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Downloaded Music Gets More Expensive

Reverberant writes "Just as the online music market is starting to gain traction, what to music execs want to do? Why, raise prices, of course! Under consideration is raising the price of online singles up to $1.25 to $2.49, or bundling less desirable tracks with hot singles."

25 of 748 comments (clear)

  1. They Just Don't Get It by HeraldMage · · Score: 5, Insightful

    Geez louise! That's exactly the problem with CD distribution in the first place! They still want me to believe I need to spend over $ 16 bucks on a disc that I know damn well cost them only $ 0.40 to manufacture and distro. Even with a couple bucks to the artist and the studio, it's overpriced. Then, I have to buy 12 or more songs, of which I'm only ever going to like about 3. Which is why I want my iTunes and MP3s in the first place. I like to be able to take even my legitimately purchased music and reduce it to the set of what *I* want to listen to. Isn't that my right as a consumer? Oh, and let me pick the medium to do it, whether that's my PC, my iPod, or a CD mix I burn for the car...

    (and maybe also first post?)

    --
    Ich suche die Leidenschaft, die keine Leiden schafft.
    1. Re:They Just Don't Get It by Belgand · · Score: 5, Insightful

      You're buying an album where you only like a few of the tracks?!? Maybe it's just me, but whenever I hear this common complaint I have to wonder just exactly what terrible albums people are buying. Is this just the hit of the month Top 40 pop crap or what? I buy an album because I like the album and in turn that's because I like the band that made it. I can think of a few albums where there are less favorite tracks or even a few that I tend to dislike and skip most of the time, but unless you're buying a pop album on the basis of the single you heard on the radio I can't imagine this being an issue.

      $16 for an album though... well, I'm right there with you.

    2. Re:They Just Don't Get It by mkoby · · Score: 5, Interesting

      There's a lot more that goes into that album then just packaging and studio time....

      Just to name a few more expenses:

      --Advertising (this includes print adds, video ads you see on TV, those nice displays you see in stores for some albums, etc)
      --Food (the record company usually pays for the food the band eats in the studio)
      --Room and Board (record compnaies usually pay for the artist to live in a hotel while the album is being recorded)
      --Payola (assuming the record company participates in this practice, believe it or not some don't)
      --Photographers (gotta put photos on that album and adds right?)
      --Music Video for the first single (this isn't always done, but with a lot of artists it is)
      --Producer, Engineers, co-writers, etc (all these people have to be paid for their work, most producers get what's called "points" of each album sold)
      --Travel Expenses (the record company pays to get the band to and from the studio, the tour bus, flights to interviews, etc)

      So yea, theres a lot more that goes into making an album then what most people think. However there are ways the companies could circumvent such costs. Like for instance, pick a studio in the band's hometown (or close to it) and fly the producer down and just pay for ONE persons expenses rather then 3-6 peoples. That's just one example.

    3. Re:They Just Don't Get It by kfg · · Score: 5, Insightful

      Spin the radio dial. It goes all the way from one end to the other. Only some of those stations are owned by Clear Channel. If you are lucky enough to be within range of a good college station they play a wide variety of music and often play whole albums (gives the DJ lots of time to read/get stoned).

      If you only shop at the mall you'll think the only stuff you can own is the stuff they have at the Gap and Lechters, no matter where in the world you go.

      Get out. Poke around. There's lots of indie/alternative stuff out there if you don't just pay attention to the obvious stuff that gets shoved down your throat.

      Clear Channel and Sony don't own everything. . .yet.

      KFG

    4. Re:They Just Don't Get It by geekschmoe · · Score: 5, Informative

      I like to be able to take even my legitimately purchased music and reduce it to the set of what *I* want to listen to. Isn't that my right as a consumer?

      No, it's not. It's up to the seller, dude. It's the package they want to sell you. If their package is a CD with 12 songs on it, then you have no "right" to demand you only get one song.

      If the concept you listed above was in fact true, I would be able to buy 20 seconds of a song because it's my "right" (it's the only 20 seconds of that milkshake song that i like anyway)!

      A good analogy is telling picasso that you only want the top half of his painting for half the price.

