Apple, Jay-Z teaming up?


Quoting unnamed sources, MacRumors reports that Jay-Z and Apple creating a new record label, and that it's a done deal. The current head of Def Jam Records is said to be bringing other big-name talent to the venture:

[Jay-Z and Beyonce] will move to Apple to run a new music division. It sounds rather incredible: [Jay-Z's] already got a pretty good job, running Def Jam, and [Steve] Jobs may be too smart to get into the tanking recording business (as others have said). Of course, if it is true, my guess is this would be a new, revamped record biz, one based on digital distribution, not boring old physical products.

Def Jam is part of the Universal empire which recently ended its long-term contract with iTunes in favor "at-will" sales model.

Editor's note: Would the labels tolerate Apple as the third-largest distributor of music and a direct competitor for talent? Honestly, I think Apple's got the business model to be its own label, but is the industry ready for it?

What's your take?