Apple’s iTunes and various mobile operators agreed yesterday on royalty rates to pay song writers and music publishers for music downloads in the UK. Under the deal Apple and four mobile operators will pay 8% of the Gross revenue, excluding VAT for all music downloads they sell. Under a previous deal, the law stated that the song writers and publishers must receive 12 percent; however, the royalty had been temporarily reduced to 8 percent based on a mutual agreement. The new agreement also implements a 6.5 percent royalty rate for non-on-demand services such as streaming, according to the report. The deal was announced in a joint statement by the trade group representing record labels, BPI, and MCPS-PRS Alliance, which fixes and collects royalties on behalf of the composers, song writers and music publishers.
“All parties to the settlement welcome this agreement, which will help drive the on-going growth of the legitimate digital music market,” the statement said. The agreement also included mobile operators O2, France Telecom’s Orange and Deutsche Telecom’s T-Mobile.
The publication also reports that the agreement includes a minimum price rate which ensures the music creators would still receive a rate, even if the price of music drops significantly.
“This is a balanced voluntary settlement in which both sides can draw not just comfort from, but excitement that they can go forward and build a business together based on an understanding that will work to the benefit of all,” BPI Chairman Peter Jamieson told Reuters.
Apple has recently started contacting companies that are using the term “podcast.” without permission. Wired News reports that Apple has been sending Podcast Ready Cease and desist letters claiming that the term “Podcast Ready” and “myPodder” infringe on Apple trademarks. Apple claims that the two terms could cause confusion among consumers. This is not the first time apple have sent these letters our sister site www.easyishop.co.uk had to change its name earlier in the year from www.easyipod.co.uk due to Apple clamping down on the term iPod.
Wal-Mart has denied a New York Post article saying it is trying to discourage Hollywood studios from selling their movies on Apple’s iTunes Store. According the report, the retail giant has warned every major studio that it will retaliate against them if they work with Apple amid concerns that Wal-Mart’s DVD sales will suffer. “Customers want to watch movies and they want to be able to make the choice when and how they want to view them,” a Wal-Mart spokeswoman said. “While we recognize there are various current and potential providers of this service, we are not dissuading studios from conducting business with other providers.” The Post claims that a Wal-Mart executive told studios there would be “serious ramifications” if they signed with Apple. “They threatened to hurt us in terms of buying less products,” one Hollywood source said. The Post also claims Wal-Mart sent “cases and cases” of DVDs back to Disney when it heard of the studio’s deal with Apple.
Disney CEO Robert Iger has recently said that Apple has sold 125,000 movie downloads via iTunes in its first week. Disney movies are the only downloads at the moment and Iger said this bought in $1 million in revenue for the company. Apple now has 75 movies from Disney and its studios- Pixar, Miramax Films and Touchstone Pictures. That is great going for its first week and this will only explode once Apple signs up even more studios.
Analysts who have been looking at the new iPod Nano say that Apple have produced the new iPod Nano with profit in mind rather than gaining market share. Looking at the materials inside an iPod shuffle they believe these are made for around $30 and could be selling for $49 but apple has chosen to go for larger profits. The iPod Nano analysts claim the 8GB Nano has $130 in materials, 4GB has $90 and the 2GB has $70.
“Apple is in a secure position atop the portable media player market and has decided to strategically focus on its margin this time,” the analysts said.
ezGear has announced an update of their ezskin for the new 2nd Generation iPod Nano. ezgear are one of the first silicon cases for the Nano and will be available in Black, White, and Pink. The pack will featurea removable belt clip, click wheel protector and nect strap. The case will be available exclusively in the UK from www.easyishop.co.uk
ABC in the US is offering iTunes customers one million free downloads of last seasons final episodes of Lost, Grey’s Anatomy and Desperate Housewives. The shows are highligh shows that feature commentary via the show’s producers and editors.
Apple yesterday held a special event in San Francisco, Apple unveiled a total of 14 new iPod models.
This is the first time Apple have ever revamped their entire range at the same time. Yesterday they launched a new 2nd Generation iPod Nano which will now come in 5 colours Black, Silver, Pink, Blue and Green.
We also saw yesterday the launch of an updated version of the 5th Gen iPod which you could be forgiven for thinking was not really much of an update. The new iPod video will benefit from 30% brighter screens which have brightness controls and increased battery life.
Apple also launched a brand new iPod shuffle which has a very different design from previous models. The iPod shuffle will hold 1GB of songs and will retail at £55.
Give us your views on these new products as you get them. We have ordered a brand new Nano and will give our verdict once we receive this item.
In what has to be its clearest sign yet US retailers have been slashing prices of iPods by upto 80% this week. US retailers have been running spot ads on TV with promotions claiming 80% discounts on iPods this weekend. Apple have a press conference Sept 12th and it is widely expected that new iPods will be released then.
Business Week are claiming that Apple will announce the addition of full length movies to iTunes sometime this month. The price of the movies will be $14.99 for a new film and $9.99 for older movies. Business week also suggest that Apple may also release a new iPod with a wider screen for movies this month.
We feel that a new iPod will be launched this month but expect it to be higher capacity iPod Nano’s what you think will Apple release a video iPod this week?