Warner Music Considering Not Renewing Long-Term iTunes Contract

Warner Music Group may be the latest content provider to become increasingly restless with Apple's pricing terms according to The Washington Post.

While the iTunes store undoubtedly saved a bleeding music industry, the same can not be said of TV and Movie content. One television studio has gone as far as to pull its content (NBC Universal). The Washington Post states that the difference lies in how TV has many more distribution outlets, whereas music had only 2 when iTunes came.

However, now that music labels have broadened their distribution (example), even music companies appear to be drifting away from iTunes reliance. While none have outright pulled their music, Universal Music Group did not renew its long-term contract to sell songs on iTunes, pursuing rather a more flexible month-to-month option. The article indicates that Warner Music Group is also considering such a move, though no decision has been made.

Still, iTunes represents a major player in music sales. According to the latest numbers, iTunes is the 3rd largest music retailer in the U.S.

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