Universal vs Apple: Who will blink? [updated]


New York Times reports that Universal Music Group notified Apple last week that it won't renew its annual contract to sell music through theiTunes Store.

However, a later report from Forbes states unequivocally that Universal will renew.

"Their music is still on iTunes, and their not re-signing is just not true," said Apple spokesman Tom Neumayr.

"There's some feeling among some music labels and some executives that Apple, because it's so dominant with iTunes, has gained a disproportionate power in the equation," said Susan Kevorkian, an analyst with market researcher IDC.

Universal is said to be seeking a month-by-month agreement under which it could offer exclusive-content deals to resellers other than iTunes.

Editor's note: Universal's making a stand before Apple becomes the No 1 music retailer.

Here's hoping the label(s) go down in flames...

What's your take?