Reports say the largest record label, Universal Music, won’t renew its contract with the highly popular download store iTunes. I see this as a strange move by Universal.

Universal Music has contracts with the majority of big names out there in the music business, from [tag]U2[/tag] to [tag]Eminem[/tag]. This recent action comes some what as a shock to me. This is a no win situation for either sides; iTunes loses money because people won’t find tracks from their favorite artists and Universal will lose money as they won’t be able to market their records as well as without iTunes.

In my opinion Universal is just staling the inevitable. The fact is CDs don’t sell anymore, downloads do. Unless Universal start their own download shop soon, i see only bad things happening for them. What do you think ?