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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.

213 of 971 comments (clear)

  1. Please... kill me now by strictnein · · Score: 5, Insightful

    Ok... I understand why the RIAA wants to make more money off each track. There are only two or three good tracks on each CD. But to jack some prices up over what most new CDs are sold for in stores? How does that make any sense at all?

    It's so fucking stupid that I want to rip my nuts off, cook them, and then eat them. Note to RIAA: YOU ARE A BUNCH OF FUCKING IDIOTS. God... I just can't stand it. They're begging for us to pay for music. Some people do. Now they want more money from those people while giving them less than they would by buying the CD in the store.

    1. Re:Please... kill me now by strictnein · · Score: 5, Insightful

      In response to myself:

      From the register
      At the 99-cent price, only about 10 cents from each song sale goes to Apple's bottom line, with about 70 cents going to the record labels and the other 20 cents paying for credit-card fees and distribution costs, sources say.

      AHHHHHHHHH!!!!!!!!!!

      they're making a $0.70 profit on each song sold and doing absolutely no work to get it! kill me now! Armageddon has come! Jesus fuck this drives me insane. So now they need $0.95 per song?

    2. Re:Please... kill me now by dewke · · Score: 3, Insightful

      Since when has anything that the RIAA done made any sense? Now that the prices are going up, there will be a drop in online sales, and the RIAA can blame itunes for lower album sales.

      Either that, or they want to push apple out of the business so they can establish their own stranglehold on music.

      --
      Oderint dum metuant
    3. Re:Please... kill me now by phats+garage · · Score: 4, Insightful
      It does suck. As everybody has pointed out already, this price is for any song irregardless if its new or old, and the old songs have like zero costs to them, they've made their promotion costs, theres no media costs, this is simple pricing in reaction to rising demand. Apple should in reality get bigger cuts of the pie for older stuff, they're the one taking the risk of the online music venture.

      Pricing for new music should be high, older stuff could be much lower. If older stuff would be priced less (in any format), I'd buy a ton of music, but right now I don't bother.

    4. Re:Please... kill me now by MoonBuggy · · Score: 4, Interesting

      The industry execs truly need to be slammed in the head repeatedly with a clue-by-four. They haven't just shot themselves in the foot, they've dived onto a landmine.

      Let's face it, the RIAA member companies are approaching if not already at redundancy. They are the ones depriving artists of their fair share of what they created, they are little more than middlemen. If they got out of the way artists could make more money while selling their music considerably cheaper than it is now.

      Somehow their massive FUD campaigns have convinced people that the RIAA is the artist, and that the labels should be compensated for "their" creations. I'm not saying that the true creators shouldn't be compensated, but the RIAA member labels sure as hell aren't the creators of the music, it's the artists who do that.

      They should be breathing a sigh of relief that artists still want them, they should be thanking $diety that the public still have few other choices than to pay them for music and they should be grateful that people still think it acceptable to pay them for other people's creations. Finally a reasonable compromise with not-too-bad (although not too good either) DRM is implimented and becomes popular. The RIAA tries to destroy it rather than embracing what could be their last chance - if the RIAA take on Apple, they may win. If the RIAA take on online music, the artists will soon learn to bypass them and get a better deal.

    5. Re:Please... kill me now by Anonymous Coward · · Score: 2, Insightful

      On top of that, they're just starting to get these online music stores off the ground. Right now it's a toss-up whether they'll end up being a success or not, and doing price increases this early in the process won't help the stores' chances at survival.

    6. Re:Please... kill me now by Adriax · · Score: 5, Insightful

      They're trying to kill legit online music so they can go back to CD sales in stores, their favorite way of doing business. Then they can work on squishing file trading online, and go back to their tried and true anal ra... business model.

      --
      I don't suffer from insanity, I enjoy every minute of it!
    7. Re:Please... kill me now by TheLoneDanger · · Score: 4, Insightful

      They're begging for us to pay for music.

      Since when does the RIAA beg? It commands, it guilts, it sues, it takes. The RIAA (and please remember which companies comprise it so they can't hide behind that acronym) believes that it has a right to your money, because they think they control music. Even if you only hear it in passing on someone else's radio, if you hear any music it must be theirs, and you have to pay something.

      They can't seem to understand that there is any use other use for P2P or CD-Rs than copying their music, so as a Canadian I pay money for CD-Rs that I've never used to copy (which is legal anyway) or distribute music. Of course, the CRIA now want it so that copying and sharing isn't legal, while also increasing the levy. I have to wonder if this price hike will be brought to Canadian music services, as we really are better off exercising the right to copy and share given to us by this damn levy.

      --

      "But I trust in the people's capacity for reflection, rage and rebellion." -Oscar Olivera
    8. Re:Please... kill me now by palutke · · Score: 5, Funny

      It's so fucking stupid that I want to rip my nuts off, cook them, and then eat them.

      Yeah! That'll show 'em!

      --
      'I ain't a liar, baby, and I ain't proud I just want what I'm not allowed.' -- Violent Femmes, 36-24-36
    9. Re:Please... kill me now by w3weasel · · Score: 5, Insightful
      This raises and interesting option for Apple.
      they should've done it long ago, but now is the time that they finally buy Apple Records outright, and end the occasional lawsuits, and long established contract that prevents Apple Computer from entering the Music Recording Industry.

      They should buy Apple Records, which would grant them the right to sign any and all free-agent and upcoming bands to the Apple label, distribute their music on ITMS, and they would sweep the industry because they could pay the artists ~50% royalties as opposed to the .2% - 12% the RIAA offers these artists. Apple would clean up, the musicians would clean up, and the RIAA would either be forced to reform and compete, or (I wish, I wish, I wish) finally die.

      --

      Just as irrigation is the lifeblood of the Southwest, lifeblood is the soup of cannibals. -- Jack Handy

    10. Re:Please... kill me now by daveo0331 · · Score: 5, Insightful

      At the 99-cent price, only about 10 cents from each song sale goes to Apple's bottom line, with about 70 cents going to the record labels and the other 20 cents paying for credit-card fees and distribution costs, sources say.

      Really? Funny how no one even mentions how much money the ARTISTS are getting out of the deal.

      Price of song 0.99
      Record label gets -0.70
      Credit card fees -0.20
      Apple's cut -0.10
      --------
      Artist royalty (0.01)

      --
      Remember the days when Republicans were the party of fiscal responsibility?
    11. Re:Please... kill me now by palutke · · Score: 4, Insightful

      I believe the record labels are responsible for giving the artist their royalties. So they may get more than a penny . . .

      --
      'I ain't a liar, baby, and I ain't proud I just want what I'm not allowed.' -- Violent Femmes, 36-24-36
    12. Re:Please... kill me now by kimgh · · Score: 5, Informative
      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...

    13. Re:Please... kill me now by gclef · · Score: 4, Insightful

      Theoretically, artist's royalties come out of the record label's cut. Whether that actually happens is an exercize left for the reader.

      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).

    14. Re:Please... kill me now by SoTuA · · Score: 4, Funny

      Yes! Terrific idea! After all, how expensive can it be to buy the record label that distributes "The Beatles"?

    15. Re:Please... kill me now by Q2Serpent · · Score: 5, Funny

      and go back to their tried and true anal ra... business model

      I think you meant "anal rape^H^H^H^H^H^H^H^H^Hbusiness model". Try changing your TERM environment variable; it may be set incorrectly.

    16. Re:Please... kill me now by walt-sjc · · Score: 2, Insightful

      Um, that's NEGATIVE penny in accounting format...

    17. Re:Please... kill me now by pHatidic · · Score: 2, Interesting

      So buy Apple records, sell off the rights to distribute the beatles to another label as well as all other assets, therebye getting the rights to start your own label for almost nothing.

    18. Re:Please... kill me now by Anonymous Coward · · Score: 3, Funny

      I heard that the Nazis used to do that too.

    19. Re:Please... kill me now by sunking2 · · Score: 4, Interesting

      Don't be stupid. It comes out of the 70c. Or do you think that all artists command the same royalty?

      The CC thing seems a bit odd. Are they implying that if you buy 2 songs at once they get 20c per song? I suspect not, in which case Apple's cut now becomes 10 for 1 song, and 30 for multiple. Quite a difference.

    20. Re:Please... kill me now by drxenos · · Score: 2, Funny

      My ex-girlfriend used "unthaw" constantly. I couldn't make the moron understand why she was being stupid (other than for dating me!).

      --


      Anonymous Cowards suck.
    21. Re:Please... kill me now by F34nor · · Score: 2, Informative

      Michelle Jackson owns the Beatles rights not apple music.

      P.S. He is hurting for money right now.

    22. Re:Please... kill me now by metlin · · Score: 3, Funny

      Is there a mod for +5, Dream On? :)

    23. Re:Please... kill me now by lavaface · · Score: 4, Interesting

      I agree somewhat. If the record companies jack up prices, Apple should promote the independent artists already on iTMS through CDbaby. Getting into the record business directly may not be the best move for Apple. However, I could see them partnering with lesser-known labels. I've also wished there was a regional function to iTMS; buy local bands music from your city or whatever area strikes your fancy. If the latest Britney or Santana or whatever is too expensive, push the great music promoted by labels that aren't dicks.

    24. Re:Please... kill me now by Kiryat+Malachi · · Score: 2, Insightful

      Apple fans.

      --

      ---
      Mod me down, you fucking twits. Go ahead. I dare you.
      (I read with sigs off.)
    25. Re:Please... kill me now by Planesdragon · · Score: 5, Informative

      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.

    26. Re:Please... kill me now by gclef · · Score: 2, Insightful
      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

      I don't know about the majors, but I interned for an indie label a few years ago and that is exactly what they did. It was written into their contract with the band and everything. The owner was, in fact, proud of how badly he was screwing the folks who signed with him.

    27. Re:Please... kill me now by driverEight · · Score: 3, Funny

      The problem is that the word "irregardless" breaks all rules about word construction in the English language. The root word is "regard". "regardless" means to have no regard, as per standard English suffixing rules. "irregardless" represents the negation of the word "regardless", as per standard English prefixing rules. So, it must mean to not not have regard for. IOW, it's a double negative, all in one word. It's like someone saying "unthaw" when they really mean "thaw"... it's just - plain - wrong! Watch what you say. Your ideas are inflammable.

      --

      It's not the size of your .sig that matters, it's how you use it.

    28. Re:Please... kill me now by Rick+Zeman · · Score: 4, Insightful

      What the hell are you smoking?

      First, 10 cents out of every 99 is a very good profit margin, considering that Apple does not do anything other than distribute the tracks. In fact, that's an excellent profit margin


      Dunno, but you should go track him down and find him to get some....

      Out of that dime comes the R and D of iTunes for two platforms, the server farm, the massive pipes to said farm, the store itself and the ripping of the tracks for the store. And you think they're rolling in profits after paying that? Not likely....

    29. Re:Please... kill me now by li99sh79 · · Score: 2, Informative

      Michael Jackson owns the Beatles rights not apple music.
      Jackson owns the publishing rights. The songwriting rights are still held by the Beatles, and by extension Apple Records. And actually Jackson himself doesn't hold the publishing rights, that's handled by a company he established with Sony. At least that's what I remember from reading snopes.
      -sam

      --
      I was just here, where did I go?
    30. Re:Please... kill me now by nahdude812 · · Score: 4, Insightful

      Don't you see where this is going? Downloadable albums are more expensive in the stores and restricted with DRM. So people buy their albums in the stores anyhow.

      Now the RIAA can say, "You see, all this time people have been saying that it's the convenience of an electronic format they want" (which has not been our argument), "and when we offer it to them, electronic purchases are only 5% of the physical sales. These Internet music buyers are just pirates who are not happy to pay for music even when we give it to them the way they want," (which they're not).

      Good show RIAA. Red herrings for everyone.

    31. Re:Please... kill me now by timeOday · · Score: 2, Funny

      Just to make your day a little worse, look up "flammable" and "inflammable."

    32. Re:Please... kill me now by Auckerman · · Score: 4, Informative

      And our first question today will come from Steven Levy with Newsweek.
      Steven Levy: Hi, Steve.
      Steve Jobs: Hi, Steven. How are you doing?
      Steven Levy: Good. How are you? Congratulations for the year. A couple questions, related questions, about the negotiations with the labels there. One, was there any discussion from their point of view of changing the price? We've been hearing about how the labels might want to get more for online songs. And second, did they ask you to make the songs purchased on the iTunes store playable from other devices? In other words, ask you to license FairPlay to other third parties?
      Steve Jobs: Great. Let me answer those two things. First one is the price for songs in the iTunes store is remaining 99 cents per song, and we think that's what customers want and that's what we're delivering. So the prices will remain 99 cents per song and any rumors to the contrary are simply not true.
      And secondly, no, it never came up in our discussions with the labels that they would like songs purchased on the iTunes Music Store played on other portable music players other than the iPod. Possibly that's because the iPod is the most popular portable digital music player in the world with close to a 50 percent market share of all MP3 players on the market, including even $50 Flash based players. So, as you know, the iPod has grown into a billion dollar business in a little over two years and we ship more than three million iPods to date with more than 800,000 iPods sold last quarter alone. So you know, it's hard to even say who number two would be.
      Steven Levy: And the 99 cents, that didn't come up either? Basically that was something that was assumed it would not change?
      Steve Jobs: Well, I'm not going to go into details about our negotiations with music companies except to say that Apple and the music companies are offering these songs on the iTunes Music Store for 99 cents a piece, same as always.
      Steven Levy: OK. Thanks, Steve.

      --

      Burn Hollywood Burn
    33. Re:Please... kill me now by strictnein · · Score: 4, Insightful

      First, 10 cents out of every 99 is a very good profit margin, considering that Apple does not do anything other than distribute the tracks. In fact, that's an excellent profit margin... For instance, Dell has a profit margin of only 6% on the computers they sell -- that would correspond to about 6 cents for a song. Try taking an Economics 101 class sometime.

      If that's what they're teaching in this mystical "Economics 101" class, I really don't want to take it.

      Apple's $0.10 on the dollar is not profit, it's revenue. As another poster pointed out that is before all of the costs associated with the iTunes store (development, servers, promotion, etc). Apple has said they make no money on iTunes.

      Dell's 6% profit is mostly profit. Although there are marketing and other considerations to take into account the main costs (hardware, software, assembly, customer support) are all paid for by the sale of the item. Dell's focus, like most comptuer manfucturers, is now on goods with higher profit margins. Examples of these are: extended warranties, printer consumables (HP's most profitable market), business services, etc.

      Perhaps they teach this in Economics 102?

      What the hell are you smoking?

      Actually, I rarely smoke. And on the rare occasion that I do, I usually smoke Djarum cloves. Gives me a nice little buzz and they smell quite nice. Thanks for asking. Any other questions about my personal consumption habits that you may want to know about? Or would you like to tell me what you learned in other amazing classes like "Art 101", "Computer Science 101", or "Pottery 101"?

    34. Re:Please... kill me now by AKnightCowboy · · Score: 5, Interesting
      Pricing for new music should be high, older stuff could be much lower. If older stuff would be priced less (in any format), I'd buy a ton of music, but right now I don't bother.

      That's actually a really good idea. Charge $2.50 per song for the newest tracks and gradually scale it back to $0.25 if it's more than 5 years old (or some other arbitrary number) or less popular. Then the newest, most hyped garbage bears the cost of the system which is how it really works these days anyway. I'd be fine with sticking to 15 year old music legally downloaded for a quarter a piece while dumbass teenagers get their newest pop boy band sensation crap with their mom's credit card for $2.50 per track.

    35. Re:Please... kill me now by DGregory · · Score: 2, Informative

      I thought credit cards charged something like 3.5% plus 30c per transaction. They are probably averaging it over all the transactions that ITunes has. So someone buys only 1 song, the credit card company gets something like 33.5c but if they buy 10 songs, it's not the 33% that it is on the cost of 1 song.

    36. Re:Please... kill me now by Dausha · · Score: 2, Interesting

      Your ideas are inflammable.

