found this little tidbit and nothing more on drudge...



hmmm.

i wonder if this has anything to do with UMGs demands to get a percentage of every mp3 player sold?

It would make absolutely no sense to give a percentage of mp3 player sales to UMG. They're just trying to strong-arm the digital music world so that they are more in control.

I also suspect that they WILL renew the itunes contract.

I'm guessing it's because Universal wants DRM and Apple is pointing at EMI, who's gone DRM-free.

It's in record labels' interest to have their music available via as many outlets as possible. However, it's not in their interest to have iTunes put all other outlets out of business. It'll be interesting to see how this plays out.

Universal balks at Apple deal
Music Group will not renew iTunes contract
By VARIETY STAFF
In a move designed to undercut the growing music retail power of Apple Inc., Universal Music Group is set to notify the company that it will not renew a long-term contract to sell digital music downloads through the iTunes online store, according to a report in today's Wall Street Journal.

The move does not mean, however, that Universal will remove its catalog from iTunes immediately. Rather, the world's largest music company is expected to arrange a short-term sales agreement.

Though it is unlikely to have any major effects immediately, the change will give Universal more flexibility in its dealings with competitors to iTunes -- for instance, Universal could offer other digital retailers parts of its catalog exclusively.

The major record companies of late have been increasingly uncomfortable with Apple's growing clout in the music retail business, as consumers have shifted from buying physical CDs to digital downloads. Apple had no comment late Sunday.

Read the full article at:
http://www.variety.com/article/VR1117967939.html

Interesting, indeed.