Universal Music Group Refuses To Renew Their Annual iTunes Contract With Apple

Just a short time after Apple released one of their most highly-anticipated products of all time, they are dealt a blow from Universal Music Group.

According to sources, Universal has had difficulty renegotiating their long-term contract with the Apple, and has decided not to sign. This does not mean that all Universal songs will disappear from the iTunes Music Store in the very near future, but there is a risk of it happening down the road if an agreement is not reached.

The biggest issue between the two companies comes from Apple's 99 cent per song pricing scheme. Steve Jobs argues that the standardized pricing creates a simple, uniform system that keeps the customers coming. However, many labels don't feel that all songs should be treated and priced equally.

Universal unwilling to renew annual iTunes contract – report [via appleinsider]