      Trying to draw a distinction between flammable and inflammable? Unfortunately, you've fallen for one of the more classic blunders. I don't want to write my own explanation, but I'll give you one that is fairly accurate:

      . . . that items were either "inflammable" (capable of being set afire) or "non-flammable" (impervious to such attempts). So when did "flammable" happen? Did someone okay this while I wasn't watching? Will it be necessary to file a complaint with the French government for allowing this word to sneak into English? -- Sue Savage, via the internet.

      Well, I'm afraid it's much too late, and it's not the fault of the French anyway. Blame it on Latin and its tricky prefixes. In the beginning, there was "inflammable," a perfectly nice English word based on the Latin "inflammare," meaning "to kindle," from "in" (in) plus "flamma" (flame). "Inflammable" became standard English in the 16th century. So far, so good.

      Comes the 19th century, and some well-meaning soul dreamt up the word "flammable," basing it on a slightly different Latin word, "flammare," meaning "to set on fire." There was nothing terribly wrong with "flammable," but it never really caught on. After all, we already had "inflammable," so "flammable" pretty much died out in the 1800's.

      "But wait," you say, "I saw 'flammable' just the other day." Indeed you did. "Flammable" came back, one of the few successful instances of social engineering of language.

      The Latin prefix "in," while it sometimes means just "in" (as in "inflammable"), more often turns up in English words meaning "not" (as in "invisible" -- "not visible"). After World War Two, safety officials on both sides of the Atlantic decided that folks were too likely to see "inflammable" and decide that the word meant "fireproof," so various agencies set about encouraging the revival of "flammable" as a substitute. The campaign seems to have worked, and "inflammable" has all but disappeared.

      That left what to call something that was not likely to burst into flames, but here the process of linguistic renovation was easier. "Non-flammable" is a nice, comforting word, and besides, it's far easier on the tongue than its now thankfully obsolete precursor, "non-inflammable."

      http://www.word-detective.com/120398.html
      --
      What those who want activist courts fear is rule by the people.
    37. Re:Please... kill me now by Eccles · · Score: 3, Funny

      Unfortunately, you've fallen for one of the more classic blunders.

      ...the most famous of which is "Never get involved in a land war in Asia."

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
    38. Re:Please... kill me now by Captain+Spam · · Score: 2, Interesting

      Say, that does remind me... On a slight tangent, would it be a bad idea for Apple to keep the same $0.99/track and $9.99/CD rates for things from CDbaby or other independent labels or distributers and just jack the prices for the major labels? I mean, I'm fairly certain it's not CDbaby that's complaining about the prices...

      Then again, it probably would be a bad idea. The major labels would get a fair bit upset, and I'd imagine they'd pull out if the small labels had a fair chance and lower prices in the same shop they're sold in.

      Which, and I swear I didn't plan this, comes back to your point of Apple partnering with lesser-known labels and promoting them. While I think it'd be a great idea, I don't think the major record companies would stand for it, and iTMS would lose quite a bit of their artists and ultimately customers.

      --
      Demanding constant attention will only lead to attention.
    39. Re:Please... kill me now by nelsonal · · Score: 2, Insightful

      This is all accounting and Finance 101. For the iTMS, Apple's $1 is revenue, $0.30 less network costs and credit card costs is gross profit (probably in the $0.05-$0.10 range). Their advertising costs and the employees who plot iTMS strategies and account for who gets the royalties etc are in SG&A, and the development costs are in R&D (collectivly known as operating expenses (not directly applicaple to the manufacturing of the product but important to the final production of the product). After these are removed you are left with operating profit for iTMS this is likely between ($0.05) and $0.05. Apple makes considerably more I think it was in the neighborhood of 25% operating margins on iPODs. After this things like interest and taxes are removed leaving net profit.
      For the record my own smoking choice is a nice Don Tomas robusto with a stiff drink, all of about once a year. Never took art 101, CS 101 was a lame-o business computing class (CS 162 was C++), and there was a two year wait list on metals 101.

      --
      Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
    40. Re:Please... kill me now by supermojoman · · Score: 3, Funny

      But only slightly lesser known is, "Never go in against a Sicilian when death is on the line!" Sorry, I couldn't resist.

    41. Re:Please... kill me now by SubconsciousSeraphim · · Score: 5, Funny

      No, I'm pretty sure he means Anal Ra, an obscure egyptian deity who was based on the sun god but was quite fastidious about his duties as a deity.

    42. Re:Please... kill me now by Darthmalt · · Score: 2, Interesting

      Apple ought to start signing up and coming artists anyway. Offer their tracks at a much lower price and give them a feature spot on iTunes. Apple makes more The band maes more RIAA get screwed Win Win Win situation.

    43. Re:Please... kill me now by Anonymous Coward · · Score: 2, Interesting

      Since by some unGodly miricle, Michael Jackson owns the lyrics and not McCartney, MJ could use Apple's money for his legal... um... issues. Won't that be funny..... Apple Computer owning the lyrics instead of Apple Records.... hmmm....

      Hey MR JOBS! You listening here?

    44. Re:Please... kill me now by ozbird · · Score: 2, Funny

      "... the newest, most hyped garbage ..."
      Garbage is one of the few bands I'm prepared to pay new CD prices for! ;-)

  2. Don't bow to the cartels, support FREE music! by garcia · · Score: 4, Insightful

    Apple's willingness to allow some singles to be priced higher than 99 cents indicates the company feels empowered by its current success in the download market and sees a chance to boost profits from the sales of digital music.

    This does NOT mean anything of the sort. It means that if Apple wants to sell these songs on its online store it has to bow to the wishes of the music cartels. It's their music afterall.

    You know, I have downloaded less than 10 songs since the height of the Napster/Kazaa days (2000/2001?) and the rest have been songs that are legally available for free. Why the hell are we bothering to support the cartel's music? You realize that they are going to keep pushing and pushing (with bait-and-switch if necessary) to keep online downloads out so that they can reign supreme in the sales of music.

    Support only the artists that allow the free taping and distribution of their music! Do NOT let the cartels continue to dictate to you and your favorite artists how the music you love will be distributed and at what cost.

    1. Re:Don't bow to the cartels, support FREE music! by chatooya · · Score: 2, Interesting

      I agree that it's a great idea to download music that's been made freely available. But we shouldn't feel guilty about downloading major label music either. This is an industry that buys of radio stations, sue families into bankruptcy, and exploits musicians every day. If anything, people should feel guilty when they pay for anything from the major labels, because they're keeping a corrupt system alive, when it's way passed time to move to a decentralized model and a level playing field in the music business.

      And, no, not paying doesn't mean we shouldn't download and shouldn't listen to this music. There's lots of major label artists that I like a lot, and I'm not going to boycott they're music, I'm just going to support them by going to concerts and buying merch instead. That's how to change the system.

  3. Sigh by mfh · · Score: 4, Insightful

    Every time I hear about record labels these days I'm forced to think about the indies, who create the best music and get paid the least. My only hope is that a site like mp3.com will learn from the mistakes of mp3.com and come up with a solution for indies to profit and truly compete against big labels with more even footing. Nobody likes a grudge match like I do. :-)

    Bait and switch concepts always fail business, and it looks like Apple will have to cave to the pressure from groups like the RIAA (who happen to be in love with shady business practices). Drug dealers do the same thing; $0.99 for the first hit and then you get gouged when you're hooked! Maybe taco was right after all?!?

    --
    The dangers of knowledge trigger emotional distress in human beings.
    1. Re:Sigh by gclef · · Score: 5, Informative

      You mean, like these guys?

  4. Caveat emptor! by seanadams.com · · Score: 4, Interesting

    With the service agreement that they have for the iTMS, it seems already they can change the rules for the DRM (number of burns per playlist, number of computers, kinds of applications that will be allowed depending on available quicktime APIs, etc.

    It wouldn't surprise me in the least if they start charging you to "upgrade" the privileges you have for the music you've already bought.... perhaps even charging you just to continue your rental - even though it was never part of the original deal, it seems the contract allows them to change whatever they want at any time, and their copy protection, backed by law, gives them the tools to do it. Retroactive price hikes... now possible under the DMCA!

    1. Re:Caveat emptor! by Raindance · · Score: 4, Informative

      "Retroactive price hikes... now possible under the DMCA!"

      The DMCA may be a terrible, terrible thing, but it doesn't legalize *everything* a geek hates. Anything resembling a retroactive price hike would bring lawsuits and are not obviously legal under the DMCA.

      Yes, it's horrendous, but no, it doesn't make things normally illegal, legal. It 'just' makes certain normally legal things illegal.

      RD

    2. Re:Caveat emptor! by PhxBlue · · Score: 2, Funny

      Yes, [the DMCA's] horrendous, but no, it doesn't make things normally illegal, legal.

      Right. We have the Patriot Act for that.

      --
      !#@%*)anks for hanging up the phone, dear.
    3. Re:Caveat emptor! by timeOday · · Score: 2, Insightful
      From the article:
      Meanwhile, some of the usage rules - such as how many times users can burn downloads - have been altered. For example, full playlists will now only be able to be burned seven times instead of the current 10.
      Retroactively decreasing the value of what you paid for is a retroactive price hike. Just like if you brought home a 5 lb. bag of sugar from the grocery store, and C&H decided they needed more money and came and took 2 lbs out of your bag - retroactively increasing the price per pound.

      Face it, if you're "investing" in a DRM music collection, you own nothing. You have no idea what your access to that music will look like in 10 years.

  5. Uhm? by jawtheshark · · Score: 4, Interesting
    as high as $16.99.

    For that price I'd rather go and buy the album and rip it myself. At least then I can choose the format I want. If an Audio CD is marked with a label that it might not play on anything else than my stereo, I won't buy it either. If this means I can't buy music anymore, well, fine with me, I'll keep listening to the CD's I already have.

    --
    Ahhh...the great dumpster continuum. Many a free computer will be found there. -- sowth (748135)
    1. Re:Uhm? by THotze · · Score: 5, Interesting

      I think that's exactly what the music companies are hoping for. The argument that probably ''sold" the RIAA and its members on allowing companies like Apple to give legal downloads of music probably was that sales of the music companies' entire libraries would increase. This lies on the belief that there were some people that would pay for a song/an album, but currently didn't do so, probably for lack of convenience. As an example, I listen to a song on the radio that I like, and I think "hmm, I want it," but I'm not in/near a record store, so I just forget about it and don't buy anything, but if I could have just sat down and paid for it and downloaded it, I would've given the record company some money.

      The problem is that it is currently cheaper to download music than to buy it in a store - $9.99 per album for most albums online, compared with what, say $15-$20+ for most albums in a store? So what happens is some people (although, at this point, probably not a lot) figure, 'ok, so I'll just buy it for $10 on iTMS, spend $0.30 on a CD-R, and burn the album.'

      What's intereisting is that I'll bet that with retail mark up, the record companies don't see a helluva lot more money by selling albums in a bricks-and-mortar store. (I figure there's at least a 40% retail mark up, and a few pennies here and there for the physical media, including jewel case + transportation etc., compared with about $0.70 per song that the record companies currently get from iTMS). The record companies are betting that a FEW people will pay the SAME amont for online downloads as a actual purchase (those "hmm, this sounds good, I'll buy it now convenience purchasors), and the rest will go for a actual physical CD purchase.

      I don't think this is for the moeny, however, I think its because the record companies inhearantly distrust digital music on the Internet, thinking its 'dangerous'. They have more control over bricks and mortar in a number of ways, the most significant of which is that, on iTMS, its just as easy for me to download songs from an indie band as from a big record label, but, good luck finding much independent music in MegaMonolithic Music Store.

      Just my read on things.

      Tim

    2. Re:Uhm? by dynamo · · Score: 2

      Seriously. If I have to pay $17 for an album I have to share it just to justify the cost. I'm not much of a music downloader, but shit like this makes me resolved to become one.

    3. Re:Uhm? by jawtheshark · · Score: 2, Interesting
      You make excellent points, I probably couldn't agree more.

      The problem is that it is currently cheaper to download music than to buy it in a store

      Yes, and that is good. After all I get less "value" when I download a music. No leaflet, no lyrics, no CD to put in my stereo. Yes, I can burn it, but it just doesn't look the same. iTunes Store is (in my opinion, I can't use it since I live in Europe) ideal for compulsive buys. I usually don't buy CD compulsively: I have my list, write down what I want and then buy a batch. I think they are complementary markets. Compulsive versus Planned. Sounds reasonable to me.

      --
      Ahhh...the great dumpster continuum. Many a free computer will be found there. -- sowth (748135)
  6. bound to happen by alecks · · Score: 2, Insightful

    This was inevitable i suppose. I'm sure people will still continue buying, and slashdot will continue bitch. Life goes on...

    1. Re:bound to happen by superdan2k · · Score: 5, Insightful

      Well, I certainly won't be. I've spent a bit over $100 at the iTMS since it opened and, generally, have been pretty happy. At $0.99 per track, I've even been willing to experiment and give new artists a chance.

      If it goes to $1.25 per track, that's going to cause my purchasing to drop off considerable. Once again, greed's running the show at the RIAA, and once again, they're executing Operation: Footbullet faster and better than anyone.

      Want to complain to the top? Try dropping an email to sjobs@apple.com.

      --
      blog |
  7. Extra money? by hot_Karls_bad_cavern · · Score: 5, Insightful

    If i *knew* that money was going to the artists, i'd be okay with it. Since i know it's not, fuck 'em; i won't buy. Free streams are doing just fine for me.

    1. Re:Extra money? by Bobdoer · · Score: 4, Informative

      Just to provide some solid numbers:

      "Major label artists will end up with only 8 to 14 cents per song."

      For more data on how the money from ITunes is distributes, see this page from Downhillbattle.org.

  8. Load gun -- shoot foot... by danielrm26 · · Score: 4, Insightful

    Fine -- they can have it their way. The $.99 model was working fairly well, and a decent number of people were actually entertaining the notion of paying for music. This development will prove, yet again, that greed is running this show -- not fairness.

    Until there is a "fair" alternative, meaning it's accepted as fair to the majority of open-minded and reasonable people, we will continue to see a well-defined, concerted effort to make music available for free.

    iTunes was a step forward, and this represents 3 steps backward. It's a slap in the face to those who were actually paying for what was available for free. Expect them to be punished severely, in the form of greatly increased P2P activity.

    --
    dmiessler.com -- grep understanding knowledge
    1. Re:Load gun -- shoot foot... by garcia · · Score: 3, Insightful

      it's called "bait and switch" and I was expecting it all along. They knew that they would suck you in with the idea of a song for less than a buck (and plenty of people posted here that they were willing to pay just that).

      So now they want more money (because it's actually working) and they want to basically make it stupid for you to buy an album from iTunes because they are more expensive than the $12.99 you can pay at Walmart.

      Ahh, the cartels... I won't repeat my suggestion for what everyone should do.

    2. Re:Load gun -- shoot foot... by akad0nric0 · · Score: 2, Interesting

      I was a P2P convert. Started buying music on iTunes and everything. I enjoyed quickly downloading something when I had the urge, without the hassle, even if it set me back $10. I don't *enjoy* pirating music. Hell, I'm an artist myself.

      But I'm also not willing to be a financier to an industry that stifles musical creativity and gouges consumers. When I got music at a fair price, it solved half of that problem, so I supported the technology. Now, it's back to square one, and so am I.

      Congrats, RIAA, you just made another P2P music pirate out of a paying consumer.

      *digs up old Gnutella client*

      --
      akad0nric0

      This sentence no verb.
    3. Re:Load gun -- shoot foot... by Theaetetus · · Score: 2, Insightful
      it's called "bait and switch" and I was expecting it all along. They knew that they would suck you in with the idea of a song for less than a buck (

      Point of order - technically it's not a 'bait and switch'. It's a 'jacking up the price now that you're hooked', which is different. Bait and switch would be advertising the store as .99 per track, and then adding a .25 per track "handling fee" or something. However, anything you've purchased for the .99 price is still yours, so there's no 'switch'.