      To many people, the entire album is the art they want to share. If you don't want the entire album, you don't have the right to demand a portion of it!

      Also, is it pretentious of me to claim that usually the rest of the album doesn't suck, but in fact people don't listen to it enough for them to appreciate it?

    5. Re:They Just Don't Get It by TwinkieStix · · Score: 5, Interesting

      Then why does The Matrix Revolutions the movie (Widescreen) cost only $4 less than Matrix Revolutions the soundtrack? What do the musicians need that the actors, writers, producers, etc. don't need? And, remember that the sound track is INCLUDED in the DVD.

      So, after paying royalties and payola etc, that leaves about $4 for the cost of the blockbuster movie series that helped to redefine US action movies?

      Maybe it's because the expected value of the CD is $15+, and without competition, the monopoly that owns redistribution rights can set the price.

  2. The price isn't going up. by Joe+the+Lesser · · Score: 5, Funny

    It's holding steady at $0.00 per song, last I checked. ;-)

    --
    "I only speak the truth"
    Karma: null(Mostly affected by an unassigned variable)
  3. Good luck... by azadism · · Score: 5, Insightful

    Trying to get me to buy a cd or downloaded music for anything other then $10 when DVDs are loaded with tons of extra for only $15 or so.

    1. Re:Good luck... by Ubergrendle · · Score: 5, Insightful

      In most cases, the DVD is cheaper than the movie soundtrack. Yes, for popular movies DVDs sell more copies, but given that the movie PAYS FOR the production of the soundtrack in the first place, its all gravy to the rights holder and to the label.

      This is an easy example to use to anyone who argues that there's no collusion in the music industry. HMV is the same retail channel for both products -- its not the retailers marking up product, the problem lies at the source.

      --
      John Maynard Keynes: "When the facts change, I change my mind. What do you do?"
  4. Re:OMG!1 They want to make money!!!1 by Servo · · Score: 5, Interesting

    The point you missed here is, competition normally drives prices down. They know this too, thats why they want to artifically inflate prices so they can continue riding high.

    --
    A slip of the foot you may soon recover, but a slip of the tongue you may never get over. -Benjamin Franklin
  5. less desirable by Anonymous Coward · · Score: 5, Funny
    "...bundling less desirable tracks with hot singles."


    Yes, I believe this is called an "album" these days.
  6. Choosing to tip by Thinkit4 · · Score: 5, Informative

    Magnatune experimented with what I would term "tipware". Here, you pay a certain amount in excess of a minimum (like at a restaurant) as opposed to donationware where the minimum is $0. Data is available from this, and it might surprise you.

    --
    -I am an elective eunuch.
  7. The most striking part of this by Gogl · · Score: 5, Interesting
    But Apple Computer Inc.'s iTunes Music Store has been charging $16.99 for "Fly or Die," while Roxio Inc.'s Napster service sells the 12-song collection for $13.99. Both prices are higher than the $13.49 that Amazon.com charges for the CD itself. The same pricing shifts are showing up on albums by a growing slate of artists, from Shakira to Bob Dylan.

    Yes, you read that right - online stores just selling downloads are charging *more* than Amazon does for the CD itself (and Amazon typically has free shipping if you get at least $25 worth of stuff). That's seriously ridiculous: while I'm looking at this new "revolution" of pay-for-download music optimistically, I must admit that having the hard copy is still just better. Much better audio quality if you're an audiophile, ability to rip it and do what you want with it, and while the jewel cases suck the little inserted booklets are often pretty handy. Stick the CD and the booklet into your 288 CD binder and you're good to go. Unless they start packaging downloads with nicely designed info files with picures and lyrics and such, I'm not interested.

    1. Re:The most striking part of this by E-Rock · · Score: 5, Interesting
      Unless you only want 1 song, and then the comparison is stupid (and they know it). If you want the entire CD, you buy the CD and rip it yourself. If you want one track (like most people) you only buy what you want and pay far less.

