Universal Music Plan Subscription Rival To iTunes

Universal Music Group is reported to be in discussions with a number of record labels to help launch a subscription rival to Apple’s online music store, iTunes.

Universal’s decision to form an alternative service to iTunes comes after the company decided not renew its contract with Apple, which enables music by its artists, such as 50 Cent, to be downloaded from their digital music store.

Universal Music chief Doug Morris said that the decision not to resign was taken after Steve Jobs, the head of Apple, failed to reconsider the minimum royalty level that record labels get from the sale of music via iTunes.

According to BusinessWeek, Morris is now in discussions with Warner Music Group and Sony BMG about creating an industry-owned rival to iTunes, called TotalMusic.

An alliance between the three companies alone would see the group control 75% of total music sales in the US.

More importantly for the record labels it would encourage a boost in the sale of their music after new figures have shown a further fall in CD sales.