snapshot 8/31/07

NBC Universal ends contract with iTunes
http://news.yahoo.com/s/nm/20070831/tc_nm/apple_nbc_dc_2
NBC Universal has decided not to renew its contract to sell television shows on iTunes, becoming the second major media company to challenge Apple Inc's (AAPL.O) dominance in digital entertainment. NBC Universal had demanded more control over pricing for digital downloads of its shows, which include "Battlestar Gallactica" and "Heroes," said a source familiar with the matter on Friday, confirming a New York Times report.

http://ilounge.com/index.php/news/comments/apple-responds-to-nbc-wont-offer-upcoming-fall-season-shows/
Apple has announced that they will not be offering NBC television shows for the upcoming season on iTunes. In the announcement, Apple revealed that NBC wanted it to pay more than double the wholesale price for each episode, a move that would have resulted in the retail price of each episode increasing from $1.99 per episode to an eye-popping $4.99 per episode. Apple also noted that ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.


Amazon.com to launch music service in September: report
Amazon.com Inc has tentatively set a mid-September target for the launch of its music service, the New York Post reported in its online edition on Friday, citing sources familiar with the situation. T he store will offer songs in the MP3 format and give consumers an alternative to Apple Inc's iTunes, the report said.


APPLE, LABELS PITCH 'TONES
Apple is in the midst of developing an offering with the major music labels to sell ringers to iPhone users via iTunes, multiple sources familiar with the situation said. The service - expected to be unveiled when Apple announces its new lineup of iPods - would allow users to turn almost any song sold through iTunes into a ringtone for an additional fee. The exact price was unclear.


SpiralFrog Licenses Universal Music Publishing
SpiralFrog, Inc., the free ad-supported Web-based music service, today announced it has entered into agreements with Universal Music Canada and Universal Music Publishing Group, which will allow music from Canada's leading music company and the world's largest music publisher, to be utilized on its service. Publishing agreements allow SpiralFrog use of the underlying musical compositions. Music publishers control the rights to melodies and song lyrics and make their money licensing them. While SpiralFrog had previously licensed the catalog of UMG Recordings in the United States and Canada, these new agreements grant crucial rights from the world’s largest music publisher.


Music dancing in September
September will be a big month for new albums: Kenny Chesney, Kanye West, 50 Cent, James Blunt, KT Tunstall, Babyface, Barry Manilow (more cover songs), Rascal Flatts, Foo Fighters, Melissa Etheridge, Iron & Wine and Steve Earle.


Downward Pricing Pressure From Amazon?
Earlier this year, Berry Ritholtz argued -- based on some info from an industry insider -- that the $9.99 iTunes album price was helping to drive down the price of physical CDs at Amazon.com and other retailers. But I'm starting to wonder if the reverse will happen -- that cheap CD prices at Amazon will result in downward pressure on the iTunes album price, at least for older catalog material.Yesterday, I received an e-mail from Amazon touting its latest music promotion: 899 CDs priced at $8.99. While I'm not about to look up iTunes prices for all 899, I did a quick check of the 24 albums on the Amazon.com landing page for this promotion and found that of the 19 albums that are available at iTunes (no AC-DC, minimal Bob Seger!), only two of them are less expensive as downloads. The $8.99 CD price is cheaper for all the others.


Earnings: Vivendi Up As Music Downloads Double, Games Grow 91.9 Percent
Digital music sales from the Universal Music Group, the world’s largest label, almost doubled (at constant currency rate) but the group’s earnings fell EUR 75 million ($102.2 million) from the same period last year to EUR 220 million ($299.8 million). Universal reckoned it “significantly outperformed its competitors on an operating basis” in a difficult market.