Following on from my recent post regarding the probability that Apple are about to launch the new iPhone with 3G capabilities in June, it is reported that Apple are in negotiations with the main record labels. Apple has had problems convincing record labels to agree to a flat rate pricing system in past negotiations.
All individual tracks listed on iTunes sell for 79p with a reduced cost for a complete album and the occassional free track. This ‘one size fits all’ approach is both simple and very successful. But record labels have always wanted to sell current commercial hit singles for more and their back catalogue for less. Hitherto, Apple have won the day and record labels have had to play by the Apple rules.
But if, as expected, the new Apple iPhone comes with 3G capabilities, that opens up another can of worms that has had Apple CEO Steve Jobs and record label bosses around the negotiating table again, this time to agree on mobile delivery licensing deals; and this time according to The Guardian, it looks like Apple are prepared to listen.
Reports that the record labels may have the upperhand and Apple are prepared to negotiate on their terms, follows the announcement of a two-tier pricing plan to download HBO TV shows, earlier this year.
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