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Thursday, March 20, 2008

LABELS AND APPLE DEBATE 'TOTAL MUSIC' MODEL


Apple and major record labels have reportedly stepped up negotiations concerning the idea of bringing the "Total Music" concept to iPod devices.

The negotiations, first reported by the Financial Times and since confirmed by industry sources, were six months ago little more than a "discussion" between Universal Music Group's Doug Morris -- the champion of the Total Music idea -- and Apple CEO Steve Jobs.

According to sources, Apple in the last month reached out to all four major labels to discuss the prospect in more detail, and negotiations now involve the various digital teams at both the labels and Apple.

The Total Music concept involves providing free access to music tied to a specific device in return for a cut of the device price-essentially bundling the cost of about a year's worth of music into the cost of the device at sale.

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