Wil universal get what they want?.. Apple is not totally powerless in this potential negotiation but i doubt steve has the power to laugh in their faces. Apple does not make music, it sells it. A seller can hardly laugh in the face of the producer of goods (or the gatekeeper of those goods). Want proof?.. walmart vs apple. Apple makes ipods.. Walmart refused to deal with apple the way apple wanted.. guess who lost in that battle.. walmart of course.. they are merely a seller, apple is the gatekeeper of ipods. The same is with the music studios.. apple is a seller, music companies are the gatekeepers. They can dictate who can and can't sell their music and while every corporation is motivated by profits.. they can always take their music and go home. Sure they lose but so does apple or they can make their music exclusively available only on microsoft service. You might not buy the music but you aren't 300 miliion americans. I gurantee apple does not want to be sitting by idly watching microsoft steal a market they grew. Naw, steve is not laughing in anyone's face.
Any record company is free to make their music exclusively available on a service that is incompatible with 75% of the mp3 players owned by those 300 million Americans but I don't think many will.