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Apple (AAPL) iTunes loses artists - an antitrust problem?

Since Apple (NASDAQ: AAPL)'s iTune virtually rules the music download business, it is not surprising that some people in the music industry would challenge its dominance from time to time. One of those times is now.

Artists are beginning to realize that the iTunes process of selling individual songs is hurting their album sales. According to The Wall Street Journal, "Label executives, managers and artists chafe against the iTunes policy that prevents them from selling an album only." Indeed, some artists like Kid Rock have stayed away from iTunes and their sales have done quite well.

The plan of selling music without iTunes is only likely to last so long. Apple's 99-cents-per-song format has proved irresistible to most customers. Bands that make a great deal of money may be able to risk staying off iTunes, but if they have one or two albums that do poorly, they will come back.

Perhaps the only way that labels and artists will break Apple's hold on music is to bring an antitrust suit. Apple does control enough of the market to make a case. Who knows?

Douglas A. McIntyre is an editor at 247wallst.com.

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Last updated: February 11, 2012: 09:41 AM

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