Digital Music News usually reports the news. But this time, the publication found itself at the center of a blowup surrounding the digital availability of the upcoming Michael Jackson audio release, This Is It.
So what happened? According to numerous executives inside Sony, the label had been unable to finalize iTunes Store inclusion based on a demand to force-bundle the entire album download. But an exclusive report by Digital Music News on Tuesday quickly reignited negotiations between the companies, thanks partly to a quick pickup by the Wall Street Journal and a pile-on by other news outlets. On Thursday afternoon, Apple reached out to confirm that a deal was signed with Sony, after bundling specifics were ironed out.
And the details may surprise you. Apple actually conceded on one critical point, offering to bundle the lead single, "This Is It," into a larger album purchase. According to iTunes executive Jason Roth, the EP will contain six previously unreleased tracks, and "This Is It" must be purchased as either a full-album or EP bundle. The availability starts October 26th.
That is the result of intensified negotiations, and somewhat of a score for Sony Music Entertainment. But ahead of that finalized deal, Sony demanded that Digital Music News change its reporting to reflect a sealed deal, even while executives within the same building continued to point to an ongoing negotiation. "Sony Music reserves all of its rights and remedies, including but not limited to the right to seek any damages resulting from this erroneous report," Sony Music Senior Vice President and Deputy General Counsel Wade Leak warned Digital Music News.
Digital Music News refused to modify its reporting, and Apple politely called a day later when the deal was actually sealed. End of story, though the resolution is bad news for second-run stores like AmazonMP3, initially positioned to gain from an iTunes gap. Apple also loses a small chip by compromising its bundling strategy, though Jackson is too huge of a star for prickly policies.
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