business that's showing growth. Some speculate that UMG is exploring more lucrative
relationships with other distributors. Others believe Big Music could be following Big Media in becoming its own distributor via the Web.
Read the whole story at The New York Times »