      -T

    4. Re:Load gun -- shoot foot... by theflea · · Score: 2, Insightful

      Its also worth noting that Apple went to the expense and trouble to design ITMS. Its truly awesome, and took some vision.

      The way I see it, If I figure out a way to sell someone else's product people aren't buying anymore -- at my own expense, I deserve some credit.

      I was so amazed while the Napster craze was going on. Nobody in the music industry could agree what to do, if anything. The music industry got their asses handed to them by a 16 year old kid.

      Anyway, fast-forward to the creation of ITMS. Apple does what the music industry should have figured out how to do 4 years earlier, and the RIAA wants to leech off Apple's and other companies' hard, innovative work. These guys are truly parasites.

  9. Bad? by seigel · · Score: 2, Insightful

    I thought there was a bad word to describe when a parent company forces a price that a retailer has to sell a product for....

    Oh...wasn't that practice illegal as well?

    Cheers
    J

  10. The labels shoot themselves AGAIN! by gb506 · · Score: 4, Insightful

    When are the record labels going to understand that their product isn't worth what they want to charge?

    It's like the NBA - a big marketing scheme where the underlying product does not have the appeal nor the value their pushers would like us to assign...

  11. Allofmp3.com by datan · · Score: 5, Informative
    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

    1. Re:Allofmp3.com by Eric(b0mb)Dennis · · Score: 2, Insightful

      Allofmp3 is a great service at the ULTIMATE price point... and getting my downloaded music in ogg?? *#&$*$&

      --
      Excuse me, I don't mean to impose, but I am the ocean
    2. Re:Allofmp3.com by Mr.Sharpy · · Score: 2, Insightful

      Please explain what makes this illegal. I don't see how it would be any different than importing a CD from a shop in Russia. It just seems to me like the advantage Allofmp3.com has is just a reality of international business brought to a consumer level.

    3. Re:Allofmp3.com by cpt+kangarooski · · Score: 4, Informative

      Because it isn't importation. When you import something, you remove it from its source and bring the very object to the destination.

      When you download something, you make a local duplicate based upon the original on a server.

      For example, let's say that Alice is in Russia, and has a copy of War and Peace. She collect calls Bob, who is in the US. If Alice reads the book aloud over the phone, and Bob faithfully writes it all down at his end, it is plainly obvious that the book Alice is holding in her hands has NOT been physically moved anywhere. A copy has been made. Even if Alice destroys her book, even if she destroyed every word after saying it to Bob, Bob's copy is still being created in the US, and is still utterly distinct from Alice's copy. It's a new copy.

      While I don't really agree with the MAI v. Peak, or Utah Lighthouse v. Intellectual Reserve cases, they VERY much stand for the proposition that computers reproduce things all the time. And in this instance, so does common sense.

      And reproduction of copyrighted works is one of the exclusive rights of the copyright holder per 17 USC 106. Distribution is another, also per 106. While there is an exception for SOME importation under 109 and 602, it's considered to be connected to the distribution right, and that involves the distribution of existing copies, not the reproduction of more copies.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    4. Re:Allofmp3.com by Anonymous Coward · · Score: 2, Funny

      I wish you Slashdotters would stop mentioning Allofmp3.com! Every time the topic comes up, the Russian Allofmp3.com servers get slashdotted and I have trouble downloading my music from them! :) Please restrict your discussion of this wonderful service to less-trafficked websites.

    5. Re:Allofmp3.com by OeLeWaPpErKe · · Score: 2, Insightful

      An equivalent reasoning would be that they make a copy in memory from the disk. Then transfer that copy onto a wire via DMA buffers (that are destroyed by the network driver right after they are on the wire). So the actual copy is made in Russia and then transferred to your country.

      Why ?

      Other option :
      In algebra, a number is only defined by it's value. Location has nothing to do with it. A 6 in the US is EXACTLY the same (in NO way you can make a distinction within the laws of algebra) as a 6 in Japan. Just think what the consequences would be if that were not the case. An mp3 is really a big number. If I were to ask you the difference between the mp3 on the disk in Russia and the mp3 on your disk, what would you answer ? Then I would test your answer. I would print both mp3's on a white piece of paper and I would ask you to point to the mp3 on your disk. If you really have a difference you should easily be able to do that. Therefore, there is no copy of that mp3. It is simply represented in 2 locations.

      Then there is the router problem. Once an internet stream gets into a router, which "copies" it onto another wire. Where does the "original" copy go ? Into oblivion. If that is a copy, routers are obviously big criminals, copying every bit that goes through them. Why is this significant ? Most non-core routers are simply a normal computer (they are as normal as any other computer with 2 network interfaces)

      Now how does the air work ? Sound waves are created in the following fashion. A single "bit" of sound is a localized drop in pressure. The actual particles of air are not significantly displaced by the soundwave. Therefore the localized drops and heights in pressure must be copied (evidence: despite the speed of sound, there are no constant winds at speeds of 1000 miles per hour).

      Moreover, the human brain cannot process differences in pressure. The human skin can, and the human ear can (a lot more precise). While there is no doubt that the actual experience of music takes place in the brain of a person. Now your brain lies in an environment that is protected from a lot of things, and your body will fight to equalize pressure in your head until your heart fysically fails (you can die from this process). So there is no way for "original" sounds to ever make it to the Brain. Therefore you are experiencing a copy of the original sound. Copying a copyrighted work is not allowed ! You pirate !

    6. Re:Allofmp3.com by Kiryat+Malachi · · Score: 2, Interesting

      You know?

      I really did try, because I think there are some interesting legal issues here. But you're so set on your own interpretation, that ALL copies are infringing, that you're not even interested in listening to the possibility that the courts have decided otherwise.

      Some interesting sections might include USC17.11.1101 (note: still illegal if fixation occurs outside of US), USC17.11.115 (note the distinction between incidental copies and non-incidental, and the distinction between delivery of a full copy and a listenable, but not keepable, datastream), USC17.1.117,

      The thing you really miss, though, is that all of these laws say "without permission of the copyright holder". The problem is that the theory of operation for the Russian site is that they have permission from the Russian copyright holder to do all of these things, and the problem reduces again to "Does US copyright law apply, or Russian, when a legal (in Russia) recording is transferred to the US?" None of your case law has anything to do with this question. However, USC17.6.602 would suggest that importation for personal use of something legally made elsewhere is legal.

      Then again, USC17.11.1101 would suggest that US law wouldn't consider the Russian version to be necessarily legal.

      You see why I said there's interesting claims for both sides? I'm done with this.

      --

      ---
      Mod me down, you fucking twits. Go ahead. I dare you.
      (I read with sigs off.)
  12. Opens the door for WalMart by SollyCholly · · Score: 2, Insightful

    The good 'ole Walton family stands to make a pretty petty (and a good bit of market share) if they can use their clout to keep the prices at their music service at $.99

    Sorry Charlie........

  13. Remember when stamps went from .15 to .19? by ObviousGuy · · Score: 4, Interesting

    It was always a boggle as to why the Post Office didn't just go right up to 20 cents a stamp instead of the weird 19 cents. It would have increased revenues and forestalled, at a very small price to the consumer, the next price hike to 22 cents (22???).

    Same thing here. Instead of going up to a nice round number like 1.50, they choose a number right smack dab in the middle. While the price may be temporarily lower now, we can expect that the next price increase will happen faster than if they just brought the cost up to a nice round number.

    Something tells me that the marketing department is at work here. Nothing else could be so evil.

    --
    I have been pwned because my /. password was too easy to guess.
    1. Re:Remember when stamps went from .15 to .19? by Dun+Malg · · Score: 4, Interesting
      It was always a boggle as to why the Post Office didn't just go right up to 20 cents a stamp instead of the weird 19 cents.

      The post office has to justify, with actual budget numbers, every penny of a rate increase. They are forbidden by law to collect more than they need and all propsed rate hikes have to go through a long, tedious review process to make sure they're not.

      Instead of going up to a nice round number like 1.50, they choose a number right smack dab in the middle.

      This is Marketing 101. Low number sell better that round ones. The problem with nice, even round numbers is that they're too easy to manipulate mathematically. Two songs at $1.50 is $3.00 and everyone knows it. Two songs at $1.29 is less than that-- only $2.58-- but most people will mentally round the number to "two dollars and something". The idea is to play on people's difficulty in dealing with math and make it HARDER to figure out how much they're really spending.

      --
      If a job's not worth doing, it's not worth doing right.
  14. Steve's take by Raindance · · Score: 4, Informative

    I'd recommend reading the Register's take on the story rather than the Post's: it has more facts right and doesn't have a flashing Howard Stern advert. Anyway, Steve Jobs also mentioned the issue in a recent iTunes conference call- here's what he said (credit goes to www.macrumors.com):

    "But in any event, most of the albums on iTunes are priced at $9.99 and below and, no, they're not creeping up. There's always a few that are a little higher than you can go in and pull out, but they're very, very competitive and we see in the future the prices of the albums coming down, not going up, because that's what it's going to take to sell more albums and it's in everybody's best interest to do so."

    So, it's definitely a label vs apple thing. Anyone know who would get the extra money from the price hike, and in what proportions?

    p.s. The journalism in the Washington Post is just "great". I quote,
    "Apple's willingness to allow some singles to be priced higher than 99 cents indicates the company feels empowered by its current success in the download market and sees a chance to boost profits from the sales of digital music."

    Where'd they get this information, you may ask? Did they perhaps pull it out of thin air? Immediately preceeding this, "Spokespersons for the major record companies declined to comment. A spokesperson for iTunes was not available for comment."

    Nice.

  15. So greedy by thebra · · Score: 2, Interesting

    "The Wall Street Journal carries a story today on the higher prices customers are starting to face from online music stores. Apple, for example, is charging $17 for N.E.R.D.'s new 12-track Fly or Die album, while Napster charges $14--both higher than the $13.50 Amazon is selling the physical CD for. All five major record labels are also reportedly discussing ways to raise the price of single downloads, from increasing the price anywhere from $1.25 to $2.50, to bundling hot singles with less desirable tracks or charging more for singles of tracks that have not yet been released in stores."

    From what I've read Apple only gets 10 cents from each track sold and RIAA get 70 cents.

  16. Removes all doubt that the RIAA is dumb. by Maul · · Score: 3, Interesting

    Apple created a service where people that people would be happy to pay for because it finally offered music at a decent price.

    So what does the RIAA do? They try to kill it by forcing Apple to increase the price until it is as expensive as a CD.

    Basically destroys the whole purpose of the service, doesn't it?

    --

    "You spoony bard!" -Tellah

    1. Re:Removes all doubt that the RIAA is dumb. by mcc · · Score: 4, Insightful

      Basically destroys the whole purpose of the service, doesn't it?

      What makes you so sure that isn't the RIAA's goal? The brick-and-mortar model is easier for the RIAA to exert control over, and the iTMS is exposing people to independent music that maybe they would have had a difficult time finding otherwise. Maybe the RIAA thinks its in their best interest to kill off online music and then go "see, online music doesn't work".

    2. Re:Removes all doubt that the RIAA is dumb. by RickHunter · · Score: 2, Interesting

      Actually, I think its more that they want to kill APPLE's online music store. Apple's one of the few computer companies that's flipped them off over the whole "trusted computing" car wreck, and they're both the most successful online music retailer AND they distribute indie songs. Oh yes, and their DRM is paper-thin.

      They've got no problem with Microsoft or Real's stores, because they've got DRM that makes being chained up in a 1 m^3 stone cell with no windows seem a positively cheery proposition. But Apple? The RIAA has a long memory, and they remember Rip, Mix, Burn. This is payback.

  17. Competition, plain and simple by mobiux · · Score: 2, Insightful

    As more people realize that iTunes is a viable option to the $18 cd, it will push the RIAA and its demon member companies to lower it's prices.

    Now if they raise the price, the RIAA can hold onto its CD monopoly for a little while longer.

  18. Shitty, but makes some sense by Anonymous Coward · · Score: 2, Insightful

    While my initial assumption is that Apple is probably happy to make a tiny profit on the iTMS in order to drive sales of its cash cow iPod, my guess is that a price hike might have been on their sales roadmap.

    Sorry to use a cliche, but...

    1. Offer songs for $.99 to get people hooked on buying online
    2. Increase price of song by $.26
    3. Wait until people get used to that, then increase price of song to $2.00
    4. Profit!

    My gut tells me that this is not going to happen, as Apple has plenty of money in the bank to run the store at its current price point. Speaking as someone who works in an establishment that has priced itself out of interest for almost all of our local demographic, I sure hope that if they raise the prices, they know what they're doing.

    MG

  19. Leave it to RIAA by andyring · · Score: 4, Interesting
    Leave it to these bloodsucking bastards to take a shotgun to the latest non-RIAA success story in the music industry. Here we finally have a successful, and wildly so, online music purchasing and distribution system, 100 percent legal, and RIAA HATES it, and seems to be doing everything they can to stomp it out. Download a CD for $17? Holy friggin' crap! I can buy the (nearly) worthless piece of plastic at Best Buy for the same price! Are they just doing it for an excuse to ass rape us at the music store too? Sure as heck wouldn't surprise me.

    On a somewhat related side note, I am running for Congress in Nebraska. Conservative? Yes, I am. But, pro-technology, anti-RIAA/MPAA/DMCA? Darn right! Want real change? Vote Ringsmuth for Congress May 11 in Nebraska. That is the only way things will happen. If elected, I will do everything in my power to bring down these cartels.

    1. Re:Leave it to RIAA by EvilNTUser · · Score: 2, Insightful

      I'm not an American, but I would like to point out that voting for people based on a single position is stupid.

      So you're pro-tech? Fine. But you also want to put something in the constitution that would take away rights. In fact, it seems like the only reason you're against the DMCA is because it affects you personally.

      I can't of course deny your right to have those views, but anyone who blindly votes for you based on your opinion on the DMCA is an idiot. Remember, that text on the FSF t-shirt says "Free Software, Free Society", not "Free Software".

      --
      My Sig: SEGV
  20. why assume it was the RIAA? by PTBarnum · · Score: 2, Insightful

    The article seems to imply that the record labels were the ones who were asking for the higher prices, but it doesn't offer any particular evidence for that inference. In fact, the whole article seems very short on evidence, even in the form of quotes from their unnamed sources.

    I suspect that the reporters found out that the price is going up, but have no real clue what happened in the negotiations.

    Isn't it possible that Apple wanted to increase their profit margins just as much as the record labels did?

  21. Big name retailers win, consumers lose again! by themaddone · · Score: 2, Insightful

    So now, as retailers drive up the price, it's now going to be cheaper to by your non-DRM CD from Target or Wal*Mart or wherever than to get a DRM restricted album from iTunes et al? I'm sorry, I don't get it.

    Cheaper promotion + Cheaper distribution + Cheaper Capital costs is supposed to equal Lower Prices (tm).

    In order for online distribution to succeed, there has to be some sort of critical mass of consumers -- without them, the business won't be profitable, and it's locked in a death spiral of having to raise prices and losing more customers.

    At some point, the music industry just might have to accept that its no longer profitable to run business in this way. Music has been around a lot longer than the recording industry, and will be around a lot longer than when the industry disappears. The sooner they get that lesson through their heads, the sooner we can stop having the exact same discussions on /. all the time.

  22. So let me get this straight by christurkel · · Score: 3, Informative

    The download biz is finally taking off after eyars of trying and you want to raise prices? This strikes me as profoundly stupid but then again the RIAA isn't exactly a brain trust.

    --

    CDE open sourced! https://sourceforge.net/projects/cdesktopenv/
  23. Try some of the more open/competititive ones! by linuxbaby · · Score: 5, Informative
    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.

    1. Re:Try some of the more open/competititive ones! by jacoplane · · Score: 2, Informative

      You missed , the Russian Music site that is offering legal digital music by the MB. If you don't trust russian companies with your credit card details, you can pay through paypal.

  24. Oh, please by glpierce · · Score: 5, Interesting

    "Support only the artists that allow the free taping and distribution of their music!"

