• by Wendy Davis , Staff Writer @wendyndavis, July 2, 2007

Universal Music Group might not re-up with Apple's iTunes, according to press reports. Instead of signing another two-year contract allowing iTunes to sell Universal tracks for 99 cents each, the music company whose roster includes U2 and Amy Winehouse, apparently is mulling forging a shorter-term deal with Apple.

Why would Universal consider this step? The Wall Street Journal speculates that the music company wants the option of offering exclusive digital downloads to other online stores. Additionally, Apple's new iPhone might have prompted Universal to reconsider its relationship with the company. That's because, according to the Journal, Universal and other record labels are afraid that Apple might come to command too large a share of the mobile download market.

Still, the fact that Universal is mulling the move smacks of greed -- as well as a doomed desire to control digital distribution of music. Online "exclusives" aren't likely to last long, especially not if the same content exists in CDs or forms that people will find a way to share.

But even if Universal is thinking about eschewing a long-term contract, it won't necessarily do so. Certainly, the company has much to lose by shutting out Apple, which currently dominates online music sales. In fact, the Journal article notes that Apple has recently become the third most popular record seller, trailing only Wal-Mart and Best Buy. Whether Universal will risk losing this outlet simply to try to exert tighter control over its digital content remains to be seen.