Apple Cuts Prices On Indie Releases: "Next Big Thing"

Trying to maintain a hipster appeal, Apple has started to sell so-called indie albums for as low as $5.99. The promotion is called "Next Big Thing", and deviates from Apple's previous flat-rate $9.99 concept for iTunes sales.

My guess is that the lower album prices are subsidized by the major labels that control these "indie" artists like Peter Bjorn And John (who I heard in The Gap a while back, some of you might remember.

Source: paidcontent.org

Universal Declines To Extend Contract With Apple's iTunes

Universal Music Group has reportedly declined to renew an annual contract with Apple and iTunes to sell songs and albums through the iTunes service. This is not a situation causing imminent threat of danger to iTunes, as the two will likely reach a short-term "at-will" agreement as they negotiate new terms for a new contract; rather, it will take some of the bargaining power away from Apple and allow Universal to remove songs from iTunes as it chooses.

The move is a response by one of the major labels to the growing clout (read: virtual monopoly) Apple has in online music sales. As consumers move away from physical CDs to buying digitally, the labels may continue in Universal's stead and force significant concessions from Apple in future contracts.

Conversely, Apple's iTunes is a major source of sales for labels whose physical sales continue to suffer. iTunes' storefront is a massive source of exposure, and since iPods are incompatible with other download services, labels who do not sell through iTunes will miss out greatly on sales through downloads. This bargaining chip of Apple's fails, however, if Universal and others move to DRM-free MP3 sales through other sites.

Bottom line: If labels are willing to give up DRM and make songs available through multiple outlets (just like brick-and-mortar record stores, what a novel idea!) they will not need to stick to Apple's way of doing things, and can start to take back the ability to shape their own business.

lala.com To Incorporate iTunes, Allowing Users To Store Music Online. . .Free!

Music trading service lala.com has announced a new web-based service that enables users to store their iTunes library online for free. This will allow users to play music from anywhere, share it with anyone (in theory, but what about DRM?) and purchase iTunes music anywhere, anytime.

In addition, lala will allow music fans to:

-- Host an iTunes or any other digital library and have them universally
accessible from any PC or Mac with an Internet connection.
-- Fill an iPod from the Web - a technological first in turning the iPod
into a connected, online device with loading from any
Internet-connected computer.
-- Share a library with friends or stream others' playlists.
-- Try before they buy and listen to full albums without limitations and
purchase music in either CD or digital form for iPods.
-- Future-proof their digital music purchases with the assurance that they
can get the physical CD for a small convenience fee starting at $2.99.

This might do me good as I make the transition from PC to Mac next week. I have all my tunes on an external hard drive that's formatted for PC, but I want to make it all readable (and writable) from my spankin' new Mac. With this new service, I can upload my library online, reformat my external drive, and then re-download it all onto the Mac-formatted drive so I can read and write to the disk. Awesome!

Apple partners with EMI to remove DRM from iTunes tracks

Apple is finally stepping up to remove DRM (Digital Rights Management) from its iTunes stronghold on music downloads and has EMI to thank for it.

EMI announced that it will begin offering its entire catalog free of DRM restrictions. iTunes will sell DRM-free tracks for $1.29 each in Apple's AAC format. All tracks will have higher bit rates and therefore better sound quality than current 99-cent downloads. But AAC-formatted songs might not easily be played on devices other than iPod, however, more retailers are expected to come out with DRM-free MP3 and WMA as well in an effort to catch up with iTunes. These developments will make songs compatible with almost any media player, making interoperability between virtually all devices a reality.

iPod & Windows Vista Not Getting Along, Cite Compatibility Issues

A Digital Music News article points out that Windows Vista and Apple iPod are already having difficulties early in the relationship. While one might think iPod is getting jealous of Vista's current attention-grabbing behavior, the fact is, they just might not be compatible, but are perhaps willing to work out the kinks.

I called one relationship counselor, and he had this to say: "Life and love are both four-letter words, and each has one syllable, but they are complex things." That means that anyone who wants Vista should wait for the Service Pack before upgrading, or your iTunes and your iPod could get all screwy.

Apple, Inc. (Computers) and Apple Corps (Records) Resolve Their Long Dispute

Apple Computer and Apple Records have been in a legal dispute over who the real "Apple" is for over 20 years. The most recent fracas involved Apple's iTunes, as Apple Computer agreed in 1991 that, in order to continue using its name, it would not enter the music business. The recent settlement replaces the 1991 agreement and gives Apple Computer ownership of all the trademarks related to "Apple" so it can continue using its name and logos in iTunes. In addition, Apple Computer will license certain of those trademarks back to Apple Corps for their continued use.

No word yet on when the Beatles will be available on iTunes.

iPod Shuffle: In Living Color (5 of them, to be exact)

Apple today announced that the world's most wearable digital music player is now available in colors: blue, pink, green, orange and the original silver.

"iPod shuffle is the world's most wearable digital music player," said Greg Joswiak, Apple's vice president of Worldwide iPod Product Marketing, in the press release. "Music fans can now choose iPod shuffle in one of five brilliant colors, or they can buy one of each."

You can buy it now, $79 each.

"I'll Have A Latte, And Download The New Tapes 'N Tapes": Starbucks May Introduce MP3 Downloads In Stores

According to a report from The Seattle Times, the ubiquitous Starbucks is likely to test MP3 downloading in some stores very soon.

Two weeks ago, Starbucks Chairman Howard Schultz hinted "Within 12 months, probably, you're going to be able to walk into a Starbucks and digitally be able to fill up your MP3 player with music."

While that statement is probably slightly lofty for all but those in the largest test markets, with iTunes giving Starbucks a space on the iTunes store, and Schultz's statement, MP3s and lattes are all but a certainty in the next couple of years.