A pan-European music retail organisation has called on the record labels to end their pre-release exclusives with download platforms. GERA-Europe, which represents the interests of several major entertainment retailers, told a recent meeting of the International Federation of the Phonographic Industry that digital outlets account for just 3% of total music sales, and that it was therefore unfair to give them the advantage of being able to sell major releases before they are on sale on the high street. Of particular concern was EMI's deal with iTunes which saw Coldplay's single 'Speed Of Sound' available via the Apple platform weeks before it reached record shops.
The record labels are in a tricky position. While GERA-Europe is right that the digital music sector is tiny at the moment, the labels see iTunes et al as the major retailers of the future, and are therefore keen to develop successful partnerships with them now. But they need to maintain good relations with the high street retailers too, who still control access to the majority of music buyers. It remains to be seen how far the retailers will go to force the record labels' hands. As previously reported, in North America HMV has been known to boycott the sale of albums by certain artists when their labels or management have negotiated exclusivity deals with smaller music retailers - a couple of years ago they took all Rolling Stones products off their shelves when the band did an exclusivity deal with Best Buy, and more recently they have been boycotting Alanis Morrisette after Warner Music did an exclusivity deal with Starbucks over the release of the acoustic version of 'Jagged Little Pill'.