Record Labels Push for iTunes Price Hike

csteinle writes "Looks like the major labels are getting their own way again. The New York Post reports that the price per track may be going up to $1.25, while the per album price for some albums could go as high as $16.99. The Register has its own take on this, too. Aren't you glad you starting paying for downloaded music?" Update: 05/07 19:15 GMT by M : Apple says their prices won't increase.

Comments

Allofmp3.com

[datan]

This was featured on slashdot a few weeks ago.

It's a pretty cheap service, but some doubts were brought up whether Americans could legally use the service.

It charges 1 cent per MB of downloading, and it works out to about 5-8 cents per song. You can choose your encoding (mp3, ogg etc.) and bitrate. Allofmp3.com

Try some of the more open/competititive ones!

[linuxbaby]

Worry not. There are many many MANY more to come that are being very competitive AND open. CD Baby is delivering over 250,000 songs to EACH of the companies below, and the norm for the smaller companies is to receive MP3 or even FLAC delivery.

So instead of whining about how some big major-label Universal album (where the artist hardly gets paid anyway) is DRM'd or expensive, be an independent thinker and go try some of the smaller services.

Emusic
Website for Mac, Windows, Linux where members can download up to 40 tracks per month of high-quality MP3 files. Has been around for YEARS doing both 99-cent downloads, and all-you-can-eat downloads for paid members. Has great catalog of indie label music - company is currently reforming.
AudioLunchbox
One of the first all-independent music download sites. Tracks retail for 99 and albums retail for $9.99. ALB pays out 59 per song and $5.90 per album.
NetMusic
Digital download and streaming service. We get 65 cents per downloaded song. Entire-album downloads usually retail at $9.99.
Emepe3.com
Website that primarily targets Latin America, USA and Spain. Tracks sell for 99 cents. We get 65 cents. Entire-album downloads are usually $9.99.
Etherstream
Website that offers a la carte downloads. Tracks sell for 99 cents. We get 65 cents. Entire-album downloads are usually $9.99.
Music4Cents
Retails independent music at very reasonable prices. Pays 55 cents per download. Sells independent music - they will sell CD Baby songs at $.69.
QTRnote
Artist gets about $.64.
TriaSite
TriaSite retails independent music downloads. Pays $.65 per download
Puretracks
Canada-only service that offers $.99 downloads. Website is currently available to Candian residents only. Puretracks is acting both as an online download retailer and a back-end service provider for other retailers. Downloads cost $.99 per track - artist gets about $.59 per track.
CatchMusic
Download site focusing on independent music. CatchMusic sells a la carte downloads at $1 each. Songs retail at $1 - artist gets about $.55 per song.
Viztas Digital Marketplace
Viztas Digital Marketplace will sell all kinds of digital media - not just music. Tracks retail for 99 and albums retail for $9.99. Vistaz pays out 60 per song and $6.10 per album. Viztas has not yet launched.
DiscLogic
A la carte downloads. Tracks sell for 99 cents. We get 65 cents. Entire-album downloads are usually $9.99.

Re:Sigh

[gclef]

You mean, like these guys?

iTunes feedback link

[Monoman]

Tell them how you feel.

http://www.apple.com/feedback/itunes.html

Sony Connect launched this week

[gorbachev]

Sony's (one of the Big 5 record labels) Sony Connect music download service launched 5/5/2004. The price point is $.99 for singles and $9.99 for albums.

The same week we get reports that the Big 5 has successfully managed to pressure Apple to raise their prices.

Coincidence? I don't think so.

Proletariat of the world, unite to kill RIAA

Re:Please... kill me now

[kimgh]

Hold off on the suicidal tendencies, here. Jobs was adamant in the conference call last week that the price would remain at 99 cents, regardless of the rumors that were floating around.

I think Apple is in the driver's seat on this, so I bet the price will not be going up...

Your local library

[Danathar]

Solution:

a: Check the local library for your CD. If it's not there...go to step B.

b: Buy used CD's

c: When you are done "listening" to your used CD(s), donate them to their local library.

Pretty soon the Library will have a decent collection for everybody!

Re:Please... kill me now

[Planesdragon]

Typically, artists get $1/CD, or about 1/16th of the selling price (after the labels recoup all sorts of insane costs). Assuming the same distribution of money, the artists *should* be getting somewhere between 99/16 and 70/16 or between 6 and 4 cents per song (depending on their contract).

Actually, IIRC, it should be higher. Artists contract for a royalty on the price _as sold by the company_.

So, if a CD has a 50% markup and the artist gets a dollar from a $16 CD, they're getting a 12.5% royalty. Which, when applied to the $.70 label cut, means that they get 8 3/4 cents per song sold.

All in all, 12.5% royalty doesn't seem that bad--unless the record companies do what some claim they do, and attempt to recoup their initial expenditures from the royalty, rather than the gross profit from each individual sale.

Apple has officially denied this "rumor"

[xyankee]

Apple on Friday denied a report that the computer maker was planning to raise prices for songs bought on its popular iTunes online music store, according to Reuters. "'These rumors aren't true," said Apple spokeswoman Natalie Sequeira. 'We have multiyear agreements with the labels and our prices remain 99 cents a track.' Apple's statement came after the New York Post reported on Friday, citing one unnamed source, that music fans may have to start paying more for some songs on Apple's music store following contract renegotiations with the record labels ahead of the one-year anniversary of the store.

- MacNN

Flatly denied by Apple today

[Infonaut]

This update from Yahoo says it all. Apple is flatly denying that there will be any price changes.