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Licensing row mars iTunes launch
Franz Ferdinand, Basement Jaxx and The White Stripes are refusing to license their music to iTunes, causing a significant setback to Apple's new music download service just hours before it launches to a fanfare in Europe.

Apple will announce at a press conference that it is launching in the UK today, but it has just emerged that it has failed to secure agreements with a number of key independent record labels.

It means anyone going to iTunes will be unable to download Franz Ferdinand, The White Stripes and a host of other bands including So Solid Crew, Badly Drawn Boy, Cold Cut, Dizzee Rascal and Craig David.

They have refused to sign an agreement, labelling the terms Apple is trying to negotiate for the online service as "commercial suicide".

The boycott by independents in the UK and France means iTunes will be devoid of a significant proportion of UK and local European tracks.

Independent artists account for around a quarter of music sales in the UK and around 22% in Europe and enjoy a much higher profile than they do in the US.

The European launch of iTunes has already been delayed because of the complexities of agreeing royalties for each individual country.

While Apple is set to announce that it has secured online deals with the big five labels - Warner, Universal, BMG, Sony and EMI - it may only have limited independent offerings.

The labels have accused Apple of misusing its position as the dominant online music provider to squeeze unacceptable terms from smaller record labels.

A spokesman for record label trade body the Association of Independent Music confirmed that negotiations had collapsed.

"A lot of labels haven't been approached but where Apple has spoken to labels the terms on offer have been commercial suicide. ITunes in Europe will be a slightly empty service as a result."

Apple controls around 70% of the online music market through its successful US version of iTunes and runaway sales of its iPod player.

Independents accused Apple of trying to railroad smaller labels into signing licensing deals.

"This is just another example of a monopolistic American company trying to dictate terms," said a source at one leading independent who said Apple only sent out the paperwork for the contracts last Tuesday.

"Most independents have similar concerns. None of the key UK labels have signed and the situation is similar in France. Everyone's feeling fairly walked over."

Leading independent Beggars Banquet, which represents artists including Swell and The Tindersticks, said it was refusing to sign up to iTunes Europe, despite having agreed a deal with Apple in the US.

"We're big fans of iTunes but we need to make sure we get acceptable terms," said Simon Wheeler, the label's head of new media and chair of lobby group the Association of Independent Music.

"When Apple launched iTunes in America it said there was one deal for everyone but we soon found out that the majors were getting paid more, sometimes a lot more than us. We need to make sure that we get the correct terms in Europe."


At the launch of its new digital jukebox service, European market leader OD2 said its own research revealed that download activity was severely reduced when there was little or no local music.

"The international catalogue doesn't sell at all unless you have local content," said the OD2 chief executive, Charles Grimsdale.

Apple is hoping that the European launch will attract a significant number of new users. In the US, where iTunes launched a little over a year ago, it has already racked up sales of over 70 million tracks at an average price of 99 cents.

While the US legal download market has rocketed during the past 18 months, the appetite for such services in Europe has been less marked.

Peter Gabriel's OD2, which provides the technology behind online services for Coca-Cola and Virgin, has been the European download leader since it started in 1999.

However, last year it sold just 3 million songs, While this figure is expected to rise dramatically this year European download figures are expected to still lag their American rivals.

But Apple's failure to secure a deal with French independents could even see the country taken off the list of territories that are due to get the service first.

According to promotional material being sent to shops in time for today's launch, the first European territories to get the company's hotly awaited service will be the UK and Ireland and three Scandinavian countries Denmark, Finland and Norway.
 
Beatle mania

Anyone tried checking the Beatles singles. Oh, they are there, though not by them. :cool:
 
Very poor iTMS UK library

Having waited for iTMS UK for ages, I'm really disappointed by the library of music they've got on offer, especially compared to iTMS US. There's virtually nothing under Moby, there's no Sarah McLachan, if they do have the artist chances are they have maybe a "partial" album available.

I simply don't believe they have 700,000 tracks available for iTMS UK.

All in extremely disappointing, they better sort this out soon.
 
jamesbulman said:
Having waited for iTMS UK for ages, I'm really disappointed by the library of music they've got on offer, especially compared to iTMS US. There's virtually nothing under Moby, there's no Sarah McLachan, if they do have the artist chances are they have maybe a "partial" album available.

I simply don't believe they have 700,000 tracks available for iTMS UK.

All in extremely disappointing, they better sort this out soon.

I doubt that apple controls which songs will be available to you. Seems to me that the record labels are still controlling the availability of song selections, seeing how they are responsible for delivering the tracks. It would be interesting to do a side by side comparison and find out what labels are holding out on you in the UK.

I was hoping that the iTMS would break down the release date boundaries, along with the europe only tracks, but it looks like that will never happen. I do realize that some artist have released some of their unreleased in the US tracks on iTMS.

Oh well, maybe in a years time we will see some shifts in how music is distributed globally.
 
Partial Albums

theadz01 said:
partial albums?

why can't they use the full album? :mad:

Welcome to the wonderful world of iTMS and music licensing. If an artist has used music from someone else, or another artist appears with them on a track, licensing deals have to be struck with everyone who has an interest in that song. If someone says "No" for whatever reason, it cannot be sold.

