Since digital downloads became eligible for Top 40 chart positions in 2005, some artists have moved higher on the overall rundown thanks to online alone - and have been releasing on to shelves only the nominal number of singles still required for consideration by the Official Chart Company. But now Warner Music Group (NYSE: WMG) is doing this strategy in reverse...

Emboldened by seeing Kid Rock shift phenomenal amounts of his Rock ‘n Roll Jesus in the US despite withholding the album from iTunes, Warner’s Atlantic imprint has also yanked Estelle’s Shine album from Apple’s (NSDQ: AAPL) store after four months there, in the same week her American Boy entered its Top 10.

That’s despite Atlantic trumpeting in a July press release that the track “has hit the peak position on the iTunes Stores’ Top Songs chart” and “made history as the third-ever #1 UK single based on digital sales alone”.

Confused? The strategy certainly seems to run contrary to recent wisdom. This excellent WSJ piece explains “some artists see their albums as one piece of work and don’t want them dismantled”, while “their handlers believe they can make more by selling complete albums for $10 to $15 than by selling individual songs”.

But it’s also thought the labels, increasingly concerned at iTunes’ mighty bargaining power, are trying to play hardball with Apple, which reportedly keeps 30 percent of track sales and won’t allow labels to raise song prices beyond $0.99, despite their obvious need to boost revenue. While the labels use artists as bargaining chips, however, it’s likely the musicians may lose out.

(Photo: s3)

For more on the changing landscape of the music industry, go to our EconMusic conference at the Natural History Museum in London. We have a special back-to-work rate going for this week only.

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