Universal splits with iTunes, Apple none to happy

Earlier this week, a number of publications reported that Universal Music, the world's largest record label, was preparing to snuff Apple by eschewing a long-term contract in favor of a short-term deal, effectively opening the door for deals with iTunes competitors. Apple was quick to fire back, telling the San Francisco Chronicle it was "still negotiating with Universal," and stressing that "[Universal's] music is still on iTunes and their not re-signing is just not true." Turns out, however, it was true after all. Universal has released a statement saying "Universal Music Group has decided not to renew its long-term agreement for Apple's iTunes service." Furthermore, "Universal Music Group will now market its music to iTunes in an 'at will' capacity, as it does with its other retail partners." This could prove a crushing blow for Apple's dominance of the online music market, as the Universal Music group produces around one third of all albums released worldwide. And given its size, it should come as no surprise Universal would eventually balk at Apple's demands and choose to go its own way. Will Universal's departure mark the end of iTunes's dominance? Or will Universal eventually come crawling back?

For more on this story:
- see this San Francisco Chronicle article
- and this MacWorld U.K. story