I also have a feeling that some artists (or the labels) see offering the partial album as a compromise. If you buy all the songs from that album that they made availble, you'll end up paying more than you would if bought the entire album at the iTMS reduced album price. Or they view it as a teaser: get the tracks you like, and then maybe you'll actually buy the whole album on CD.

Don't get me wrong: I love iTMS. I was waiting for something like this for a long time, and I think Apple did it right. But the world of music licensing is one of those rings of hell that I do not want to deal with.
 
Dunepilot said:
What does that mean? Have they launched it now?

Yepp, (as if it were still news ;-) all launched. That is: UK/France/Germany (note that this is not the placement of the EM).

The artists displayed on different pages differ slightly from shop to shop. E.g. the French and German store have some local bands on display.
Just tried: I registered at the German Store and can't buy fromt he French :(
Mmmhh... some tracks are identical: Tri Yann (French, or rather brezhoneg band) is both in the de and fr store but Mano Solo is only at the fr while neither is at the uk store. ****ty. Will prolly stick to buying CDs which don't have this kind of silly limitations...
 
niar said:
my SHORT Indie want list:

Far East
Asylum Records
Ubiquity
Papa Records
Polydor
...
These aren't all indie labels. For instance, Polydor is an EMI label. And Asylum is part of Elektra, which is a Warner Bros. label.
 
QT

Dunepilot said:
Sorry for double-post. Does that refer to Quicktime? Or to iTunes (which would obviously include Quicktime).

QuickTime. Apple has nearly caught up with Windows Media Player, and surpassed Real. And it doesn't count ALL the ways people get QT--some are not tracked.

"A recent report on media player market share sales for client and enterprise applications by research firm Frost & Sullivan showed Apple moving into second position with 36.8 percent of the market, after running a distant third a few years ago. That puts Apple above Real, which controls 24.9 percent and not too far off from Microsoft and its share of 38.2 percent."

http://www.internetnews.com/infra/article.php/3366831
 
Surely it'll mostly be Mac users downloading WMP and Windows' users downloading QT? Be surprising if QT didn't overtake WMP for downloads.
 
caveman_uk said:
The indies are very important in the UK and Europe - especially among the young crowd - which I guess are Apple's principal target market. Although a lot of people here buy crap like Dido and Celine Dion, the folks likely to use ITMS are more likely to be interested in stuff on indie labels.

I still think the store should launch anyway but quickly sort out the problems with the indies as a priority.

Where the hell is the killers new album hot fuss....grrrrrrr :mad:
 
One gets used to rumor forums where a sense of consensus is just about impossible. This forum is quite different. The agreement over needing to sing Indie's on is pretty solid. The idea that they will slowly sign on shows itself occasionally, but, by the end of the forum, there is a sense that Apple is not offering as good a deal to the independents as to the others. If true, that arouses my sense of indignation!
 
The real story

Getting a sense from forum posters who don't know any inside info is one thing... but this seems to be the REAL story from the indie labels themselves:

http://macobserver.com/article/2004/06/16.1.shtml

Guess what? It sounds like it's the indies being greedy, not Apple! They want the option to raise song prices on us after 6-12 months if iTunes does well.

Hopefully they will see reason sooner rather than later. Apple hasn't let anyone--not even the big labels--raise iTunes prices.
 
OT: QT v. WMP. FYI. OK?

rhoughton said:
Surely it'll mostly be Mac users downloading WMP and Windows' users downloading QT? Be surprising if QT didn't overtake WMP for downloads.

By that logic, the numbers are especially amazing: if Apple hasn't quite overtaken MS, then slightly more Mac users are downloading WMP than Windows users are downloading QT! I don't think so :D

This isn't simply a download count. I don't know what defines "media player market share sales for client and enterprise applications" exactly, but it's not what you're assuming.
 
nagromme said:
Guess what? It sounds like it's the indies being greedy, not Apple! They want the option to raise song prices on us after 6-12 months if iTunes does well.

Hopefully they will see reason sooner rather than later. Apple hasn't let anyone--not even the big labels--raise iTunes prices.

Executives representing some of Europe's major independent labels confirmed to The Mac Observer Tuesday that while Apple refused a shorter contract length and no price review option, it apparently negotiated such a deal with Vivendi Universal SA's Universal Music, one of the world's largest record labels.

"It's our understanding Apple agreed to a two-year contract with Universal and agreed to re-visit royalty pricing every six months," one executive who asked not to be identified, told TMO. "Why couldn't they agree to a similar deal with us?"
Hopefully Apple will stop trying to screw the indie labels sooner rather than later.
 
Apple and independent lables

greg75 said:
Hopefully Apple will stop trying to screw the indie labels sooner rather than later.

Might just be the other way around.........
 
DMann said:
Might just be the other way around.........
Yes, the indie labels are trying to screw Apple by demanding the same terms that Apple offers the big labels :rolleyes:
 
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