This is why the music industry is dying a slow death

Universal Music Group, the world’s largest music corporation, has decided not to renew its annual contract with Apple for selling music through iTunes Music Store. Without the contract, iTunes will lose a large number of tracks and maybe consumers too. However, Universal will be the biggest loser. Why? Online music sales are on the rise. Itunes has almost the entire legal market.

Universal Music said that it will sell music through iTunes at will - which means consumers can still purchase tracks - but Universal will remove its tracks from the store on short notices if both parties do not agree on pricing or other terms. The time is a little odd. Right after people bought their new Iphone.

The sticking point? That's right, UMG wants to raise prices. Or charge less, according to the New York Times.
link: http://www.nytimes.com/2007/07/02/business/media/02universal.html?ei=5065&en=1b940de192f6dfd7&ex=1184040000&partner=MYWAY&pagewanted=print

"Edgar Bronfman Jr., the chairman of Warner Music Group, reinforced that idea at a recent investor conference, saying “we believe that not every song, not every artist, not every album, is created equal.”

The bottom line: Apple just announced DRM-free song catalog where if you buy from ITunes at a higher price, then you can play the song on an Ipod, or a Zune, or your cell phone. UMG refuses to sign on. That would satisfy UMG, unless they want prices to be higher than 1.49 a song.