    Should how do I stop liking good music? It's not all crap in the industry, and the independents have a long way to go (even those with talent usually don't have decent production). Should I boycott Led Zeppelin now? I only buy used CDs, but since I actually like good music I can't just pretend that everything I own is "bad" because the execs are greedy.

    --
    G
    1. Re:Oh, please by xtermz · · Score: 2, Interesting

      The Led Zepplin analogy doesn't fit. Thats a _real_ band from before the music industry went to total crap.

      I'm a die hard music fan. Some say that, but I'm one of the true ones. I like every genre, from alabama bluegrass to zimbabwe tribal drum sounds. But I can say with confidence, that the stuff on MTV today is total crap. it is not worth buying. In my mind, there is no good music from any new bands out today. Name a popular band and I'll name the one they are trying to rip off...

      Outkast? How are they Grammy worthy?? Elements of p-funk poorly borrowed and mixed with todays lame 'hip-hop'. MTV discovering backpack rappin? please...

      Linkin Park? Biohazard lightened up a bit for the younger folks with some 'hybrid' sounds...

      Evanescence? Tori Amos if she wouldnt of broken up with trent reznor and they formed a band...

      Britney, Christina? Glady's, Aretha

      Michelle Branch? Stop trying, you're not nina simone.

      Theres maybe a few people on the outskirts with real talent. Ben Harper ( guy can handle marley up to george clinton ), his buddy jack johnson ( not talented? go watch 'september sessions'. he is bleeding talent ).

      The labels dont care about good musicianship anymore or thoughtful lyrics or anything. The best stuff is indy...

      --


      I lost my concept of community when my community lost all concept of me.
    2. Re:Oh, please by drxenos · · Score: 4, Insightful

      I agree with most of what you are saying, but you cannot knock newer performers from imitating older ones, and morphing styles. That is no indication of their talent. Every generation of every form of art has done that. Even legends the likes of Led zepplin and Pink Floyd had their respective heroes, and copied their styles to a degree. That is how an artform evolves. Though, I do agree that there is a lot of crap out there today. Britney is hot, but talentless. Christina has an incredible voice, but her music is tripe. *I* think Branch is a very talented young lady, and so does the legendary Carlos Santana. You may not agree, but unlike the likes of Britney, et. al., she can actually play an instrument!

      --


      Anonymous Cowards suck.
    3. Re:Oh, please by radish · · Score: 2, Interesting

      I agree that what is on MTV is mainly junk. But the big labels control a _lot_ more than that. I'm dance music junkie - thankfully a lot of decent dance music is out on indie labels before being snapped up by the big boys. But when an artist "makes it", their albums will be out on RIAA labels. For example, you'd pry my Hybrid, Sasha, Chicane or Way Out West CDs from my cold, dead, hands :) And if they released a new album tomorrow, on Sony, I'd buy it. Sucks, but I love the music.

      --

      ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

    4. Re:Oh, please by dangermouse · · Score: 3, Insightful
      Name a popular band and I'll name the one they are trying to rip off...

      That's ok, I can do it.

      Here's a partial list for your boys, Led Zeppelin:

      • Howlin' Wolf
      • Robert Johnson
      • Willie Dixon (they flat out stole his song, in toto)
      • Leadbelly
      • Bo Diddley
      • Mississippi Fred McDowell
      • Sonny Boy Williamson

      Don't get me wrong, I love Led Zeppelin. But this old-geezer crap about music these kids listen to today sucking is the same old-geezer crap that's been spouted by old geezers since at least the 30s. Do you think maybe it's just a matter of perspective?

  25. Filthy Canadians by Silvrmane · · Score: 2, Funny

    This affects me not in the littlest way because, as a filthy Canadian, I am not allowed to download anything from the iTunes store. We'll just have to keep getting our music the old fashioned way...

  26. Yes, I am. by RatBastard · · Score: 4, Interesting
    Aren't you glad you starting paying for downloaded music?

    Yes I am, you smug little turd. I pay for my music, my videos, my software, my books, whathave you. I know that the artists involved are often getting ripped off by their record labels. But that doesn't mean I am going to screw them even furter.

    --
    Boobies never hurt anyone. - Sherry Glaser.
  27. Rip or Burn? by simpl3x · · Score: 2, Interesting

    Exactly, what do the music labels think they are going to get out of this? How about killing the legal download market? $10.00 is in my opinion too high, because if I really like something, I'll buy the CD rather than a copy of lesser sound quality. Talk about extortion.

    Hopefully, Apple will try to essentially become a label in the future, eliminating the trash that markets the likes of Britany. Friends of mine simply buy the CD, burn it in whatever way they choose, and sell it used. I'm going to start doing this, but I mentioned that I would also copy the CD cover with the receipt so that down the road when the likes of Valenti come a knockin' with the FBI, I have proof of my purchase.

    1. Re:Rip or Burn? by Daemonik · · Score: 2

      Having a copy of the receipt and album cover won't protect you legally either. Making a copy of a cd and selling that cd is as much copyright infringement as putting a copy of the cd on Kazaa.

      As long as you hold on to that cd, however, you should be able to make as many copies for personal use as you wish. In fact, I'd say that it's imperative considering the evidence of long term cd rot and risk of physical damage.

  28. kjh by Hanna's+Goblin+Toys · · Score: 2, Interesting

    Well, a price hike sucks. But stepping back to look at the big picture, I have to say that we are in the middle of a huge step in the right direction. As Apple continues its pursuit of Playfair, I'm sure everyone has noticed a subtle paradigm shift not just in the tone of people here on Slashdot but in the technical community at large.

    When the MPAA sued 2600 for linking to some source code, a lot of technical people got very upset. How could source code be banned? It's free speech, isn't it? While many flavors of speech (from fire in a crowded theater to bomb-making instructions) have been illegal for years, this was the first time that dangerous technical speech was being regulated. And for many, this meant the onset of Chicken Little histrionics.

    But the digital crowbar that spawned a million T-shirts only hurt the movie industry. Technical people were slow to empathize with the enrichment of Scientologists like Tom Cruise. And the "tyranny of the majority" was definitely hampering the effectiveness of the DMCA, halting the prosection of reverse engineers like Skylarov and spreading decryption software like DeCSS across the globe.

    With the advent of PlayFair, however, the shoe is now on the other foot. Geeks are walking a mile in Rosen's shoes, and they are not happy. For the first time, the technical community has something to lose because an encryption scheme is under attack: iTunes may be going away, with geeks standing to lose everything from TMBG to Devo to Whitney Houston (all for 99c+ a song!) just because some software developer decided to piss in the public pool.

    And the paradigm shift is now very evident. In place of Slashdot stories decrying the "MPAA witchhunt", we now have highly moderated comments in support of Apple for taking the fight to their attackers using the DMCA. And why not? After all it is much easier to understand the Israeli use of helicopter assassination after you've lived through your first bombing at a West Bank disco.

    I think that this paradigm shift represents a crucial "turning of the majority" in favor of accepting the DMCA. Once groups like EFF get on board I think the final stone will be in place for Microsoft to release a cheap "convergence device" that will allow pay-per-use movies, games, music and all other digital media on trusted hardware all across the globe. And the consumer will benefit.

    I mean, which of us wouldn't defend Lode Runner for 99c a game?

  29. Or independent music by weston · · Score: 2, Insightful

    This is potentially great for independent artists -- offering downloads at $.99 or $.90 per song now will make you seem competetive. And all you have to do is make sure you don't suck (at least, less than stuff on the radio).

  30. I know! by Simon+Carr · · Score: 5, Insightful

    And it's not just dumb because they're making the price higher, but they're making the EASILY COPYABLE audio CD format competetive again!

    I mean what the crap? On one hand they're trying to secure their intellectual property, and on the other they're deterring people from a format that secures their intellectual property with out-of-whack pricing?

    Dumbasses! This is a strategic blunder, how do they not see it? In a weird turn of the tables, I'm mad about it because they're so obviously proliferating a problem they're trying to solve.

    I should be happy, because it means the long life of easily "shareable" audio CDs, but somehow I'm not..

    --
    -- The unsig...
    1. Re:I know! by pizzicar · · Score: 2, Interesting

      I have not downloaded or bought music from any source for years. I might listen to a song on the radio and enjoy it but not enough to pay the store CD prices to get that one song. Then, after hearing so much about ITunes, I started buying some old songs that are my all time favorites. The ease of downloading, reasonable DRM, and a solid price point soon led to my willingness to explore new artists and additional songs that I would have never have paid CD prices for.

      I can't be alone in that if prices are raised past that magic price point, I will just go back to doing without. When you say that "This is a strategic blunder", it truly is an understatement.

  31. RIAA bathroom conversation.... by mikepaktinat · · Score: 2, Funny

    Exec 1: (flushes golden toilet) The number of people using illegal P2P has gone down since iTunes was opened.

    Exec 2: We can still sue them right?

    Exec 1: No, they paid for the music.

    Exec 2: WHAT!?!!?!??! Not sue people!!! but how can we offend our customer while alienating them at the same time????

    Exec 1: Raise Prices?

    Exec 2: You are a genius, CD sales will skyrocket!! We can control what they listen to again!!!! Now if you excuse me I need to use the john

    Exec 1: Its out of TP, use this (hand him stack of $100s)

  32. I Doubt Apple Wanted This to Happen by TechnoPope · · Score: 3, Insightful

    I get the feeling that Apple really didn't want this to happen. Raising the prices reduces the "deal" of downloading the album. As others have pointed out, why pay 16 bucks for an encrypted, DRM'd copy of an album that you have restricted rights to; when for 18 dollars you can have a CD that you can do what ever to. Steve Jobs and Co. probably only agreed to this out of fear of losing the rights to distribute music. While selling music online helps the RIAA, it does not do so enough for Apple to really leverage their position on the pricing. From the vantage point of Apple, they need the RIAA more than the RIAA needs them.

    --
    Slashdot...it's like Fox news, but without the biased sl...or maybe not.
  33. Shooting the golden goose by nonameisgood · · Score: 2, Interesting

    If Sony will sell throught their own channel for $0.99, but requires Apple to go to $1.29, that sound like a FTC investigation waiting to happen.

    --
    Faith is the very antithesis of reason, injudiciousness a critical component of spiritual devotion. Jon Krakauer
  34. Could be a move to push sony by deadmongrel · · Score: 3, Insightful

    Alright here's a conspiracy theory. Sony could be the reason behind the hike. New player enters a market dominated by apple and apple's price per song increases? I bet sony would remain at 99c and isn't sony a major music label? Also Ipods were the main target of apple not pusing songs so i guess they won't care much now.

  35. I'd love to be legal, really, but... by Exocet · · Score: 2, Interesting

    Frankly if I'm going to have to pay as much (or more) than the new physical CD costs, well, f-it. I'll go buy the CD. I'll have the actual media then and also be able to rip it and distribute it to as many computers as I wish.

    Either RIAA is absolutely blinded by greed (a distinct possibility) or they might just be blinded by their lust for power/control. Consider this: if people think like I do and don't want to pay as much for the restricted-ethereal-copy as they do for the free-as-a-bird physical media ...and RIAA secretly knows this... might they be simply trying to pressure Apple into raising their prices in order to have them eventually fail the iTunes business?

    At that point the RIAA could point to iTunes and say, "Hey, people and Congress, the people don't want legal stuff! Let us make evil non redbook-standard CD's that are laden with DRM! Protect our braindead ancient way of doing business!"

    I recently bought two (my first two) songs on iTunes and enjoyed the experience. But it's pushing it to ask me to spend 10-12 right now to get all the files that made up the original CD. If it goes up to $14-17, not a chance. I'll buy a used CD or I'll get it from Gnutella or I'll just listen to the damn radio. $.99/song is the LIMIT, not the start. Otherwise, I want the physical media and the dead tree art.

    --
    Exocet Industries - Taking over the world, one computer at a
  36. Supporting Independent Music by lotsofno · · Score: 3, Insightful

    really, the best route for anyone wanting to listen to music is to stick to more independent material--there's enough good stuff out there to last you several lifetimes.

    that way, when you buy a song from Magnatune, Bleep, or Audiolunchbox, you WON'T be:

    1.) sending your cash to the RIAA
    2.) attributing to the success of a service that fronts the RIAA, supporting the operation of tyrannous record labels with your cash
    3.) supporting propietary DRM
    4.) locking yourself into using iTunes or an iPod as your portable player

    by opting for other services that aren't iTunes/Walmart/Sony/Rhapsody/etc.., you WILL be:

    1.) sending more cash to the musicians you like
    2.) attributing to the success of a service that better represents and compensates the musicians you like, without restricting how you listen to your music
    3.) free to listen to your music however you want, whether it be with winamp or foobar, linux or whatever OS you use, ipod or rio karma

    1. Re:Supporting Independent Music by carlivar · · Score: 2, Insightful
      really, the best route for anyone wanting to listen to music is to stick to more independent material--there's enough good stuff out there to last you several lifetimes.

      Cool, let me know which independent bands are as good as The Beatles, Pink Floyd, Led Zeppelin, U2, REM, Neil Young, etc.

      Most of the independent stuff I've heard has been mediocre, so I look forward to discovering which of it can make me forget my White Album or Dark Side of the Moon CDs!

      Carl

      --
      Vote Libertarian
    2. Re:Supporting Independent Music by Infonaut · · Score: 3, Interesting
      1.) sending more cash to the musicians you like

      You're making the assumption that because an artist is on an independent label, I'm going to like their music. While I do like a lot of independent music, like most people for better or worse my listening habits have been built around music distributed by major labels.

      Using a collection of smaller download services is time-consuming, because you have to go from one service to the next in order to find what you're looking for, and it still doesn't expose you to the breadth of music that iTunes does.

      Unfortunately for the indies, consumers like a very broad selection all in one place. There are thousands and thousands of Windows apps, most of them very crappy, but consumers like the fact that they can find any type of application under the sun for Windows. Apple has been fighting an uphill battle against this perception for years with the Macintosh, and they've learned a lot from it.

      It's also important to remember that most people aren't even aware of independent music. For every person who thinks Rhino Records is a bunch of sell-outs, there are 9 people who don't even know who Rhino is, much less No Idea Records.

      Don't get me wrong - supporting indie music is definitely a way to keep good music alive. But don't expect that the majority of people will ever get into indie music. Even in the heyday of punk, only a miniscule percentage of the population had even heard of the biggest names in the punk scene.

      Nibbling at the edges won't get the RIAA to mend its ways. It'll take an outfit with big-time commercial clout and a lot of money to get them to clue in, unfortunately.

      --
      Read the EFF's Fair Use FAQ
  37. iTunes feedback link by Monoman · · Score: 5, Informative

    Tell them how you feel.

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

    --
    Keep the Classic Slashdot.
  38. So don't buy the fucking tunes. by sulli · · Score: 3, Insightful

    They're digging their own graves. Let them.

    --

    sulli
    RTFJ.
    1. Re:So don't buy the fucking tunes. by Eraser_ · · Score: 3, Interesting

      Buy music at .99 cents, then when it goes up to a $1, stop. Cold. Use the feedback form on the iTMS and let them know you no longer feel the value from the 26 cent price increase or whatever. Encourage your friends to do the same. To any sane company (pretend...) this would send the message that the prices have gone above the value, and people aren't willing to pay it. Of course to the RIAA it means people have just gone back to file trading or whatnot, and this whole online music thing doesn't work.

  39. now that they have been caught...... by 3seas · · Score: 2, Insightful

    ....not paying the artists....

  40. Let's all unite and... by dcrocha · · Score: 2, Funny

    only buy songs from the artists who are selling their songs directly to their fans, like George Michael and... aw shit, forget it.

  41. Re:Sony still 99 cents? by BiggerIsBetter · · Score: 2, Interesting

    Isn't Sony in the RIAA too? Isn't that like some sort of conflict of interest?

    --
    Forget thrust, drag, lift and weight. Airplanes fly because of money.
  42. Magnatune is good too by gosand · · Score: 4, Informative
    Magnatune

    I have found Magnatune to be very good. Not a massive selection, but at least they are all of good quality. No "dork-in-the-basement-with-a-keyboard" like some other free music sites have. Some of these are really good. "Brad Sucks" is interesting, "Rocket City Riot" and "The Napolean Blown Aparts" are good ol' rock-n-roll. I am sure there is more there, I just haven't gotten through it all yet.

