Tech Shout!

Record label Universal Music has apparently refused to sign a long-term deal with Apple’s iTunes music store. This could potentially result in an exclusive deal for the company with another digital media store.

According to market sources, Universal will continue to sell music and videos of some of its artists via iTunes on a month-to-month basis, and not based on a two-year agreement as had been previously proposed by Apple.

In fact, Universal had extended a previous two-year agreement by 12 months in the last summer, which had expired in June 2007.

Universal is owned by French media giant Vivendi, and now this decision could mean that the company could offer its music to new partners. It also means that Universal can make exclusive deals with other services as well.

According to industry analysts, this move could potentially weaken Apple’s dominant hold on digital retail music. It could well be a big blow to Apple as it would surely lessen their appeal in the digital media retailing market.