There’s almost nothing you can’t find on iTunes these days, but there are several gaping holes created by artists who have yet to sign on to Apple’s online music distribution system. One of the biggest is The Beatles, but that may be changing:
NEW YORK (Fortune) — Click on the iTunes music store and punch in “Beatles” under artist search. More than 50 albums will pop up, including Arthur Fiedler and the Boston Pops Play the Beatles, but none are the real deal. Fans wishing to download the actual Fab Four in MP3 format have to search peer-to-peer sites like Limewire for unlicensed songs they can listen to free.
But that may be about to change. While details remain to be worked out, Fortune has learned that iTunes is close to a deal to bring the Beatles catalog online. Apple Computer (Charts) is said to be angling to become the exclusive online music store for the Beatles for a limited window of time. Other music stores, such as Microsoft’s (Charts) MSN and Rhapsody, have courted the Beatles over the years to no avail, but it appears Apple is close to getting first dibs on the band’s hits.
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At a recent industry conference, David Munns, head of EMI North America, said the Beatles would be available online “soon.” The parties were hoping to make a splashy announcement to coincide with the Nov. 21 release by EMI’s Capitol Records of “Love,” a mashup of Beatles songs that serves as a soundtrack to a Las Vegas Cirque du Soleil production. That didn’t happen. Apple Corps declined to comment.
As Fortune went to press, numerous deal points were still being hammered out. According to a music industry executive apprised of the talks, the parties were discussing how lengthy a window of exclusivity iTunes might get and how many tens of millions of dollars Jobs - who is said to be personally involved in the discussions - will commit to an advance for the band and marketing costs.
Also being discussed is whether the band would be willing to take two steps at the same time and endorse the iPod by allowing its music to be used in a commercial. Another scenario making the rounds is the prospect of the Beatles following U2’s example with a branded iPod. “If the Beatles were in an iPod ad, that would be humongous,” this executive said.
Humongous doesn’t begin to describe it.
