Why Apple and UMG Could Sink Amazon’s Prime MusicJune 13, 2014 – In The News
Lori Landew was quoted in the Forbes article “Why Apple and UMG Could Sink Amazon’s Prime Music.” While the full text can be found in the June 13, 2014 issue of Forbes, a synopsis is noted below.
Amazon.com recently launched its long-awaited streaming service, Prime Music. With more than 20 million subscribers already in place, Prime Music has become one of the largest paid music services in the world.
What Prime Music lacks, however, is the participation of Universal Music Group (UMG), one of the world’s three major recorded music companies. This means that Amazon won’t offer tracks from artists such as Lady Gaga, Kanye West and many others.
There are several factors that could be holding UMG back from working with Amazon, and according to a number of industry insiders, one of them could be related to Apple.
“Many labels still remember the sting of the deals made for iTunes when Apple presented the labels with ‘take it or leave it’ propositions that cut the labels’ license margins significantly and set bad precedents for other digital transmission deals,” says Landew. “And many labels still regret not taking a harder line before succumbing to the pressure of the Apple forces.”