 "Universal - iTunes Deal No Longer Exclusive")
Record label Universal Music, has reportedly declined to sign a long-term deal with Apple’s iTunes music store. Universal will continue to sell music and videos of some of its artists via iTunes on a month-to-month basis, rather than a two-year agreement, as Apple had proposed.
Universal had extended a previous two-year agreement by 12 months last summer, which expired last month.
The decision means Universal, owned by French media giant Vivendi can now offer its music to new partners and make exclusive deals with other services. Industry analysts say this move can potentially weaken Apple’s dominant hold on digital music retail.
Apple, which sells digital music via iTunes, has now overtaken Amazon.com to become the third largest retailer of music in the U.S. behind Wal-Mart Stores and Best Buy Co. Apple currently has more than 70 percent market share of all digital music sold in the United States.
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