      Look at it this way:

      But Apple Computer Inc.'s iTunes Music Store has been charging $1.41 ($16.99/12) for one track off of "Fly or Die," while Roxio Inc.'s Napster service sells one track of the 12-song collection for $1.17 ($13.99/12). Both prices are less than the $13.49 that Amazon.com charges for the entire CD itself. The same pricing shifts are showing up on albums by a growing slate of artists, from Shakira to Bob Dylan.
  8. They Just Don't Get It by MBCook · · Score: 5, Insightful
    The industry just doesn't get it. Finally someone comes up with a good plan on how to do things online. So what does the industry think?
    • Our album costs $13. Now that we don't have to manufacture CDs, we can charge $16! huh?
    • People are buying songs because they don't have to pay $13 to get the one or two they want, only $0.99. So let's raise the price to $2.50! huh?
    • People aren't buying the whole album when they only want a track or two, so we'll FORCE them to get the songs they don't want by bundling it for free. huh?
    • Is there ANYONE at the top of the music industry who has a clue? Consumers get a chance to get choices and pay half-decent prices. So what does the industry do? Take away the choices (the whole reason why people we're moving to online music) and raise the prices! They want to take away every reason to buy things online. They act like jerks to customers, customers demand something better, something better comes, the industry tries to change it to treat customers like jerks.

      What a winning business strategy. QUICK! Call Donald Trump and tell him the great idea!.

      Does anyone else get the feeling that music industry execs don't listen to any music? How else could they be so radically out of touch with what they are doing to consumers?

    --
    Comment forecast: Bits of genius surrounded by a sea of mediocrity.
  9. *sigh* by TWX · · Score: 5, Insightful

    I wish that the RIAA would "get it". Their sibling organization, the MPAA, has at least realised that if the merchandise is inexpensive enough, people will buy it, despite their objections on DRM (region codes) and forced things like the startup commercials. I don't like what the MPAA did to try to get DeCSS, but their products are cheap enough that I feel that I'm getting my money's worth by buying them.

    The RIAA charges as much for a CD as the MPAA for a movie. I don't feel that this is worthwhile, and thus I don't buy music, while I'll buy a DVD once a month. There's no reason to charge more than $10 for a regular CD. $17.99 is just ridiculous to expect from someone for twelve songs, with only two of those being particularly memorable.

    --
    Do not look into laser with remaining eye.
  10. Re:Sounds fine to me by MBAFK · · Score: 5, Interesting
    The problem is how do you know how much 'filler' is on the album. Hearing songs at clubs and on the radio does not let know about the rest of the material. Currently I think there are 3 ways:
    1. Listen to a copy your friend has
    2. Skim through it at a record shop (if they will let you)
    3. Download it
    I personally don't have money to burn (and like to make up my own mind) but I do like to own CDs because they sound better on my equipment than MP3s do. I wish there was a way to not get duped into buying something which wasn't up to scratch without 'being shadey' or having to wait for someone else to make the leap of faith.
  11. Don't worry! by Cervantes · · Score: 5, Funny
    Come on people, don't worry. I just talked to one of my industry contacts, and he assures me that the price increase is a temporary measure to offset the costs of this new technology. Once it becomes more commonplace and affordable, the price will go down substantially...

    ... just like CDs did.

    --
    If I knew the wedgies I gave you back in 6th grade would have resulted in this . . . I might have taken a moments pause.
  12. illegal downloading by Disc2 · · Score: 5, Informative
    one of the main reasons that people download music for free is because of the 12+ cost of CD's. When the prices drop, people are more inclined to buy a CD.

    Virgin Megastores recently offered 6 CD's for 30, basically working out at a fiver a go. I bought my first Cd's for years during this deal, because music once again became affordable for me.

    Similarly, a lot of people don't object to legally purchusaing music from iTunes etc. If they're going to push the prices up again, the same thing will happen, more and more people will turn to downloading it for free P2P. Untill the record companies wise up to these simple facts, we're just going to keep going round in circles.

  13. Cartel ? by vlad_petric · · Score: 5, Insightful
    All five of the major music companies are discussing ways to boost the price of single-song downloads on hot releases

    If this is not price fixing, then I don't know what is... FTC, where are you ?

    --

    The Raven

  14. Less desirable tracks? by SuperBigGulp · · Score: 5, Funny

    Whats up with "less desirable tracks" in the first place? Why release them if you know people won't like them?

