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Apple Archive

Apple Launches iTunes Europe, but Where Are the Indie Labels?

- 2004.06.18

It's finally arrived: Europeans can now use the iTunes Music Store. After quite a delay, Apple has set up its iTunes Music Store so that people in the UK, France, and Germany can download its tracks.

Those in the UK can download a single track for 79p; full albums cost £7.99. While the British have been able to download tracks from Napster for a while now, the cost was over £1, and the files would not play on the iPod, making it useless for the many people who've already bought an iPod. Other European download sites generally charge at least 99p. (See Europeans Pay More for iTunes Downloads for another perspective on iTunes Europe pricing.)

Given that Apple is quite a bit cheaper, this sounds like the iTunes Music Store in Europe will be a bit hit. Unfortunately, users will only be able to download the music from the five major record labels - the independents are out. If this seemed like a big issue in the US, it's a huge one in the UK, since independent music accounts for about a quarter of British music sales.

Why have popular indy artists have decided to boycott the iTunes Music Store?

The licensing terms. They feel that Apple could raise its prices too easily without raising the cut the artists and labels get from it. There has also been evidence that Apple is paying the major record labels much more than it is offering the independents. Until they work out a deal, artists such as Craig David and Badly Drawn Boy won't appear on the iTunes Music Store.

The other question is how will the launch of the iTunes Music Store affect sales of the iPod in Europe? While the iPod is already very popular, selling over 100,000 units in Britain, some have said the European launch of the iTunes Music Store could increase iPod sales by 40%.

Given that the iTunes Music Store is the cheaper alternative to other services and that Apple's files can't be played on MP3 players, it is very possible that people will buy iPods in order to carry their purchased music with them.

I do have to say that it's about time Apple released the iTunes Music Store in Europe. It's been far too long since it was released in the US. [Editor's note: As an expatriate Canadian, I feel a Candian store is also long overdue.] However, it is very disappointing that Apple and the independent labels haven't been able to come to some sort of agreement, as I think the fact that there will be no independent music available (at least for the time being) will affect the amount of sales on the service.

It is in both Apple's and the consumers' interests to negotiate a deal as quickly as possible.

As for iPod sales going up by 40% with the launch of the iTunes Music Store, I'm not sure if we're going to see that happen. Yes, iPod sales will increase - by 40%, though? If independent music were available on the service, perhaps. As it stands now, I think that 20% might be a more realistic number.

The iTunes Music Store in Europe has a lot of potential. Being less expensive and easier to use than other services in Europe, I'm sure it will draw customers. There's also the fact that it's the only service to work with the iPod.

All it needs are the indy labels.

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