Apple on iTunes LP: Indies Welcome, Production Fees Fictional

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Last week brought reports that Apple’s much-touted album format, iTunes LP, had serious challenges. Brian McKinney of Chocolate Lab Records claimed that he had been told that Apple was charging a $10,000 production fee for iTunes LP, but it didn’t matter anyway, because the product was only meant to extend to major record labels, anyway.

This set off quite a ruckus. I called iTunes LP a form of paid advertising instead of a legitimate offering, for one.

In a rare move, Apple has responded to the explosive rumor and denies all charges. Apple contacted UK blog Electric Pig, informing them it will be “releasing the open specs for iTunes LP soon, allowing both major and indie labels to create their own. There is no production fee charged by Apple.”

That’s very positive news, and if it means what it seems to, it’s well-worth celebrating. I should also note that Apple’s announcements need to be very carefully read. They typically mean just what they say and no more. Pledging to allow labels to “create their own” iTunes LPs does not mean that you will approve them, for example. Saying “There is no production fee charged by Apple” does not mean that some other intermediary won’t charge for production. Bear in mind, Apple still claims it hasn’t rejected the Google Voice app for iPhone, claiming it has yet to approve it months after submission and heated letters to the FCC later.

Honestly, this topic looks murkier all the time. Apple is a remarkably opaque organization. The truth is, we will never know if Apple previously intended to allow indie labels to participate in iTunes LP prior to this minor controversy, nor do we know if the rumored production fee once existed. Apple keeps its inner workings so locked down that we can only ever judge the company based on its external actions. If an iTunes LP SDK is released in the next month, that’s a positive sign. And if we see the selection of iTunes LPs grow from about 12 to 1,000 titles in the relatively near future (with abundant indie label participation at no extra charge), it will be clear that the format is a major push toward a true digital album.

I’m thrilled Apple is taking this seriously, and I hope iTunes LP lives up to its potential. Keep your eyes peeled.

(Thanks, Zor!)

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