Financial Times FT.com

Universal balks at long-term iTunes contract

By Joshua Chaffin in New York

Published: July 2 2007 22:28 | Last updated: July 2 2007 22:28

Universal Music has opted not to sign a long-term renewal with Apple’s iTunes, a move that could give the world’s largest record company greater flexibility to back rival digital music services.

The decision highlighted tensions between Apple, which dominates the burgeoning market for online music, and leading record companies, whose sales continue to erode – due in part to online piracy.

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