AC/DC is bypassing Apple


It would appear to be a small thing. The band AC/DC will bypass selling songs [subscription required] on Apple's (NASDAQ: AAPL) iTunes and has cut a deal with Verizon (NYSE: VZ) to market its music on the cell service's handsets.

The band's label, Columbia Music said that the deal offered "a fantastic new high-tech platform" for music according to The Wall Street Journal. That is code talk for saying that the record companies are sick of Apple beating them up and taking their lunch money. They want alternative digital outlets so that they can eventually get better deals to sell their music through iTunes.

While the music companies are unlikely to loosen Apple's grip on digital music downloads, it is the one vulnerability that Apple's iPod profit structure has. The iPod sells because it is cool, well-priced, and is so easy to use that it can be operated by a chimp. But, the company hegemony has allowed it to dictate prices to an industry that is already in trouble because CD sales are dropping every day.

AC/DC may be nothing other than an aberration. Or, it could be the beginning of a little trend.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 13, 2012: 12:51 AM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

    BioHealth Investor Headlines

    WalletPop Headlines

    DailyFinance BlackBerry App

    My Portfolios

    Track your stocks here!

    Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

    BloggingStocks Partners

    More from AOL Money & Finance

    BioHealth Investor Headlines

    Page Loaded in 1329112281681 ms.