Anybody seen Ratatouille? If not, you should, so I won't give it away too much. There's one of those second-act conundrums where Linguini (the chef of Paris's best restaurant, who doesn't really know how to cook) and Remy (the rat who could be a world-class chef, but can't get into the kitchen due to his rodent-ness) both start to get pretty full of themselves. These characters have had a fruitful symbiosis up to that point, but then they each begin to think that they are doing all the real work, and the other is holding them back. Conflicts arise, mayhem ensues, and everyone eventually re-learns the value of working together. The rat has the talent, but he can't get into the kitchen without Linguini.
Universal Music Group and Apple are in the same second-act conundrum this week. UMG, which is the world's largest music company, last week notified Apple that it won't renew it's existing annual contract with iTunes, and instead prefers an "at will" arrangement. This means that UMG could throw their considerable weight around with Apple, threatening to pull all or some music from iTunes with virtually no notice. Why the need for this leverage? Maybe UMG thinks Apple is holding them back with 99-cent downloads. Apple is becoming a heavyweight in its own right in the music industry, and this could turn into an extended chess game between Steve Jobs and the record industry. To me, it's not clear who would come out on top, but I hope that we get a minimum of conflict and mayhem, and then everyone eventually re-learns the value of working together.
With iTunes, Apple really created a new way of distributing music. It has some annoying issues for some, that's sure, but overall iTunes has been a triumph, and it has changed the way we listen to, distribute, find, and even how we create music. iTunes is one of the few music distribution outlets that is actually growing, while sales of actual plastic CDs continue to sag.
On the other hand, UMG is the largest of three major global music companies that control all the popular music. Universal Music Group labels have signed a powerhouse of artists around the world, including U2, Stevie Wonder, Dr. Dre, Sting, Eminem, Bon Jovi, Akon, Erykah Badu, Beck, Black Eyed Peas, Mary J. Blige, blink-182, Mariah Carey, Sheryl Crow, D-12, Daddy Yankee, Melissa Etheridge, Eve, Fall Out Boy, 50 Cent, The Game, G-Unit, Vince Gill, Godsmack, Hoobastank, India.Arie, Jack Johnson, Jay-Z, The Killers, Diana Krall, Ludacris, Reba McEntire, Nelly, No Doubt, Puddle of Mudd, Pussycat Dolls, Ashlee Simpson, Snoop Dogg, Gwen Stefani, George Strait, Sugarland, Shania Twain, 3 Doors Down, Weezer, Kanye West, Bryan Adams, A-Ha, Elton John, Michael McDonald, Metallica, Paco de Lucia, Scissor Sisters, Snow Patrol, and Enrique Iglesias.
UMG is the rat with the talent, but Apple owns the kitchen now. These guys should keep it together.
My Trusted MOGs
I looked over the list of UMG artists and find only a few of interest. If UMG and Apple part company, I'm betting that the file swappers will pick the bones of UMG sooner than later. Besides, there's always the used music CD shop if one cares to drive yet another nail into UMG's corporate posterior.
My Trusted MOGs
Well, Alison Krauss for one, but there are literally thousands that I didn't list. I guess my point is that I think UMG will be the first of the big three (UMG, Sony, and WB) to start mucking it up with Apple, and between those three pretty much everyone who likes music will find some favorite artists, and most (but not all) indie artists would like to get signed to one of their labels.
Then again, yes, if these guys can't get along, then good riddance to them, but you can count on higher download prices while it implodes.
Cheers