Big news today about Universal Music Group and iTunes. Great reading. Quite funny, actually, especially, especially in tech blogs and websites. The impression one gets from the many articles on UMG's refusal to sign a long-term contract is that the company will -- at the drop of a hat -- pull its catalog from iTunes.

I'm amused by the rancorous, Doomsday predictions, for a few key reasons. First, companies often use tough negotiating tactics. Who said the business world was one of easily reached agreements? Tensions often rise...or don't you remember Wal-Mart's threats to drop labels' CDs if they weren't given a product with a far lower wholesale price?

Look, it's no big shock that the leadership of these two companies are acting this way. Apple is practically an unstoppable force. UMG is often an immovable object, and its the music company that has the market share to do things its peers sometimes wish they could do. UMG wants flexibility to make special deals with other retailers. Now it is making its voice heard.

The fact that UMG is on a month-to-month contract, rather than a long-term contract, does not necessarily portend a horrible outcome. I'm on a month-to-month lease -- and have a subletter to boot -- but I'm in good standing with my landlord. Think of it this way: In a time of great technological change, if you could go month-to-month with a mobile carrier and pass on two-year agreements, which would you choose? (In other words, are you looking forward to canceling your subscription and eating the penalty fee in order to switch carriers to get an iPhone?)

Forbes' Louis Hau nails this one. In his article "Why Universal Bit Apple Back," he predicts no noticeable change for consumers, and has an idea why UMG is being steadfast.

"A revolution it isn't. Vivendi's Universal Music will continue providing iTunes with access to its new releases and older catalog titles. Apple isn't about to drop the inventory of the world's largest music company from iTunes. And consumers won't notice any difference.

But it will give Universal some breathing room if, say, a big media company approaches them with a promising new way to distribute music digitally and wants to provide some oomph to its launch with exclusive, limited-time access to new releases from the label's hottest-selling artists.

That would be hard to do under the kind of deals that the major music companies have signed with iTunes. Now, Apple won't have automatic access to all of Universal's music. ...

So why has Universal rediscovered its backbone? Perhaps because they've caught Apple at a rare moment of vulnerability.

Apple just launched its much ballyhooed iPhone, and the device's close association with all things Apple, including the iPod and iTunes, means that its maker isn't likely to do anything to jeopardize either franchise, for example, flip the bird to Universal."