Apple Pressuring Music Labels Over Participation in Amazon's 'Daily Deal' Program
Sources say that iTunes representatives have been urging labels to rethink their participation in the Amazon promotion and that they have backed up those warnings by withdrawing marketing support for certain releases featured as Daily Deals.
The report notes that the impetus for Apple's complaints came from the release of Mariah Carey's "Memoirs of an Imperfect Angel", released one day early by Amazon and priced at $5.99 as part of the Daily Deal program last September. For its part, Amazon has reportedly backtracked on the program by allowing labels to participate without requiring the one-day exclusive and thereby hopefully avoiding the wrath of Apple. Apple has apparently continued to complain, however, about the marketing agreements that are part of the Daily Deal program."They are . . . diverting their energy from 'let's make this machine better' to 'let's protect what we got,' " says a major-label executive who has been following the situation.
According to sources in the industry, the relationship between the labels, Apple, and Amazon remains "fluid", with some labels refusing to participate in the Daily Deal program while others have opted to take advantage of the publicity available through Amazon for releases for which Apple has not offered prominent publicity in the iTunes Store.Top Rated Comments
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iTunes representatives have been urging labels to rethink their participation in the Amazon promotion and that they have backed up those warnings by withdrawing marketing support for certain releases featured as Daily Deals.
Sounds like blackmail to me...But that's what they've got to do to have another insanely great day at Apple, Inc.! :P
It's called competition Apple, get over it. They seem to be losing it more and more everyday.
No kidding...
Is it just me or is Apple's strong arm tactics starting to bother other people as well?
No kidding...
Is it just me or is Apple's strong arm tactics starting to bother other people as well?
It's not just you....
The revolution always seems like a good idea at the time....
It's called competition Apple, get over it. They seem to be losing it more and more everyday.
It's not true competition. The labels are price discriminating against Apple to prop up Amazon MP3.
Yet, they want Apple to promote the same albums and artists on the iTunes Store. You can't blame them for wanting the same deal.
Universal Music Group in particular offers ridiculous prices to Amazon (and no Universal Music Group and NBC Universal are not the same company). I've bought all sorts of albums from their artists on Amazon MP3 for $5.99 and lower. The same albums are $9.99, $12.99 and some even $14.99-$17.99 on the iTunes Store. That's a huge difference.
It's all negotiating tactics. The media companies are like the mafia. You don't survive unless you have something to hold over someone's head.
"They are . . . diverting their energy from 'let's make this machine better' to 'let's protect what we got,' " says a major-label executive who has been following the situation.
Somewhat ironic, coming from an executive whose industry has been doing exactly that for decades. Anybody else remember the 80's "home taping is killing music" campaigns? Or how hard the majors fought against digital distribution? Or, even better, how those same majors are now looking to squeeze money out of broadcast radio? Pot, meet kettle.
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