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Steve Jobs and the State of Legal Music Downloads
An anonymous reader writes "Rolling Stone has published an interview with Steve Jobs about the current state of the music industry. He is a smart man, that guy. 'When we first went to talk to these record companies -- about eighteen months ago -- we said, "None of this technology that you're talking about's gonna work. We have Ph.D.s here who know the stuff cold, and we don't believe it's possible to protect digital content."'"
"And it only takes one stolen copy to be on the Internet. The way we expressed it to them was: You only have to pick one lock to open every door." I really like this idea, and I think it needs highlighting. The simple truth is that music companies, so stuck to their physical medium, seem to have been, for so long, under the impression that mp3's are much like pieces of physical media; they're copied once, that copy goes somewhere, and then its all over, as if this "copying" thing requires some kind of physical action that each user must complete, much like Xeroxing paper.
...at least he certainly gives that impression. His description of the "Kazaa experience" is the most intelligent thing I've heard a big executive say about Kazaa lately. It almost sounds as if he's tried it himself--or, at the very least, isn't six layers removed from someone who has.
"How to Do Nothing," kids activities, back in print!
In order to guarantee revenue from a subscription based method, the service has to insure you'll stay. The only real way to do this is by making your downloaded music tied to your subscription. If your subscription goes away, so does your music. After all, what is to prevent someone with a big pipe from paying for one month and downloading the entire library and leaving? Because of this, these services are MORE restrictive than iTunes.
iTunes' pricing scheme is $1 for a track or $10 for an album. That is cheap. That's what CDs should be priced at. I praise the prices of iTunes because it offers a reasonable price.
Customers don't always have to be ripped off. But the companies don't have to be ripped off either. Your idea doesn't work and there have been many failed services to prove it. What needs to happen is a happy compromise between the record companies and the consumer. The consumers need to get music for a reasonable price, but the record labels and artists need to get a fair profit. I believe iTunes is as close to this happy medium as we'll get.
...the interesting question that Jobs sidesteps here is, "In a world where music is increasingly downloaded, why do we need the traditional record companies at all?"
Why not just have Apple (or any online service) provide recording studio time and some advertising?
Jobs doesn't answer this because there is no answer. He hints at it, by saying that pretty soon the record companies won't be able to offer advances and survive (in which case, they are useless to the artist), but in general the best he can come up with for the record company's purpose is that "they pick winners." Hogwash.
1. He goes on to say that they lose money because they also pick losers, and
2. we all know as their audience that winners are not just picked, they are made. I mean, sure, record companies pick some winners -- because by definition, to be a winner you need a major label. They're serving as gatekeepers on the success of equally talented, but unsigned, artists, due to limits on advertising budgets and the disposable income of the music-buying public. What do they do for their artists? Record companies provide an advance, they provide tons of advertising and payola, and they skim off the top. That's it.
So the key to making iTunes, or any online service, popular with the Napster generation is simply this: guarantee us that the money isn't going to some crap record company, but instead to the artists we appreciate and love (and some to provide expenses and a reasonable profit, maybe 5%, to the new, more effective distribution system). Bottom line. Do that and we'll buy. Until then, screw it.
Freedom isn't free; its price is the well-being of others.
I say, support the artists you like any way you can. If you like a bunch of songs on an album, buy it. See them live when they come to your town. But don't shed a tear when the labels cry about their profit margins shrinking from 20% to 15%. I also don't think they're going away anytime soon, precisely because of their massive margins (but I don't know what they really are because they've hidden their profits so well). However, I do think there is hope from a new generation of internet-based labels, like CD Baby, who are willing to treat artists fairly (gasp! what a concept!). I'm eager to see how this plays out. I hope Jobs will allow smaller labels (like the one I'd like to start in my bedroom) onto iTunes. This will piss of the majors, but...who gives a fuck about them? They've been screwing over artists and consumers for years. Viva la revolution!
Electric Monkey Pants