Universal’s CEO Once Called iPod Users Thieves. Now He’s Giving Songs Away.



Wired

This year, 22 percent of all music sold in the US will move through iTunes. “If iTunes gets up to 40 or 50 percent, they’ll have too much power for anyone else to enter the business,” says James McQuivey, who analyzes the digital music industry for Forrester Research. If the labels want out, they have two choices: Find a way to unseat the iPod or allow iTunes’ competitors to sell unprotected files that can play on Apple’s ubiquitous device.

Total Music is designed to unify Apple’s competitors in what amounts to a coordinated attack on the iPod. The details are far from finalized, but in Morris’ conception a Total Music subscription would come pre-installed on devices like the Zune, the Sony PlayStation, or a mobile phone. Universal is well aware of the difficulty of convincing consumers to pay for music subscriptions, so Morris wants the devicemakers to pony up the cash themselves, either by shelling out for a six-month introductory offer or by assuming the cost forever. This would be money well spent, Morris argues, because it would help the Microsofts of the world eat into the iPod’s market share. He has already hammered out preliminary agreements with Warner and Sony BMG and has met with executives at Microsoft and several wireless carriers. If Morris is able to make Total Music a reality, he will once again have succeeded in bending the industry to his will — in this case, by using the combined catalogs of the major labels to help establish a true competitor to the iPod. After all, why buy an iPod if a Zune will give you songs for free?


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