Apple could benefit from EMI deal with their renewal talks with three other major labels

Apple could benefit from EMI deal with their renewal talks with three other major labels

iPod maker Apple Inc just recently signed on a new deal with the music company EMI which has created a history of sorts.

The two companies are now selling DRM free songs from the EMI catalog on the Apple iTunes digital media store. This announcement surprised the market analysts who now believe that Apple could gain a lot of leverage when it comes to renewing its deals with the three other major labels.

Apple is likely to begin talks with the music companies on renewing their deals which enables them to sell songs from their catalogue on the Apple iTunes store.

Apple is likely to try to get a similar deal signed with EMI with the other labels too. The EMI deal has given them a strong industry support to make available media from all these companies in DRM free versions at a slightly higher price.

Media sources are already citing media company executives saying: “EMI struck a deal that puts all of us at a disadvantage.”

Of course, the music companies have themselves said that they had like Apple to offer them flexible pricing structure on the iTunes in addition to share from the profits from iPod sales. This now seems like a farfetched idea.