    Check it out.

    --

    My beliefs do not require that you agree with them.

  43. CARTELS SETTING PRICES ARE ILLEGAL by fadethepolice · · Score: 3, Insightful

    Isnt' this obviously illegal? In America price-setting cartels were outlawed after the era of oil, steel, and railroad monopolies. The i-tunes customers should contact the justice department. What is this russia?

    1. Re:CARTELS SETTING PRICES ARE ILLEGAL by cmason32 · · Score: 3, Informative
      In some instances.

      However, the Supreme Court has made exceptions to the general price fixing rules - and has even do so specifically in the music industry. In BMI v. CBS, the Court said that a "middleman ... was an obvious necessity if the thousands of individual negotiations, a virtual impossibility, were to be avoided." 441 U.S. 1 (1979). The Court then got around the legal precedent by stating that the blanket license, the issue in this case, was a new product and greater than the sum of its parts. Even though price fixing is called a per se rule, the Court said that "[n]ot all arrangements among actual or potential competitors that have an impact on price are per se violations of the Sherman Act or even unreasonable restraints."

      Whether or not you agree with this rationale, it is what allows the RIAA to engage in these practices.

  44. The market will determine the price by iiioxx · · Score: 3, Interesting

    RIAA wants to hike prices? Fine. Let them.

    It's real simple. iTMS just had a record sales week with 3.3M songs sold. They are averaging something like 2.5M songs per week. Let the RIAA hike the price. Let's watch the numbers.

    If consumers don't have a problem with the price hike, sales will be unaffected. If consumers don't like it, sales will drop. If sales drop by more than 26%, the RIAA starts loosing money. If that happens, they'll be forced to restore the $0.99 pricing.

    You can't blame them for hiking their prices, if the market will yield a profit by doing so. As buyers of music, we all get to vote on whether the price increase is reasonable. If we collectively say we won't pay $1.25/song, they will be forced to either drop prices or lose money.

  45. The RIAA. . . by noewun · · Score: 3, Funny
    Snatching defeat from the jaws of victory.

    Fucking idiots. They deserve whatever they get,.

    --
    I am a believer of momentum and curves.
  46. Sony Connect launched this week by gorbachev · · Score: 5, Informative

    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

    --
    In Soviet Russia, I ruled you
    1. Re:Sony Connect launched this week by amichalo · · Score: 2, Interesting

      SonyConnect is a horrible version of on-line music service.

      They have copied Apple in that they use their own compression and it only works on Sony MemoryStick or MiniDisc devices - but Sony does not have the appeal to drive a THIRD DRM standard. Who do you know who loves their MiniDisc Player? Why buy a MiniDisc Player and the discs to hold 1000 songs when an iPod Mini is $250 and the size of ten business cards?

      --
      I only came here to do two things; kick some ass, and drink some beer...looks like we're almost out of beer.
    2. Re:Sony Connect launched this week by dema · · Score: 2, Insightful

      The New York Post reports that the price per track may be going up to $1.25...

      Apple has already denied these claims. Don't talk as if the price is 1.25 right now.

  47. what is the business justification for the change? by swschrad · · Score: 5, Interesting

    I would like to see a business justification for raising the prices 26 per cent, showing increased short-term costs in allowing apple to rip and post these things, or increased costs in referring the appropriate royalties to the artists involved.

    I bet I don't see one.

    Becaue I bet that this is just another fscking ripoff of the public, and they are trying to take control again by shutting down the economic benefits of online sales.

    I do not at this time maintain that they are trying to get some quick cash to pay off a court order that they start paying long-term old back royalties to artists exceeding 50 million dollars, royalty money owed by contract to artists, that was conveniently held back because they "could not find" artists of the demure stature of madonna.

    these bastards lie with every breath, have no direct impetus to reward the artist community that makes and fills their rice bowl, and doesn't give one half a shit about the public they sell to.

    RIAA, in short, is a band of thugs.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  48. sigh.. by Tyfud · · Score: 2, Interesting

    RIAA is just like every other corperation trying to censor something they can't control. They can't control the flow of data, and if they look through ISP logs to find .mp3's which were traded around, I'll encode/encrypt them in any format/algorithm to get around it. Screw the RIAA. I'd rather pay $.50 for a song and have 45 of that 50 cents go to the artist.
    Record labels/enforcers are going to be out of a job when musicians learn how to set up their own, much cheaper, rate of selling their songs to the public.
    Record companies will be a thing of the past. And you won't need millions of capital to start up a mainstream band/get signed. You just need access to a web and a method to get the music to the fans. This is why I liked mp3.com. If they could incorperate that into a donation method, or sampleing method then have the artist themselves sell the song on it, while making a small, 1-3% contribution to the site for offering the service, both parties would be inevitably rich and the record companies would be SOL.

  49. RIAA: Death to downloading. Stream away! by fahrvergnugen · · Score: 5, Insightful

    The RIAA loves the new Napster, or at least, part of it. For those who aren't quite familiar with how the service works, users pay a monthly fee to subscribe to Napster. Then, based on the preferences of the copyright holder, users can either stream or download tracks for a one-time fee. Once the fee is paid, the user can listen to the song as many times as they want, but only downloaded songs can be loaded onto mp3 players, etc. for use away from the computer.

    The rub, of course, is that if a subscriber stop paying Napster a monthly subscription fee, she loses access to the music streams she's already paid for. It's brilliant, because in the end, the consumer gets nothing for their dollar but instant gratification. No file, no archived recording, just the experience of having heard Outkast encouraging them to "shake it like a Polaroid picture" to file away in their memory.

    The RIAA adores this. It makes them happy like dogs rolling in some particularly nasty filth. They look out and see the incredible use statistics counting the users of p2p and iTunes, and they start multiplying subscription fees on top of those numbers. It's the best deal possible for them, because they manage to make money by selling us no real assets.

    But iTunes style stores, where users are given individual copies of songs to keep and own, and use in perpetuity for a one-time fee? The RIAA hates this. It makes them sad, like a pet owner discovering that his dog has rolled in some particularly nasty filth. Instead of a recurring revenue stream that's locked into continuing to pay for the RIAA's existing products for life, each consumer instead is a fair deal. They get songs for a low one-time fee, they're able to get their music a la carte without having to buy dozens of filler tracks, and they're still offered the instant gratification that is the only real selling point the streaming model has to offer. The RIAA, in turn, is forced to continue producing new product at a high enough quality that they can continue to sell it to customers.

    Once you understand this, it's easy to see what the RIAA is doing: They're trying to shut down iTunes.

    By raising the cost of songs to $1.25, they're breaking the magic $1 price point. Anything under a buck, well hell, that's just a candy bar. Why not buy it? But $1.25, that's a 20oz. bottle of soda, a purchase that must be considered a little more carefully. They've broken the psychological barrier to impulse purchases that $.99 magically hovers below.

    By raising the price of full albums on iTunes to be equivalent to the cost of a physical CD bought in the store, the RIAA looks on the surface like they're creating a financial incentive to go and buy the album at a music store. But we all know that's not how this will work out.

    What will happen is that iTunes' sales will drop, but they won't be met with a commeasurate increase in sales at music stores. The RIAA knows that people accustomed to the iTunes Music Store will return to illegal acquisition of music via filesharing before they'll go to the store and buy it.

    In fact, they're counting on it, because once the iTunes music store is dead, they can say, "See? We tried, we put our best foot forward, but it just didn't work. These pirates aren't interested in paying." Then the lawyers can go to town, until there is no technological nor legal recourse available to escape their stranglehold on recorded music.

    It's not only evil, it's fucking brilliant.

    --
    Even Jesus hates listening to Creed.
  50. Someone show me a breakdown please... by Cesaro · · Score: 2, Insightful

    If the record companies want an increase, why don't they show us where all the money is going? If they're not just lining their own CEO's and VP's pockets with extra cash, maybe the general populace would be a lot more receptive.

    I want to see the breakdown of the $0.99 song and of the $1.29 song

    $0.05 - Artist
    $0.10 - Production
    $0.10 - Advertising
    $0.05 - Distributor (apple, sony, etc that distribute the actual content to the consumer)
    $0.69 - Crappy executives that are earning about 69x more than they are actually worth.

    I want to know what the fixed and variable portions of the price breakdown are.

    Once industries learn that the consumer is not a babbling idiot I think the world will get a lot nicer. Treat me like a logical person. Look I understand that if I love Artist X, and everyone downloads artist X's music for free, and Artist X doesn't see a profit, Artist X is probably not going to make any more albums for me to enjoy.It *IS* that simple.

    The revolution I seek is not for FREE things, but it is to appropriately compensate those doing the work and cut out the fat cats of the RIAA and execs that just live off the fat of the land. I'm not here to shaft the artist at all, I'm here to shaft the leeches that are parasites clinging to and feeding off of the actual artists. The artist deserves money, the producers, the sound workers, all deserve to get compensated for their work, but I'd venture to say that most of the other costs are not really value adding to the product we receive.

    Love me, hate me. I want a world when you get what you deserve.

  51. Sue the bastard record labels by millahtime · · Score: 2, Interesting

    Aren't cartels illegal in the US. Can we ban together and Sue the bastards for being the cartels they are.

  52. Fly or Die is not $16.99 at all by Hackie_Chan · · Score: 2, Informative

    Last time I checked (one minute ago) N.E.R.D's Fly or Die album was on sale for $13.99. That's 14 bucks for twelve songs, two whom you can only get by purchasing the entire album. Washington Post are, as Al Franken would say, "LIIIAAAAAARS!"

    --

    What's so bad about being lazy? What if there was a war and nobody showed up?
  53. Apple iTMS supports indies by gunnk · · Score: 5, Interesting

    From Mac News Network:

    Jobs today said that Apple has the largest online music catalog in the world, touting over 700,000 songs from over 450 independent labels as well as the big Five.

    I've also read that Apple offered the SAME EXACT TERMS to indies that the Big Five get.

    Full article here:
    http://www.macnn.com/news.php?id=24469

    --
    Life is short: void the warranty.
  54. Actually, it's not clear that this story is true by Caesar · · Score: 2, Informative

    From our coverage at Ars, it's not entirely clear that these reports are true. Just a week ago Jobs said that all of these rumors were false.

  55. this makes sense by rabbot · · Score: 2, Insightful

    Let's raise the prices of legal downloadable music so people will stop downloading it illegally.

    Brilliant.

  56. Credit Card Processing by sevinkey · · Score: 3, Interesting

    I work for a DRM company who talks to some of these giants (and Apple), and TimeWarner execs say that they aren't making any money off of selling songs at 99cents a pop because the credit card transaction fees eat up a lot of this.

    What they need to do is sell tokens to make this really work.

  57. Excuuuuuse me? by cinderful · · Score: 2, Insightful

    I would argue that independents have VASTLY more talent and VASTLY better production. A good majority of production you hear on major labels is auto-tuned to the point that the vocals on the recording don't necessarily represent the musicians actual voice. I don't know how you can argue that production is somehow 'worse' on smaller labels. Equipment and software is cheaper than it's ever been and I think it's leveling the playing field to the point that a good indie album sounds just as good if not better than a higher production major label release. Not to mention, old Zeppelin albums had crap production. But really, why are you still buying their albums? Are they still releasing them?!

  58. Anti-trust by spike2131 · · Score: 2, Interesting

    This should be prevented by anti-trust laws. The FCC doesn't allow the RIAA to jerk radio stations around with these kind of royalty-pricing shennagins, so why can they do it to Apple?

    --
    SpyDock: Scientific Python in a Docker container
  59. AllOfMp3.com? by Jtheletter · · Score: 4, Interesting
    So has anyone figured out the deal with allofmp3.com since it was posted on slashdot a little over a week ago?

    It's one of those sounds-too-good-to-be-true deals:
    Pay only for bandwidth (resonable $$ too)
    Choose your encoding format
    Choose your encoding bitrate

    I think the unlisted "feature" here is likely 'Fund the Russian mafia' but it's hard to tell from the site alone how legitimate it is, what their real distribution rights are, and if artists are even recieving money from them.

    Any slashdotters have experiences or insight on this service? I know someone must because we /.'d it in about 10 minutes after the article went up.

    --
    -- I'm not a pessimist, I'm a realist. It's not my fault that life sucks so much. --
    1. Re:AllOfMp3.com? by Contact · · Score: 2, Insightful
      I've been using AllOfMP3.com for the past few weeks, and put about 40-50 dollars into it. The main draw for me was the ability to choose the encoding format, rather than the low cost - I grab everything at lame --alt-preset extreme, which tends to run at about 80-140 Mb per album, thus 80 to 140 cents.

      Their range is pretty good, and the site "feels" nicely put together (although it can sometimes be a little slow at peak times). They provide a download manager for free (called AllOfMP3 Explorer) which does clever stuff like automatically renaming and filing tracks, setting up your chosen options for ID3 tagging, and validating your downloads (and correcting any errors) using checksums. You can, of course, just download using standard HTTP if you'd prefer, but I've found it pretty handy.

      I initially assumed this was some sort of scam, but the general level of support and professionalism shown makes me suspect there's a fairly large business behind it, and they seem fairly confident that it's legal, at least in Russia.

      From a moral standpoint, I'd rather use a service where I knew that a reasonable amount of money went to artists, and I'd be willing to pay substantially more if one was set up... of course, the same criticism could be applied to the current major labels as well, who aren't exactly fair with their "clients" either.

      I used to buy a reasonable number of CDs (and I still do from indie labels) but the major labels have repeatedly shown that they're not interested in a a fair deal - they just want everything they can get. I don't feel too bad about returning the attitude.

    2. Re:AllOfMp3.com? by wtfover · · Score: 2, Insightful

      I've been using it for a couple of weeks, and have put about $20 into it. I don't know about the legalities of the whole service, but i'm willing to pay their price just so i don't have to deal with all the negatives of kazaa and similar services - corrupted & mislabelled files, slow downloading speed, uploading to other people, etc. The additional features of chosing your own encoding and bitrate are just icing on the cake.

      That being said, the allofmp3 site sure *feels* legitimate, give or take the odd translation oddity from russian on the english site. It's a clean interface, well set up, and not full of ads or pop ups or whatnot. I did pay via paypal. Altho that's not my first choice, I do trust them with my credit card a little more than some random russian who-knows-what running the website.

      The only thing that set of bells in my head was their "Wanted" program. Basically, if there's a CD out there they want but don't have, you get credit if you use their program to upload a high quality digital version of it to them. That can't be legal, unless they then go out and obtain their copyright after?

      In a nutshell, if they have what I need, I'm now passing on the less-legal ways to download mp3s. So far, I've been impressed with these guys. I do wonder how long it will be before the RIAA trys to shut them down.

  60. Re:True but Re:Allofmp3.com by RatBastard · · Score: 3, Insightful

    On iTunes, Napster (the irony), Wal*Mart, et al, the artist gets the share the record company is conractually abliged to pay them. Whether that's 1 cent a song or 50 cents a song. Whatever pittance it might be, they do get payed.

    AllOfMP3 and other grey market Russian MP3 sites do not pay them anything at all. Maybe, just maybe they got a few pennies from the sale of the CDs that these companies bought to master their catalogs, but I really doubt that as well.

    --
    Boobies never hurt anyone. - Sherry Glaser.
  61. And quoting the article... by lpangelrob2 · · Score: 2, Informative
    Under the terms of some of the deals, the prices for some of the most popular singles could rise to $1.25, according to sources familiar with the negotiations.

    Just supply and demand, folks. I don't think many people here would be interested in what goes for $1.25, anyway.

    If prices across the board get raised to $1.25, on the other hand, you've got reason to cry "bait and switch." But that's not what this article is saying.

    1. Re:And quoting the article... by smcavoy · · Score: 2, Insightful

      Supply and demand? How does that apply downloaded music?
      Supply of copies is unlimited, disturbution could be considered supply I guess. But I am sure Apple has a system that scales quite well.

