Despite progress, Apple and Music Biz still at odds


The music execs got their variable pricing, but they're still not happy. The New York Times reports on the ongoing wariness between Apple and the music biz. Through its considerable clout, Apple has collected most the cards in negotiations over the years. It's a bit of a double edged sword for the industry where it relinquishes control for sales. Not only does Apple hold as a hedge against piracy, iTunes also brings in customers who don't normally browse CD racks. Additionally, the iTunes model is a powerful marketing tool, introducing customers to new music that likely would never be purchased.

Apple recently traded the long-coveted flexible pricing for two of its own wishes. The recently announced DRM-free music, which satisfies the demands of customers and some regulators, and access to wireless downloads on the iPhone. Mobile music is likely to be a considerable revenue generator for all parties. not to mention a selling point for iPhones.

The sticking point of the story is a bit mundane, but illustrates that despite the apparent coming together, relationships are still tenuous. The details essentially are Sony wanted pricing to change after announced, but Jobs wanted a longer rollout. Apparently later this spring. The deal was finalized, apparently with Sony music boss Schmidt-Holz yielding on Christmas Eve.