Apple Demands Exclusive Music For iTunes

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Apple Demands Exclusive Music For iTunes

The Los Angeles Times is reporting that tech giant Apple is demanding exclusive music for purchase on its iTunes platform in order to block initial access to new songs on streaming services such as Beats Music and Spotify.

The Times writes:

Apple executives contend that on-demand music services have begun to cannibalize download sales, and its representatives are demanding the labels create a period reserved for digital purchasing.

Music industry insiders, who spoke on condition of anonymity for fear of reprisals from the industry's dominant retailer, said Apple's push for a new release window — similar to the one that some Hollywood studios impose for films newly released for home viewing — shows the Cupertino, Calif., tech giant is scrambling to retain its competitive advantage in an evolving digital music market.

The article goes on to state that Apple learned from the December 2013 release of Beyonce's self titled album as an iTunes exclusive. The record went on to be the fastest selling album in the iTunes store.

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Spotify's Chief Content Officer Ken Parks tells the Times "It's not a great strategy to try to dictate how people consume music when they're clearly asking for and in fact doing something different on a wide scale. It just doesn't work for anyone."

Mark Mulligan, a long time music industry analyst believes that streaming services may be impacting Apple's sales. He says "It's not that streaming is replacing downloads in a larger sense. What it is doing is going right after the spending of some of the most valuable download customers there are — and Apple's most valuable download customer."

Source: LA Times