  62. My letter to Apple by gavinroy · · Score: 5, Interesting

    Dear Apple,

    I am writing you due to the story that I read at the New York Post that you are considering raising the price for songs and albums at the iTunes Music Store (http://www.nypost.com/business/20309.htm). Let me first explain that I am what I would consider your average or target user. I own both a 10 gig and 40 gig iPod, both multiple pcs with iTunes and a G4 running OS/X. I bought my original 10 gig iPod *because* of the music store. I bought my 40 gig iPod yesterday because I ran out of room on the 10 gig and frankly iTunes doesn't make dealing with deselecting large amounts of music to be copied to the iPod easy. I have also purchased somewhere between five and ten albums at the music store, and even purchased an EP today. Granted that's not a huge amount but by my tally, I've spent over $1,000 on your music related offerings all together. I am also an Apple stock holder.

    My point in this email is to let you know that I will discontinue use of the Music Store should you raise the rates. The 0.99 price point and the $10 or under album prices is *what is appealing* despite the numerous disadvantages including only being able to download once. If I'm going to pay more than $10 for an album I will go to the store and buy it. That way I get the original artwork, album notes, and something tangible that I don't have to burn to cd to have a backup of. I also expect your sales volume to decrease steadily if you should raise the rates.

    From my perspective the music industry wants it both ways, a steady price for the consumption of music, regardless of production costs. Lets just assume that the price of CD's in the market today is not a product of collusion and price fixing. There are tangible costs beyond that of the artists, producers, and engineers. There is the cost to duplicate the media, provide the jewel case, the artwork, inserts, packaging, shipping, and distribution. Ideally iTunes Music Store provides a way for the fans to get what they want cheaper, and for the Music Industry to get more return on their money because of the lack of cost associated with the distribution of the content. Apple conceivably wins in this scenario also because of the overall brand imagine enhancement which entices iTunes Music Store users to buy iPods, macs, and OS/X upgrades.

    I hope that my letter is not falling on deaf ears, and Apple doesn't forget what made the iPod and iTunes Music store offering popular in the first place.

    Respectfully,

    Gavin M. Roy

    1. Re:My letter to Apple by Geoff-with-a-G · · Score: 3, Informative

      Dear Apple,

      I am writing you due to the story that I read at the New York Post that you are considering raising the price for songs and albums at the iTunes Music Store



      Dear Mr. Roy,

      I'm sorry, did you say the New York Post? Seriously? And you noticed that part "could rise to $1.25, according to sources familiar with the negotiations"

      See, here's the thing. The New York Post... not exactly the same as the New York Times, and even they are getting unreliable these days. And the part where they're extremely vague, that should have tipped you off as well.

      On the other hand, the ten times where Steve Jobs stated clearly and in public that prices would not rise, that seems at least a little bit credible.

      In conclusion, please keep buying our products, but please stop writing us letters about every crazy tabloid story you hear on slashdot.

      Respectfully,
      P.R. Flakington
      Apple Public Relations

      Note to slashdot readers: Read the article. Notice the sources. Apply skepticism before righteous indignation.



  63. Jerks by AviLazar · · Score: 2, Insightful

    File trading has been happening before iTunes and online music stores, and file trading will continue to happen after. By forcing people to purchase CD's at stores (through increased online purchases) the RIAA is paying extra for CD's, CD cases, CD covers, shipping, storage, building costs, man power, etc... So they want MORE money for doing LESS work. They are a bunch of jerk offs (as well know). Shouldn't there be a collusion/price fixing/anti trust suit against these guys for their actions?

    --

    I mod down so you can mod up. Your welcome.
  64. Still waiting on the distribution bypass... by GPLDAN · · Score: 2, Informative

    Anybody know of a band that broke-out with real sales & popularity on the net or via mp3 alone?

    A band named Fugazi basically flipped off the whole industry and went completely indy. They didn't get rich, but they are beloved my many GenX like myself.

    I know the old mp3.com didn't go anywhere trying to push artists that weren't on a label, but I never thought that model worked very well. The model that was interesting was the band website, with all the songs online and you could donate. Shareware mp3s.

    If radio Paradise can pull in about $110k/yr in domations (he'll need more this year) - I wonder if some bands could make it this way.

    I download stuff from Finnish techno, stufffrom Japanese speed metal bands, the market for free music that is global, authored and distributed by the bands themselves exist - but it hasn't been a revolution like I thought it would be 5 years ago. There are still corporate conglomerates like the production company that does the American and World Idol gig. They invade the pre-teen mind with that shit, and pre-empt any attempt to look into the independant music scene.

  65. Your local library by Danathar · · Score: 5, Informative

    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!

  66. Film at Eleven by cgreuter · · Score: 4, Funny

    And so, laughing maniacally, the music industry snatches the gun from Apple and begins frantically shooting the stumps at the ends of its legs.

  67. Um, Did you learn math from Ross Perot? by UrgleHoth · · Score: 4, Funny

    You take 0.99 and subtract the line items:
    0.99-(0.70 + 0.20 + 0.10) = -0.01

    That mean that the artist OWES someone $0.01 for each song sold.

    --

    Dogma - "let's just say we'd like to avoid any empirical entanglements."
    1. Re:Um, Did you learn math from Ross Perot? by Speare · · Score: 3, Informative

      Um, have you never seen financials or spreadsheets, where negative financial terms are shown in parentheses?

      --
      [ .sig file not found ]
  68. .99 Cents?! I Don't Think So!!! by cmagnani · · Score: 2, Interesting

    The small amount of music I've downloaded from Napster has actually GENERATED sales for the music labels from me. When the Napster of old was still alive & kickin', I could actually download & listen to music which wasn't spoonfed to me over the corporate radio waves. I discovered great music that I would never have been given a chance to hear otherwise. I'm not one who wishes to leave the artists high & dry. At the time I downloaded the music for free from Napster, I could not afford to pay for the music. However, when the time came that i COULD afford it, I gladly handed over my cash so I could support the artists of MY choice. It's just too bad that most of the dollar goes to the record label cartels, who get rich by legally robbing the very people who keep them alive. Now those cartels are demanding a minimum 26 cent raise in price for legitimate music downloads?! I've purchased a good deal of music from the ITMS, and plan on purchasing more in the future. However, this will NOT be the case if the price is raised. I will NOT spend more than .99 cents for a single track of music, especially when there is no physical storage supplied (such as a CD, tape, or 8-track). I will not support an industry whose greed is unchecked, leaves skilled and talented people broke & in ruins on a regular basis, and continues to subject people to cheap crap passed off as the best of the best.

  69. Greed. by amdg · · Score: 5, Interesting

    It's all about greed. How is it that RIAA wants $1.25 a compressed DRM song in the US but you can legally download an uncompressed no-DRM song from Russian for just $0.01 per MB?!? That means ~$0.35 per song. And if you decide to go for the compressed equivalent of what you find on the iTMS, you're talking about $0.04!! The same thing happens with the movie industry and DVD region codes. A legally purchased DVD that costs $20 in the US typically costs $2 elsewhere.

    If markets are going to normalize across borders in this new globalized "Internet age" where big businesses send our jobs overseas, they better accept that we are also going to send our dollars overseas too. That's if their lucky. I'm willing to bet that a lot of people are going to feel cheated by this new development and are going to go right back to the P2Ps that RIAA has worked so hard to get us to stop using.

  70. Allofmp3.com perfectly legal in the United States by FreeUser · · Score: 3, Informative

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

    Those doubts are quickly allayed here. allofmp3.com is perfectly legal under US law. The RIAA doesn't like it, and will tell you otherwise, but they are being no more honest than the MPAA is when it flashes those FBI warnings at the beginning of each DVD telling you you have no right to make a backup copy for personal use ... knowing full well that the law and the courts consistently say otherwise.

    The short explaination for those too lazy to follow the above link.

    1) Under US law, anyone may import any music so long as they are licensed to do so under the copyright laws of their own country. If you buy a mailorder CD from Canada and the company is licensed by either the artist or the CIAA member company, it is legal to import the CD. If you buy a mailorder CD from the US and the US seller is licensed by the artist (or the RIAA member company), it is legal. Under Russian copyright law, which the US is bound by treaty to respect, allofmp3.com has a license to distribute all copyrighted music from the Russian equivelent of the RIAA, known as ROMS.

    The RIAA may hate the fact that you can buy $0.99 iTunes songs in whatever unencumbered format you like for around $0.04 per song, but the law throughout the developed world, including the USA, is quite clear that this is a perfectly legal service to use, yes, even in Once But No Longer Free America.

    --
    The Future of Human Evolution: Autonomy
  71. Joining the RIAA Boycott by mrfett · · Score: 3, Insightful
    I guess lots of people got on this bandwagon a while ago, but I was holding out hope that things could get better for artists if the iTMS was a stepping stone for the majors to wake up and change their business practices. I'm now convinced that the only way to see change for artists is to stop purchasing music sanctioned by the RIAA. Downhill Battle just won me over. Music lovers need to support the people making music, and I think that's best accomplished by supporting the independent labels and artists.

    If you need to have a song from the majors, then download it off the net for free. Period. Downhill Battle has some suggestions for staying below the RIAA lawsuit radar when running your P2P client. But better yet, just stop listening to RIAA music and get involved in the indie scene. Make it a change in your mindset, to eschew the marketing hype and think for yourself.

  72. Question... by dJCL · · Score: 2, Insightful

    I don't know a whole lot about the apple music store, as I don't download any of my tunes these days... but do they also re-sell independent musicians music?

    Basically, If I actually had the skill to write good music, produced my own tracks and wanted to sell them for $0.99 on their site, would there be a way?

    If so, maybe apple should consider a way to promote those artists a little more then the well known ones that are $0.26 more expensive.

    Anyway...

    --
    On Arrakis: early worm gets the bird. Magister mundi sum!
  73. The reason they want to kill the iTMS... by Kjella · · Score: 5, Insightful

    ...is because non-RIAA bands can get "shelf space" right next to theirs, with previews so you can listen to, not only see an unknown name. I think they've started to see what iTMS would become, should it become successful (i.e. make a dent in physical CD sales, not biggest online shop).

    The RIAA is working very hard to keep their customers "in the dark" about other bands. Sure, the odd person may go "indie" but they don't want a mass of people to make something "indie" into "mainstream". I.e. take the "impressionable teenager that listens to what other teenagers listen to" market.

    After all, I'm sure there's more than enough music out there for me to listen to it 24/7 for the rest of my life without hearing anything twice, most of them non-RIAA (a lot of crappy ones too, but many good I'm sure). The iTMS could show it all.

    It's not the distribution channel they fear. It's the exposure to all sorts of music you can get through the iTMS. Imagine word-of-mouth going around "Check you band X on iTMS, they're really good". With instant previews, instant satisfaction, instant spreading the word, instant fame.

    Suddenly a band that never would have reached "critical mass" without the RIAA before, could make it big. Get your music up on iTMS, hit the "hip" people, the trendsetters, and you don't need a huge record contract, retail stores or a media blitz to make people hear and buy your song.

    You've got no problem with a million people suddenly wanting your song, no scale-up problems, no production delays, no distribution bottlenecks. Nothing. World-wide (well, not yet but iTMS will get there).

    That is why the RIAA will hold the online stores in a chokehold. Killing them would make them seem bad "they won't deliver what the customers want", too loose could shatter their hold on the market. Expect the DRM to become more and more anal.

    Then blame the consumer for not wanting it. "We tried to sell it online". It's perfect. They get to keep their profitable CD sales, the consumers look like the bad guys and Apple the "friendly" that really only wants to sell iPods. Which btw is quite happy as long as they're the biggest *online* shop, making most people buy iPods.

    Kjella

    --
    Live today, because you never know what tomorrow brings
  74. extortion ? by uucp · · Score: 5, Insightful

    Wait a fucking minute here. We've got 5 big media conglomerates coming together to discuss how to artificially increase the cost of their products. Exactly how is this not conspiracy and extortion? How does these actions allow for competitive market forces to drive the cost of their product to the peak price points according to the law of supply and demand? Why the fuck aren't these criminals in fucking jail where they fucking belong? Fucking anti-competitive un-American terrorist bastard dickheads. These scumbag assholes can fucking rot in hell.

    --
    Sig (appended to the end of comments you post, 120 chars)
  75. Re:True but Re:Allofmp3.com by FreeUser · · Score: 3, Informative

    AllOfMP3 and other grey market Russian MP3 sites do not pay them anything at all. Maybe, just maybe they got a few pennies from the sale of the CDs that these companies bought to master their catalogs, but I really doubt that as well.

    Not true. allofmp3.com pays royalties to ROMS. ROMS keeps a small fee to cover costs, and pays the rest as royalties to the artists. As to whether the artists get more royalties from a $0.04 cent allofmp3.com ogg or mp3 file, or an iTunes $0.99 (soon to be $1.25?) song is an interesting question. I would suspect it is quite likely the do not. Either way, the artist does get royalties, the service is legal, and the recording industry of America that has been systematically screwing artists and citizens alike for the last century is left completely out of the (profit) loop.

    Which IMHO is an excellent thing.

    --
    The Future of Human Evolution: Autonomy
  76. Another idea; call their bluff by dcavanaugh · · Score: 5, Interesting

    Apple is the most successful of the online retailers. Without Apple, essentially ALL downloading would be free P2P. If Apple says, "We will pay what we choose to pay. If you don't like it, we won't distribute your product.", what can the recording companies do about it? Their only real alternative is to lose even more money. Somehow I doubt the I-Tunes users are going to flock to competitors, certainly not the competitors who pay royalties.

    Apple must have known about the sleazy tactics of the recording industry before going into this business, surely they would have had a plan to deal with problems like this.

    1. Re:Another idea; call their bluff by Lord_Dweomer · · Score: 2, Insightful
      ' If Apple says, "We will pay what we choose to pay. If you don't like it, we won't distribute your product.", what can the recording companies do about it?"

      What can they do about it? How about cut Apple's right to distribute their music, and just let all of the other music services that have been springing up overnight vie for Apple's former position as #1.

      Apple may be the best, but don't think for a second that they have that much power. It is a very delicate balance. Apple has the goodwill of the people, the design, and currently the userbase, but the labels have the music, and they can revoke Apple's powers at any time they choose.

      --
      Buy Steampunk Clothing Online!
  77. Never Bought, and Never Will by rossjudson · · Score: 2, Insightful

    Downloadable music has exactly no appeal to me. If I can't buy the raw bits, there's no point to it. Fifteen years from now, is there going to be a new compression format? Of course. My old CDs can be re-ripped and re-compressed.

    My car player only does MP3, but AAC is a way better format. I can create both, and I can create the possible quality of MP3 for that environment.

    Raw bits let me create unprotected digital files and use them any way I want, and this is exactly what God intended us to do with information, dammit.

    iTunes -- Who Cares.

    1. Re:Never Bought, and Never Will by cmpalmer · · Score: 2, Interesting

      Well, I have only read through about 10% through the comments and someone else will probably have already posted this, but it is trivial to (a) buy a song on iTunes, (b) burn it to CD-RW, (c) re-rip the song to MP3/OGG/Whatever, (d) do whatever you want with the song (for me, it is playing it on my non-iPod MP3 player).

      I assume this is a "don't ask, don't tell" situation with Apple and the record companies -- they are selling protected songs with all of these good sounding (to them) safeguards on licensing, limited computer use, limited burns of playlists, etc., but, in reality, with one extra unauthorized step, they might as well be selling unprotected "raw bits".

      For my part, I like it. I said for years that if I could buy a legal digitial song for $1 (with no protection), then I would never really have the urge to get any by other means and I have stuck with it. Since I signed up with iTunes, that (and the purchase of two CD's that were (a) on sale, and (b) not available yet on iTunes) is the only way I have obtained music.

