No deal for iTunes

Universal declines exclusive

02 July 07 - iTunes will have to live with the fact it hasn’t been able to sign an exclusive deal with Universal Music Group, the world's largest record company. The label giant has refused to renew a long-term contract with Apple to sell music downloads through its iTunes store, paving the way for exclusive deals with competitors.

Universal has decided not to renew a two-year agreement to sell the music and videos by artists such as U2 and 50 Cent via iTunes, and will instead sell content on the site on a month-by-month basis, leaving open the option to do exclusive deals with other services.

The label is also searching for greater flexibility in the way that it sells its content online, potentially weakening Apple's dominant position in the downloadable music market. Universal previously had a two-year agreement to provide content to  Apple's iTunes site, which was extended by 12 months last summer, but since it expired last month, the deal has not been renewed, the source said. Neither Apple nor Universal was immediately available for comment.

Adrian Larkin