Fortune: Apple close to landing exclusive iTunes Store deal with The Beatles
Monday, November 27, 2006 – 09:12 AM EST
“While details remain to be worked out, Fortune has learned that iTunes is close to a deal to bring the Beatles catalog online. Apple Computer is said to be angling to become the exclusive online music store for the Beatles for a limited window of time. Other music stores, such as Microsoft’s MSN and Rhapsody, have courted the Beatles over the years to no avail, but it appears Apple is close to getting first dibs on the band’s hits,” Tim Arango reports for Fortune.
Arango reports, “When reached by Fortune, an Apple spokesman responded that the company does not comment on ‘rumor and speculation.’ If the deal goes through, it will mark a Nixon-Brezhnev-worthy truce – with the band’s record label, Britain’s EMI Group, serving as a peacemaker – between Apple Computer’s Steve Jobs and Neil Aspinall, the onetime Beatles road manager who is now guardian of the band’s business interests under the rubric Apple Corps.”
“At a recent industry conference, David Munns, head of EMI North America, said the Beatles would be available online ‘soon.’ The parties were hoping to make a splashy announcement to coincide with the Nov. 21 release by EMI’s Capitol Records of ‘Love,’ a mashup of Beatles songs that serves as a soundtrack to a Las Vegas Cirque du Soleil production. That didn’t happen. Apple Corps declined to comment,” Arango reports.
“As Fortune went to press, numerous deal points were still being hammered out. According to a music industry executive apprised of the talks, the parties were discussing how lengthy a window of exclusivity iTunes might get and how many tens of millions of dollars Jobs – who is said to be personally involved in the discussions – will commit to an advance for the band and marketing costs,” Arango reports.
Arango reports, “Also being discussed is whether the band would be willing to take two steps at the same time and endorse the iPod by allowing its music to be used in a commercial. Another scenario making the rounds is the prospect of the Beatles following U2’s example with a branded iPod. “If the Beatles were in an iPod ad, that would be humongous,” this executive said.”
Read the full article on CNN.com
