Will the Music Gods Smile Upon Us?

According to Fortune:

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 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 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.

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 indeed. I too thought that it would have been a great coup for the Beatles to make their digital debut last week to coincide with the release of LOVE. When Tuesday came and went without “A Day in the Life” or “Yesterday” or “Strawberry Fields Forever” in the iTunes store I went on about my business of buying the physical copy at Target. Oh well. There is still light at the end of the tunnel.

When the Beatles’ Apple Corps lost their lawsuit to Apple Computers last year I felt that Jobs had a huge advantage at getting the digital rights to the Fab Fours catalogue. Don’t go after lawyer fees or court costs but ask for a meeting to discuss the future.

It looks like that is exactly what happened.

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