    This is like raising the price of a pizza and then adding a side order of maggots.

    --
    Someday a Slashdot ID of 177180 will mean something.
  15. So much for the warm fuzzy's by Mr.+Cancelled · · Score: 5, Insightful

    Really... The music industry (specifically the RIAA) still does not get it! They're obviously still working under the old school sales book of "find something consumers want, and as soon as they show they're willing to pay for it, raise the price".

    Their business model is probably a slight variation of the typical "Underwear Gnomes" theory, and goes something like this...

    1. Introduce new music/artists which sound and look very similar to other acts you've succesfully promoted

    2. Drop newly signed artists if their debut record sales don't top the sales of existing signed acts

    3. As soon as the listening audience shows interest in anything being promoted, immediately mass-market it to the point where they're all sick of it (Thus insuring that 90% of the signed acts out there never release a succesfull sophmore album due to the over-saturation of their 1st)

    4. As people begin to get sick of the oversaturation, begin to crank up prices to try and suck as much as possible from the remaining buyers

    5. As sales continue to dwindle off, spend enormous amounts of money tying to find a scape goat to point the finger at, rather than
    a. spend that money on R&D to improve the company's operations
    b. spend it on signing better, more original acts.
    c. Trying to figure out what consumers really want


    6. Sue, and threaten to sue anyone who markets or trades music in any way outside of the usual channels established by said music industry. Above all, DO NOT let the established monopoly change

    7. Continue to charge more to those who are honest and continue to pay for their music. Blame the increase on the scape goats established in step 5

    8. Repeat

    As the saying goes, "Meet the new boss, same as the old boss".

  16. I thought we banished the b-side by fermion · · Score: 5, Insightful
    Such bundling is nothing new. It was done with singles, which had a A-side and a B-Side. This term is used in many ways, including Princes collection of greatest hits called 'The Hits - The B Sides.' The b-side is generally considered a derogatory statement.

    There were practical reasons to justify the existence of b-sides, the most prominent one being that vinyl in fact had a b-side, something might as well by pressed there, and the person buying the single mostly just wanted the single.

    And people bought singles. IIRC, singles were of a higher quality than LPs. Also, people often wanted, and only had enough money, for the single. Many were willing to wait for the LP to go on the used rack

    The interesting thing is that in the pre p2p days, there was much talk that singles were the cause of the declining record sales. The labels claimed that people were buying singles instead of albums, which was likely true, but in that case we were actually paying money for music. The labels did not like that money and began to try to limit the availability of singles.

    Which bring us to today and the current evil of p2p. One reason we do not legally license music(as we no longer are allowed to purchase it) is that the music is just not there. There are many tunes for which I have to download album for 10 bucks. I often buy the used cd for 7 or 8 bucks. Often the desired track is widely available. Just as often I can run off a copy from a friend. The labels need to just let Apple sell tracks for a buck. People are buying them. It solves a bunch of problems. All this other crap is just unneccesary jacking with market.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  17. Re:Sounds fine to me by adamofgreyskull · · Score: 5, Insightful

    The in-store listening-posts or whatever they call them are indeed groovy.

    The 30 second limit on iTunes sounds a little stupid to me, it would make more sense to let people hear a whole 64bit encoded mp3.

    Reasoning? Jump to 30 seconds into:
    American Woman - The Guess Who
    The End - The Doors
    Beyond The Realms Of Death - Judas Priest
    Champagne Supernova - Oasis
    Here I Go Again - Whitesnake
    You Can't Always Get What You Want - The Rolling Stones
    Today - Smashing Pumpkins

    The first 30 seconds of these isn't really enough to get a good impression of the song, either because the kick-assedness steps up after 30 seconds, or because the lyrics don't start until later or both. Maybe I'm making something out of nothing, bearing in mind that most pop music lasts 2 minutes 30 seconds...

    And...if you're a parent who wants to listen to a track before downloading it for your young child, you should be able to hear the lyrics and decide whether they are appropriate...

  18. Re:Sounds fine to me by marmoset · · Score: 5, Informative

    The iTMS doesn't play the first 30 seconds. I believe the authoring tool Apple supplies to the labels lets them choose which 30-second block is excerpted, per track.