      --
      -- stream of did I lock the front door consciousness
  78. but what do we know? by dnamaners · · Score: 2, Interesting

    This price hike was expected. In the business world this sort of action is like more "leveling the playing field," than a "bate and switch". Tt is often possible to get coperate subsidies for new technology and such. iTunes has basically been under a year long price subsidy by the record companies. This gave them a selling advantage over CDs. However, it is not in the recordcompanies interests to stomp out its major revenue sources over night. In this case they are only adding a new one.

    Now that apple has a customer base they revoked the startup subsidies. This is common business (and political) practices. It may seem evil but it is really cold business sense. They (record companies) are politically spread pretty thin right now. As a result, thet can't afford to appear to "play sides" with any one medium.

    Technology is changing so fast that they really don't have a clue what to do to keep their business model. So for a while expect to see them promote nothing that really changes until WE decide that one course or another is required to stay in business. Their coffers are quite large and after all they had their best year ever so They can and will wait this transition out.

    *sort of like the race between the turtle and the hair.... I know the race has started but wonder which one I am, it is not at all clear yet.....

  79. CDBaby.com by vcjim · · Score: 4, Informative

    Yes, CDBaby is an a great company. My group, Dancing Baptists, is with them and they've distributed us to Itunes, Napster, Tower Records, and many others. We get a full half of our sales. For every 99 cent song we sell on Itunes, we get about 50 cents. Moreover, we sell 7.99 CDs on CD Baby's store, and we get $4.99 each. A wonderful service. Soundclick.com is also a great neo-MP3 like site, probably the most active, and does not steal the rights to our music.

  80. This would never work... by StevenMaurer · · Score: 3, Interesting

    The reason why iTunes has been so successful is because of Jobs's ability to cajole all of the labels to participate. As soon as he indicated that he wanted to compete with them, this cooperation would instantly disappear, and iTunes would become yet another service with a tiny library. Too tiny to be interesting.

    A much better solution would be for Apple to drop the one-price fits all aspect of the store. Simplicity is good, but frankly, some songs are simply worth more than others.

    In fact, if he wanted to subtly discourage overcharging by the labels, he could increase his margins on the higher end stuff. In other words: 99 cents a regular song, 4 dollars for a "premium" song. And if Labels found that these "premium" songs tended to get pirated in the P2Ps more, well, they always have the option to price them at the more reasonable lower tier.

  81. Comparison to movie sales? It doesn't add up. by prestidigital · · Score: 2, Insightful

    The price for albums and songs just doesn't make any sense to me at all. A movie, like LOTR, might cost $100 million to make, and yet the DVD will come out - with TONS of EXTRAS - for about the same or less than the cost of most newly released albums (I saw Return of the King offered for $19.95 at my movie store, while the new Foo Fighters was $18.99 at Borders). Yet, what does it cost to produce an album? I'm gonna go out on a limb and say that it isn't anything even close to $100 million. Furthermore, a DVD released today for $20 will cost only about $10 just a few months after the initial release. Meanwhile, the Beatles White Album still costs something like $30 a full 20-some YEARS after it was released. One could argue that most of a movie's revenue is generated in theaters, and that albums don't have that same kind of outlet (concerts are significant added costs to bands & labels, while movie theater distribution probably doesn't cost movie makers much extra). But still, there are thousands of radio stations paying royalties and the cost of making an album is dramatically less than that of making movies.

  82. Don't trust the Post by CaseCom · · Score: 3, Informative

    This is the New York Post, folks, the same paper (and same reporter) who a couple of months ago claimed that Microsoft was trying to buy AOL from Time Warner -- a story that went nowhere and was picked up by no other major news organization.

    I'll believe this when I see it.

  83. The NYP is on crack... by ajservo · · Score: 2, Interesting

    http://www.macminute.com/2004/04/28/itunescall

    Jobs specifically quotes that songs are staying at the $.99 level... This was addressed last week out of the fact that this story about the RIAA is 2 weeks old...

    And BTW, if you complain about the new pricing structure for iTunes... The terrorists will win...

  84. TIM ARANGO is full of FUD by amichalo · · Score: 2, Interesting
    The guy who wrote the Post article is terribly biased in my biased opinion.

    He wrote that:
    some of the usage rules - such as how many times users can burn downloads - have been altered.
    Thanks for stating this in a way that does not make it obvious there are still unlimited burns of any song...and also a big thanks for not mentioning the loosening of the restriction of # of PCs & Macs music can be shared on.

    In addition, Timmy shared that:
    For example, a Pepsi marketing campaign announced last year that was supposed to give away 100 million downloads has resulted in only 5 million downloads by Pepsi drinkers, according to a source.
    The implication is that iTunes was not something people were interested in.

    There are other examples of his FUD statements, such as covering Sony's new service without the mention of their restrictions (if you own a MiniDisc player or MemoryStick music device raise your hand).

    And finally, this gem:
    A spokesperson for iTunes was not available for comment.

    Apple's willingness to allow some singles to be priced higher than 99 cents indicates the company feels empowered by its current success in the download market and sees a chance to boost profits from the sales of digital music.
    Got a source for that one Jimmy? Steve Jobs was just quoted refuting such a statment.
    --
    I only came here to do two things; kick some ass, and drink some beer...looks like we're almost out of beer.
  85. Wal-Mart v. RIAA by ElPresidente1972 · · Score: 2, Interesting

    I for one would love to see a fight between Wal-Mart and the RIAA. The RIAA can force Apple to raise prices because Apple is comparatively small. Wal-Mart, IIRC, is selling for $0.88 / track, and Wal-Mart is the world's biggest corporation. I'd love to see a fight between those two.

    Then again, we may wind up with a market flooded with cheap Chinese music.

  86. Sony wants the price up by mpost4 · · Score: 2, Interesting

    I think the only reason Sony wants the price on iTMS up, is so that they can be cheaper, then they will go out and advertise they are the cheapest.

  87. Tom Petty predicted this... by Whizzmo2 · · Score: 2, Interesting
    Tom Petty saw this coming a long way off. Most of his last album ("The Last DJ") was a daring thrust at the (very black) heart of the music industry.

    An excerpt from the title track:
    As we celebrate mediocrity all the boys upstairs want to see
    How much you'll pay for what you used to get for free
  88. You've got it all wrong... by rsilvergun · · Score: 4, Insightful

    They're trying to get people used to paying CD prices for downloaded music so they can phase out CD sales all together, thereby significantly curtailing the trade in mp3s, reducing their distribution costs to nil, and gradually moving people to a pay-per-use model for content consumption. It's the Entertainment Industry's Holy Grail. The IRS taught us long ago you don't hit people up for a ton of money up front, you take it from them bit by bit.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:You've got it all wrong... by object88 · · Score: 3, Interesting

      Personally, I just don't buy single-CD albums for $16.99. And I'm sure as hell not going to buy a single-CD's worth of MP3s for that much.

      With the popularity of stores like Best Buys and Walmart, where the new CDs are something more like $11.99 to $13.99, is anyone actually paying that high of a price?

      So, it seems to me like this is more of a move to kill off or injure iTunes.

      Aside, I often see older, back-catalog CDs selling for those prices. I always figured it was because the record industry thought that anyone who was going to buy them was diong so because they really wanted to get that album, and therefore they could milk the customer for more. As compared to the "new hit" CD, which I suspect people buy en mass because it's cool, hip, and now.

    2. Re:You've got it all wrong... by nettdata · · Score: 2, Interesting

      I'm not sure that they want to get rid of the physical distribution.

      Here in Canada, there are a couple of record companies that have invested HEAVILY in the manufacturing and distribution of the CD's, so much so that that's where they make the lion's share of their profit.

      I'm wondering if this move isn't to make the online downloads more prohibitive, making physical sales more appealing to the end user.

      --



      $0.02 (CDN)
    3. Re:You've got it all wrong... by haystor · · Score: 4, Interesting

      The real reason is because a $16.99 album download is not properly compared to a $16.99 cd. The *real* comparison is between a $16.99 cd and a $.99 download of the single track that is worth a damn.

      People might be willing to jump straight to full cd price if the single track costs $2.50.

      Personally, I'm liking the radio more and more. Go WRR!

      --
      t
    4. Re:You've got it all wrong... by Anonymous Coward · · Score: 4, Insightful

      The incentive is that the big record company provides marketing. People here love to write them off as completely useless, but without marketing and radio payola, your fanbase remains small and local. You have to take a day job to get by, even if you are supremely talented as a musician. This is the one and only useful service record companies provide (or will be, as internet distribution starts to really take off). If they charged a reasonable fee for this and let the market set prices, they would be cool. Instead, they are evil incarnate, but not TOTALLY useless.

    5. Re:You've got it all wrong... by Lord+Dimwit+Flathead · · Score: 2, Interesting

      I'm inclined to agree. The record companies are used to being in complete control of the industry as a result of the high barriers to entry (recording studios, production facilities, distribution networks, retailer and broadcaster covenants, etc.) The networked digital world removes or severely degrades every one of those barriers, which largely invalidates the business model of the traditional recording industry. I'd be scared too, if I were them.

    6. Re:You've got it all wrong... by AvitarX · · Score: 3, Interesting

      Loans for marketing if you want to make it "big" are a reason to go through the RIAA. Even now you can make a living without the RIAA (ie Fugazi).

      The labels will still be able to make a band big. It will just mean the little guys have totally even footing. But if you want to be a successful little guy now it is possible.

      In my area it is relatively easy for a band to pull 1200 a week in shows (4 shows at 300). thats 300 a person there, then you sell your CDs at 10 dollars a piece for a 7 dollar profit. Thats 370 dollars a person a week, not big money but more then minimum wage. and it still allows for a part time job. Also some creative tax work, like only reporting 300, or 250 (which is minimum wage here) a week and keeping all those receipts for equipment and you are doing Al right. If you try at all you can get a couple shows bigger then that without going too far away too. Cost of living here is not that high either, 20,000 a year is not good money but it is survivable.

      For somebody with talent playing anything that people will listen too (main stream punk, country, blues, bluegrass, heavy metal, rock, covers) there is definite potential to survive without the record company.

      Much harder is finding like minded people who don't want to make big money with their music, but want to do it for a living.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
  89. Legitimate Article? by kudsak · · Score: 3, Insightful

    Has anyone else noticed that the NY Post article has an element of libel to it? They cleary state that an album by N.E.R.D. costs $16.99 on the iTMS, when it only costs $13.99, last time I checked. It seems that whoever wrote this article didn't take the time to verify simple facts. Can the rest of it be trusted? It seems unlikely to me that 10 after saying that single prices will not rise, Apple would raise them.

  90. Not sure this is explicitly about greed... by Anonymous Coward · · Score: 5, Insightful

    RIAA members make money by casting nets throughout the distribution networks they control utterly through means of their cartel.

    New methods of distribution are a grave threat (literally) to their necessity, which in both business and nature is a swift road to extinction - unless those streams either emerge under strict controls, or are addressable through business or legal tactics.

    Internet music distribution is a bear of a problem to these people. There is no specific competitor to be bought out or sued, or specific technology to buy into; the fight against Napster underscored this point clearly.

    Furthermore, their entire livelihood - marketing and distribution of music - has morphed over the past decade into obsolesence. "Push" marketing - the only kind RIAA members know about - never fails to fail on the net, and "distribution management" is something that software can handle with far less overhead than RIAA is demanding from artists in meatspace.

    RIAA supporting music downloads is like Bush campaigning for Kerry. If legal music downloads take off, RIAA dies. It isn't any more complex than that. The net undermines all of their profit schemes.

    Notice how popular legal music downloads are getting? If they get too popular, who'll need RIAA? RIAA has been pushing against illegal alternatives, so they can't very well opt out without validating most every argument put against them as to their motive. So what other option do they have to curb the burgeoning frenzy? If legal downloads make overall music sales go up, what reason will they have to petition Congress or judges?

    IMO they're trying to make downloads so unattractive an option that most people either go back to illegal downloads or CD buying. In the case that it fails to stop legal downloads or increase CD sales, they still make a lot of money. It's a no-lose plan.

    1. Re:Not sure this is explicitly about greed... by Anonymous Coward · · Score: 4, Insightful

      IMO they're trying to make downloads so unattractive an option that most people either go back to illegal downloads or CD buying. In the case that it fails to stop legal downloads or increase CD sales, they still make a lot of money. It's a no-lose plan.

      Remember, they've been harping about the decline in CD sales for a few years now (while releasing less records). As music downloading continues to climb, both legal and illegal, they will see CD sales slip even further.

      Once CD sales slip further, they get to go Congress and bitch/whine/moan about 'pirates' and push through more DMCA-style laws (mandatory DRM laws come to mind). Congress will bend over backwards because of all the bribes^Wcampaign contributions.

      Part of this whole system is making sure legal Internet downloads don't get too popular. If they do, that can be used as an explination for a decline in CD sales. This is the LAST thing they want.

  91. Yeah, actually... by kitzilla · · Score: 4, Interesting
    Aren't you glad you starting paying for downloaded music?

    Yeah, actually. It means I can legally purchase music per-cut, rather than spending money on tracks I don't want. It's fun and convenient. I'm filling the holes in my library, and I don't worry about a Dear John from the RIAA.

    That doesn't mean I like the idea of a rate hike. But pricing is a separate issue from the bigger question of whether or not labels and artists have the right to expect payment for their work.

    I'd possibly pay $1.25 a cut, but it would likely cut down on the number of transactions I make. I buy few albums through iTunes. $16.99 is too much, given that one might find a new CD cheaper than that price. Better to shop around and be able to rip a superior copy if I want the whole album.

    It would be great if Apple begins to offer iTunes downloads in their new lossless codec. Would make me feel better about a price increase.

    --
    This is my post. There are many others like it. If you don't like what you read here, go try one of the others.
  92. You've got it all wrong... by Anonymous Coward · · Score: 3, Insightful

    They're trying to get people used to paying CD prices for downloaded music so they can phase out CD sales all together, thereby significantly curtailing the trade in mp3s, reducing their distribution costs to nil, and gradually moving people to a pay-per-use model for content consumption. It's the Entertainment Industry's Holy Grail.

    And when distribution costs are nil, what incentive will there be for any content producer to go through an XXAA member to get their art on the market?

    When distro costs are nil, what's to stop minor-league competitors from jumping in and offering less-restrictive competition that would be more attractive to consumers and therefore producers?

    Distribution is RIAA's raison d'être. Monopoly control over it is the only reason any producers put up with the majority fees on sale, the content manipulation and other bullshit. When they lose that, the house of cards comes down, DRM or no DRM.

  93. This is how the RIAA plans to kill competition by beforewisdom · · Score: 3, Insightful

    By forcing Apple to raise its prices to be compatible with store bought CDs the RIAA plans to kill its competition and piracy.

    If downloading music costs the same as a store bought CD ( or more ) most people will let the record companies do the work and give them a nice
    "store bought" package.

    End of legal downloadable music.

    Additionally, by temporarily allowing legal downloadable music to flourish ( in combination with their lawsuits for illegal downloading ) they have moved many people away and out of the habit of stealing music over the internet.

    If more people start stealing music over the internet again the RIAA can play martyr with an improved public image. "Hey, we let legal downloads happen and these people insist on stealing anyway".

    Steve

  94. Re:Good lord... by PeelBoy · · Score: 2, Funny

    Good Now we no how to push You're buttons

  95. Indie iMixes by Refrag · · Score: 2, Interesting

    The best way to combat the RIAA is through iTunes' new iMix feature. Create indie mixes and rate indie mixes so that people will easily be able to identify good music that doesn't benefit the RIAA.

    Here are a few:

    indie goodies
    Another Gallery of Rogues

    I'm fairly certain all of the music on these are indie. If not, let me know. But, more importantly, respond to this message with links to other indie-only iMixes!

    --
    I have a website. It's about Macs.
  96. Apple Corps by BlightThePower · · Score: 2, Informative
    Apple Corps was started in 1968 as a spin-off company for the Beatles musical and non-musical ventures. Apple Corps is today run by Neil Aspinall and owned by Paul McCartney, Ringo Starr, Yoko Ono and (presumably) the estate of George Harrison.

