It has been reported that negotiations between Apple Computer Inc. and the big four record labels Sony BMG, EMI, Warner Music and Universal have reached breaking point with Apple refusing to change its stance on variable pricing. The argument is over iTunes' single price for all tracks (99c in U.S.). Record labels would prefer to set the prices per track themselves, upping the price of more popular music and lowering that of less popular. However, Steve Jobs believes it's too early to make such a change now.
Of course, threats that some record labels could pull their catalogue from iTunes have circulated but to Apple, at this stage, they are empty threat. iTunes has sold over 1 billion songs since it first launched and holds over three quarters of the music download market.
Source:
TechTree







