Apple in talks to buy Universal Music

Apple may bid for Universal Music, the music division of French media and communications group Vivendi, in a deal worth $6bn.

Universal Music is the world’s largest record company and has the rights to musicians / groups such as U2, Eminem and Jay-Z.

It is thought likely that Apple is looking for new markets for its personal computers, software and the iPod digital music player.

However, many shareholders do not appear happy with the proposed purchase, particularly in view of the fact that world music sales have been falling, and in 2002 fell by 7% to $32bn.

Apple’s CEO Steve Jobs has proposed an online music service using Apple’s iTune software and has been trying to close licensing deals with some of the major music companies. Online music sales have been growing.

Nonetheless there are numerous ways in which people can download music free of copyright and this continues to affect an industry that depends on royalty revenues for much of its income.