    Its not really a record label, rather its the umbrella organisation for both the Beatles non-musical business interests and today it controls their image, name, trademarks etc (if not their songs, which were held by Northern Songs (L&Mc) and Harrisongs (GH)).

    I've very much McCartney and Starr would sell control of their image to Apple, nor would Yoko Ono or the estate of George Harrison be willing to part with rights to their portrayl either.

    --
    Plays violent online games as: Nerfherder76
  97. Apple has officially denied this "rumor" by xyankee · · Score: 5, Informative

    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

  98. Re:Washington Post is right winged, Jobs is a libe by smc13 · · Score: 2, Informative

    The article was from the NY Post not the Washington Post, and the Washington Post has a left wing slant though it is a really good newspaper. Maybe you are thinking of the Washington Times?

  99. RTFA by BlueTooth · · Score: 2, Informative

    Prices are only going up on more popular tracks.

    --
    SPAM
    1. Re:RTFA by dresgarcia · · Score: 2, Insightful

      depends which article you read, actually. . .

  100. Re:Do NOT pay for downloaded music. by glenstar · · Score: 2, Interesting
    Until a method of downloading music that is fair to consumers and most importantly artists comes along, I will never ever buy anything from iTunes or Napster or any of the other ones.

    What would you, Mr. Coward, consider "fair"? Seriously, I am very curious. Cheaper prices? Better interactivity? Better selection? Exposure to artists outside of Britney, et al?

    This is not meant to be flippant... what would your ideal music download site look like?

  101. Oh, who didn't see this coming? by Fierythrasher · · Score: 3, Insightful

    I have yet to pay for a single song on-line. It's rediculous. Look at the facts: 1) It's limited to the number of times you can copy it (thus breaking the benefit of digital media). I replace my computer once per year, so that means the songs I'd buy have at best a five year experation date. 2) They cost as much as CDs (and with this price hike they cost more). So I get 5 years of a song, no cover art, no good back-up options, and I pay more? The music lables are killing themselves and I sit back and laugh. Issue "remaster" after "remaster" and then flop like dying fish with SACD and DVD-Audio (which would be even more re-issues). THe record labels could make MORE money by using on-line distribution at a lower price point. Make the songs cheap enough (say $0.50 each?) and people will buy them. Remove copy protection and, sure, people will share them with their friends but that is how music has been for decades. Who never dubbed a cassette in the 70's or 80's for a friend? Who never burned off a CD in the 90's? Trading music small-scale allows people to be exposed to music they would not be otherwise, and then those people may buy OTHER tracks. By avoiding the profit-sharing distribution method of shipping CDs to Best Buy, and reducing the cost by not having to press CDs, pay photographers and artists for cover art, etc. the record labels can save butt-loads of cash. Reduce the cost per song, make even more money. But no, they'd rather do stupid crap like this. I'm glad to see their monopolistic tactics are working about as well as shooting themselves in the foot. I, meanwhile, laugh heartily and visit my locally owned used CD store reguarly.

  102. Re:Please... kill me now...WAIT NOT SO QUICK! by Delta-9 · · Score: 2, Informative

    Apple has denied that there will be any price increase, and furthermore, they are in multi-year contracts with the different record labels such that the price is locked at $0.99 for at least a couple more years.

    Good News you don't have to die.

  103. The Post is hardly a bastion of good reporting by admiralfrijole · · Score: 2, Insightful

    dont forget we also heard about the McDonalds Billion Song Gveaway from the upstanding NY Post. Not to mention that in the past year we also heard that Apple was about to buy Universal Music. I call BS on this.

    --
    e to the pi i plus one equals zero
  104. Re:Allofmp3.com perfectly legal in the United Stat by druske · · Score: 2, Insightful

    There are some songs on allofmp3.com that aren't available on iTunes, so it's very tempting... but...

    Is there any reason I should think that Museekster.com has any credibility? IP law is a convoluted mess right now, and this guy doesn't exactly sound like a lawyer. I also couldn't help but notice the disclaimer on the site:

    "...The author reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect,will therefore be rejected..."

    Pretty standard fare given our lawsuit-crazed society, I suppose, but still...

    That allofmp3.com offers Beatles and Metallica albums seems troublesome, too, and I'm not sure that the explanation put forth by Museekster.com holds water:

    "...The Beatles and Metallica have not authorized their music to be sold online for anyone. Yet Allofmp3 offers about any Beatles and Metallica album ever released.

    There are two reasons:

    • Foreign works released before 1973 are not protected in Russia. Russia signed the Berne Convention without the retrospective protection.
    • The second reason is that under Russian law a collecting society like ROMS automatically has the right to license ANY intellectual property to Russian distributors, even if the author is not subject to Russian law.

    This explains why Allofmp3 can offer music that is not licensed for downloading in the US and Europe, like music by The Beatles or Metallica..."

    Uh... okaaay...

    I'd like to believe this is all nice and legal, but the cynic in me can't make the leap. (Damn!)

  105. Flatly denied by Apple today by Infonaut · · Score: 5, Informative
    This update from Yahoo says it all. Apple is flatly denying that there will be any price changes.

    --
    Read the EFF's Fair Use FAQ
  106. Re:Sony still 99 cents? by DynaSoar · · Score: 2, Insightful

    BiggerIsBetter (682164) sez: "Isn't Sony in the RIAA too? Isn't that like some sort of conflict of interest?"

    Not the way Sony sees it. Sony sees funny.

    Back in the early 80's, Sony was one of the companies that wanted a "tax" on cassette tapes, to make up for the money they "lost" (more accurately, failed to make) due to people taping albums.

    They wanted me to pay more for my Sony tape that I used in my Sony tape deck to record my Sony albums by Sony artists. They saw nothing wrong with this. Luckily, others did.

    --
    "I may be synthetic, but I'm not stupid." -- Bishop 341-B
  107. Re:Make RIAA irrelevant by gaijin99 · · Score: 2, Interesting
    So sending money directly to the artist will in many cases not actually be paying the "owner" of the song.
    So what do I care about the "owner" of the song? The whole argument so far has been about paying the creators of music, not the "owners" of that music. Screw 'em. I buy Dropkick Murphy's merchendise [1] because I like their music and I want to give them money, I really don't give a damn if someone other than them technically owns their music.

    If the music labels want to start whining about the non-musician "owners" not getting paid, I think they won't get much sympathy. We can all see the benefit of paying artists to continue producing art, but paying parasites like Hillary Rossen [2] isn't somehting that most people think is important. She wants money, let her start singing. Otherwise, screw her and every member of the RIAA, they've screwed us often enough.

    .

    [1] Just as an example. I'd support more punk bands if more of 'em had bagpipes...

    [2] The president of the RIAA, who wrote a fascinating piece about how the poor RIAA isn't making much money off $16 CD's. Read it here.

    --
    "Mission Accomplished" -- George W. Bush May 1, 2003
  108. For all you non-accountants... by ProfessionalCookie · · Score: 2, Insightful

    The brackets around $0.01 mean it's negative- which explains why $0.99-$1.00=($0.01). Usually you use angle brackets but that basically means the artists owe $0.01.

  109. Re:Make RIAA irrelevant by gaijin99 · · Score: 3, Insightful
    I'm just pointing out that sending money to the artists for downloading music doesn't do any good because so many artists don't actually own rights to the music.
    I can't see your argument here. The musician produced the music. I send the musician money. Any side deals involving the rights to the music don't actualy affect the fact that the musician got money from me for his music. How is this not doing any good?

    --
    "Mission Accomplished" -- George W. Bush May 1, 2003
  110. Weirdness of Supply and Demand by ThosLives · · Score: 4, Interesting
    ...theres no media costs, this is simple pricing in reaction to rising demand.
    While this would be the case in classical systems, this makes no sense for the RIAA based on the following observations:

    1. There is already lots of pirating because people think that the store prices for CDs are too high.

    2. My guess is that the slope of the demand curve for purchased online music is really high and quite nonlinear; my guess is that any price increase will dramatically lower the demand for purchased music (because it's just as simple to download a clandestine copy) while lowering prices will increase demand at some more measured pace. (This is opposed to gasoline, where huge changes in price have little effect on demand, at least in the current range of prices. In the US.)

    These observations lead me to believe that folks need to do some updated thinking about economic theory and products/services which have basically no implementation cost. There has to be a reason for someone to pay for something, and when you have (effectively) instantaneously delivery of digital content at potentially zero price, it's quite difficult to build a business distributing music (I would argue there is still a lot of room to create music - the RIAA has never been in the business of creating music though, which is why they are upset. Their entire business model of music distribution is falling apart).

    Anyway, I suppose that if they raised prices they would quickly find out that demand would plummet. In this instance, what would happen is that they would probably kill iTunes rather than rake in more money; my guess is that even if they forced *every* provider to raise prices they'd just lose volume. (This is because if there is any one provider with a lower cost, the lack of barriers on the internet would quickly shift all business to the lowest-cost source. The one hiccup here is, of course, the iPod, which definitely complicates the analysis.)

    That's about all for today on this, I think...I'm sure I didn't cover every facet, but we're still in the early stages of the Intellectual Property Revolution.

    --
    "There are a dozen opinions on a matter until you know the truth. Then there is only one." - CS Lewis (paraprhase)
    1. Re:Weirdness of Supply and Demand by Scudsucker · · Score: 2, Interesting

      But it wouldn't matter if an album cost five bucks, downloading is cheaper

      Of course it matters. Its not so much a matter of price or legality, but of convenience, as downloading stuff from the net is only free if your time is worthless. If the record industry makes it worth your while to hunt an album down because they charge way to much (i.e. the recent NERD cd for 16 bucks) then you'll do it. If you want it, don't want the hassle of searching through incomplete/mislabled/fake songs, then you'll buy it, if you have a guaranteed download for a resonable price.

      Sure some people will download stuff from kazaa no matter how low the songs are priced at, but those people wouldn't start buying music if the entire Internet was nuked tomorrow morning.

  111. Re:Make RIAA irrelevant by sweetooth · · Score: 2, Interesting

    I can't see your argument here. The musician produced the music. I send the musician money. Any side deals involving the rights to the music don't actualy affect the fact that the musician got money from me for his music. How is this not doing any good?

    If you want to buy a house you can't just find an empty one, send the builders (construction workers, not contractors, construction firms etc) money if the house is actually owned by a bank. Sure, you paid the creators of the house but they have most likely already been paid for that work.

    Music is often the same way. A lot of music is created as a work for hire. The musician gets an advance to create some music. The advance goes to pay for the production, and then the artist keeps whatever is left. The label then keeps money from the sales of that music to recover the cost of the advance and any other funds they have laid out. The label then profits if the revenue from that music is greater than the initial outlay of cash. Now the issue isn't nearly that simple and there are royalty payments and other things to consider. Yes, many labels don't pay fairly when it comes to royalties, and don't accurately report the earnings so they don't have to make royalty payments. This is an issue that needs to be resolved between the artists and the labels. When an artist transfers ownership of music to a label they have been paid for the work. Just as the builders of the house have already been conpensated for doing their jobs.

    Sure, the analogy isn't perfect, but intellectual propery is considered to be exactly that under our laws, property. Sending an artist money might help the artist that is getting screwed by their label, but then they shouldn't have agreed to a contract that screwed them. The only way to get the labels out of the loop so they can't screw artists or consumers is to get the artists to stop giving away ownership of their art. Then we can pay the artists directly and show that we don't need the labels and if they want to survive they need to change their business plans. That's why just sending money to the artists doesn't do any good. It puts a few bucks in the artists pocket, opens you up to liability for basically admitting to copyright infringment (unless you don't specify why you are giving the artist money of course), and fails to actually effect any change on the system.

  112. Re:True but Re:Allofmp3.com by nordicfrost · · Score: 2, Interesting

    I call bullshit!

    ROMS is the equal to our (In Norway) TONO. They collect money from radiostations, TV channels, concert venues, restaurants, bus companies, pubs, inf fact every place that dares to play a record they bought.

    TONO is a reedy organisation, that even demand that commercial websites pay 11 cents PER CLICK! for ANY music played, even if that makes most web-enabled music event go in instant red. Result: No-one plays music in web video, and TONO gets NO mney.

    A good friend of mine pays to be a member of TONO. Their band have been played a lot in radio, but so far the fee has been greater than the earnings.

    Enteties like ROMS and TONO exists for ONE purpose only, to earn enough to keep it self alive, along with a portion to the already-lots-earning artists and record companies.

  113. Dynamic Pricing by jinxidoru · · Score: 4, Interesting

    Pricing for new music should be high, older stuff could be much lower. If older stuff would be priced less (in any format), I'd buy a ton of music, but right now I don't bother.

    This is a great idea. Something that would work great is something I saw in a video arcade once. The games were modified coin-ops so that you swiped a card, which you could put money on at the counter. Each game varied in price, in such a way that the price was based upon the frequency of play. So the older games were cheaper because people didn't play them as often, but if you started playing it a lot, the price might increase 1 or 2 cents per play. It made sure the price was right for every game.

    Apple should do something similar. The price of a track would start at a predetermined amount. As more people purchased the track, the price would slowly increase based on some formula. The price would eventually level off at a fair price. The other great thing is that lesser known tracks would drop in price and more people would be willing to buy them. So how about it Steve? Are you going to hire me now?

  114. They have 0 debt and 4.6 billion dollars cash. by MacDork · · Score: 2, Informative
    They could easily buy "The Beatles", although, they'd probably just buy the Trademark and be done with it.

    In regard to the record companies wanting a price hike, here's my theory. Raise prices, kill all the online stores and hire a few developers to replicate what has been done already. When you're a monopolist, you think like one.

    • The record industry already has an antitrust exemption that allows record companies to jointly negotiate royalty rates for digital distribution. Late last year, the music industry convinced Sen. Orrin Hatch (R-Utah) to insert language into the EnFORCE Act (Enhancing Federal Obscenity Reporting and Copyright Enforcement Act of 2003) that would extend that exemption to "physical product configurations" such as CDs. That bill is still in committee.
    That's legalized price fixing, courtesy our good buddy Orin Hatch. With Apple in the middle, they're losing their grip on distribution and they know it. That's why they are asking the industry for a "standard format" of copy restricted music. They want to know what format their portable player should support, and what brand of file to include on their double sided crypto disks.
  115. Re:Allofmp3.com perfectly legal in the United Stat by gumbi+west · · Score: 2, Informative
    Wait, wait... let me guess. you also think that you don't have to pay income taxes, right?

    Read the Register article that is linked from the musketeer article (it says that it is not legal in western countries), and yes, this is forbiden in the us 17 USC 106 may be an informative read for you.

  116. Re:I'm waiting for the retroactive price increases by pherris · · Score: 2, Interesting
    Yes, the US Constitution. Changing the terms of an agreement retroactively (as in affecting items of business dealt with before the change), is illegal and would never hold up in court even if if written into the EULA.

    You've assumed that it is not already in the current contract between Apple and the various RCs (recording companies). What if there's a clause that allows for a retroactive price increase if, say, the original royality fee structure was incorrectly calcutated? You and I know that if the RIAA/RCs used this (posssible) clause it's just to make some more money, not to correct a mistake. IMO it would also piss Jobs off and he is truly one man you don't want to piss off. For Jobs "job one" is protecting the name of Apple. It's his child. A retro price increase would most likely kill off iTunes in a week.

    In addition, iTunes doesn't phone home each play, only for the first authorization so they can't really lock you out of your collection of songs you've bought. The iTunes Music Store is a STORE, not a subscription service. Just like Apple killed off streaming out of your subnet (active in iTunes 4.0, dead in 4.1 and they didn't say they were killing it off) so could apple require all music to be reauthorized. Again, Job's loves Apple and I don't see him doing this unless under agreement.

    My attitude to iTunes is simple: I continue to buy music and I will continue to burn all my music on music cds and back up my AACs. If (unlikely but possible) they do the above I'll just stop using them, enjoy what I have and continue downloading GD and Phish concerts (which are legal to download and share for noncommercial purposes).

    --
    "And a voice was screaming: 'Holy Jesus! What are these goddamn animals?'" - HST