US Investigating Apple Over iTunes

[Paul Daniel Ash]

Is Apple pushing record companies around? The US Justice Department thinks it may be, and is starting preliminary inquiries about Apple’s business practices around iTunes, according to a report in the New York Times this morning. Sources, including record company executives interviewed by the Feds, say that the investigation is in response to numerous reports that Apple is throwing its weight around. Allegedly, Apple pressured two top record labels to not participate in Amazon's "MP3 Daily Deal."

According to a report in AppleInsider today, a survey has shown that 70% of the digital music downloads in the US are done over iTunes. The survey done by NPD showed that Amazon was far behind Apple in second place with a mere 12% of downloads, a position it shared with Wal-mart, which also accounts for 12%. NPD also found that digital downloads make up 40% of the overall market, 5% more than last year. So Apple and iTunes are utterly dominating a fast-growing market, and reports have increased in recent years that the company is dictating terms to suppliers. Record labels have long wanted different pricing for songs and albums, for example, but Apple has been able to hold firm on its insistence on a fairly rigid price structure, with almost all songs still going for 99 cents.

A music industry executive told BusinessWeek anonymously that Apple threatened top record companies to keep them from participating in Amazon’s MP3 Daily Deal, saying that their music would not be promoted as much on iTunes if they did. Amazon program offers downloads at a lower price but subsidizes the labels who participate, paying them the same as they would have gotten if the tracks sold at the regular price. Cathy Halgas Nevins, a spokeswoman for EMusic.com, confirmed to BusinessWeek that she had been contacted by the DoJ.

Apple became the biggest music retailer in the US two years ago, taking that title away from Wal-Mart. The NPD survey found that 28% of all music purchased in the US in the first quarter of this year was downloaded from iTunes. Two years ago during the same period, the iTunes market share was 19%.

[battlecrushr]

lol pic just made me lmao

[Zeal]

Steve Jobs weighs 95 pounds hes a twing.

This picture makes it seem hes all grrr

[extremzocker]

Apple thinks they can push everyone around. time for the officials to sort it out!

[mallenass]

and the sjobs will threaten the feds. you investigate me? NO MUSIC FOR YOU!!!

[daxter146]

That other 30% actually is music being pirated lol

[cypherpunk]

I think they'll find most of the time it's the music companies who've been pushing Apple around.

[Nickaroni22]

I didn't know people paid for music.

[Tylervalo]

Without Apple there probably wouldn't be a digital music market right now. Steve talked everyone into allowing people to pay to download music.

[nautical79]

Steve jobs is Apple? or why the face of him on the cover, i know that theres a council that make the decisions of what to do. i feel a little simpaty for the guy thats why im on his deffense. Any how the law its the law, and they must proceed with the investigations. One thing its for sure if itunes goes down the price per song can go up. in case that you pay for a song. not like Nickaroni22

[wolverinemarky]

and the sjobs will threaten the feds. you investigate me? NO MUSIC FOR YOU!!!

lol that sounds like steve

[mortopher]

As opposed to pirating software as i am, i have no issues at all with pirating music. Ive long felt (even before the advent of file sharing n all) that musicians should be touring more anf more if theyre wanting more money.

Prime example, phis had a 4 day festival here for new years and by going foe two shows i dropped close to 300 when all was said and done ( paid for a friend to come along). Ill gladly pay top dollar to see live talent.

That being said, i still buy album that ithink are actually good. I bought vampire weekends Contra off itunes a moth or so go and two days later bought their first album off itunes as well ecause i was that impressed by it.

[George Lopez]

Apple is a madafaking biach

[cpkirkley]

That other 30% actually is music being pirated lol

+1

Truth.

[Vissionary]

lol what a terrible picture.

[giancarlo]

It's the APPLE MAFIA offering protection to record execs...."Push iTunes and i'll bump you 30% of sales instead of the $.01 per CD that Amazon pays you."

And I totally agree with the fact that artist make money from events. If the artist doesn't do events, or appearances or concerts then they don't make any money. The artist doesn't make money off of CD sales, they just care about the sales made so the albums popularity can grow. Why do you think there were such gifted artist out there that just dissapeared, CD sales don't be the $100,000 mortgage NAGGA!

[sziklassy]

Damn that image takes the cake fr worst photoshop job I have ever seen.

[Zeal]

That other 30% actually is music being pirated lol

Who buys music?


Seriously -.-

[sziklassy]

iTunes is what made Apple so successful in today's day and age (paired with ipods/iphones of course). It is not surprising that they want to take control of the market and keep it on a short leash. It is clear that they are becoming that which they claimed they would never be. What greed/money can do...

[awesomeSlayer]

This image has been crappy photoshopped.