[flamesbball84]

http://i.gizmodo.com/5144888/steve-jobs ... istmas-eve

Just 18 months ago, Universal was flexing its muscles to show that iTunes still depended on the record instury, not the other way around. But in this round of negotiations, "several high-level music executives" told the Times (anonymously, of course) that "they operated in fear of Apple’s removing a label’s products from the iTunes store over a disagreement, even though that has never happened. The labels do not have much leverage in negotiating with Apple."

Sounds similar to what Wal-Mart basically says to companies: charge what we want or don't sell at Wal-Mart

[phoenix]

The labels don't know how to do digital sales, and are too afraid of "illegal downloads" to even give digital media serious thought. It's made them dependent on iTunes, Amazon, and WalMart for a growing portion of their sales. I figure in another year or so they'll realize they royally screwed up, but by that time it will be too late.

The music industry as we know it will collapse within ten years. It's way too easy for an artist to record, distribute, and promote themselves - why should they give most of their profits to someone else to do it for them?