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Would You Pay 5 Cents For a Song?

irikar writes "An academic at McGill University has a simple plan to stop the plague of unauthorized music downloads on the Internet. But it entails changing the entire music industry as we know it, and Apple Computers, which may have the power to make the change, is listening."

19 of 905 comments (clear)

  1. Yes by XMyth · · Score: 5, Funny

    Yes, I would pay 5 cents a song and I currently do thanks to some kind Russians. =)

  2. I will stop downloading by REBloomfield · · Score: 5, Insightful

    When the record companies sell what i want to hear. everything i pulled off of napster back in the day was 80's rock and metal stuff that has been discontinued. For god sake guys, put your back catalogues on line, (or even press a cd or two on demand) and then we'll talk. :(

    1. Re:I will stop downloading by Qzukk · · Score: 5, Funny

      But if they did that, they wouldn't be able to sell "Now Thats What I Call Ancient Shit! Vol 4124"

      Won't someone think of the executives?!

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
  3. You can forget the "stealing tax" by bigtallmofo · · Score: 5, Insightful

    In addition, a 1 per cent sales tax would be placed on Internet services and new computers -- two industries that many argue have profited enormously from rampant file-sharing, but haven't had to compensate artists.

    This is the same scheme that we have today on blank CDs and the like and it is total BS to apply it to computers. I have no idea why anyone outside the entertainment business thinks that it's OK to put a music-stealing tax on every computer, or DRM on every computer when not every computer is even considered for such use. What about the company that buys 10,000 computers per year and because some 12 year old is "stealing" music they have to pay an additional tax and further have to have their computers crippled with DRM?

    --
    I'm a big tall mofo.
  4. No matter what free will always win...dead end. by Anonymous Coward · · Score: 5, Insightful

    "Just a FYI Apple, no matter how cheap something is it is NEVER as cheap as free. Free will always win out."

    Until there's nothing left to be free. Then free loses badly.

  5. No, no and no! by Sebby · · Score: 5, Insightful
    I stopped reading when I got to this sentence: "In addition, a 1 per cent sales tax would be placed on Internet services and new computers"

    No, no and fucking no! I refuse to finance any industry which I don't have anything to do with.

    When I buy computers for my business, I don't buy them for anything music-related, so I see NO reason to pay a tax, or levy or whatever the fuck they want to call it to support any music-related thing.

    I'm tired of corporations and government thinking society exists for the sole purpose of ensure their profit.



    --

    AC comments get piped to /dev/null
    1. Re:No, no and no! by pg110404 · · Score: 5, Interesting

      Canada just recinded a 3 or 4 year old blank cd media tax.

      Up here, lobbyists pressured the gov't to tax blank CD media which would then be handed over to the music industry. Their reason: people will steal music no matter what, so let's just obfuscate the the music industry's perceived profits by making people pay for it one way or another.

      A few years back ontario deregulated the hydro and within the first year, some people were paying 50 cents per kilowatthour (average is about 6 cents) and their hydro bills were astronomical at the peak of the summer. Later, the ontario gov't put a cap of 4.7 cents but the balance was paid for by our taxes. It was a kick in the balls and a pat on the head move and is not going to be the last.

      Whatever happened to the days where companies stood or fell on their own terms, and not propped up by the handouts of some third party such as the gov't?

      As a democracy, I say we all rise up and quell any further stupid shit that spews forth from our parliament/congress/whatever. I say we bring back the gillotine.

  6. Laffer Curve of file sharing. by Vengie · · Score: 5, Insightful
    Basically, he's saying that "If you sell x songs at 99 cents a song" and that "If you drop the price to 5 cents, you will sell more than 20x songs" -- he claims the growth could be "exponential."

    To a certain extent, he's somewhat right. It would substantially lower the bar and you'd have far more impulse buys (and drunk song-buying binges wouldn't hurt as much. Fear the drunken one-click shopping spree!)

    However, I am not such a big fan of his idea of taxing PCs. However, the last line of the article is THE MOST INFORMATIVE OF ALL:
    Then again, another record-industry type, casually speaking to Pearlman after the talk, had perhaps the most succinct counter suggestion. Why not charge 10 cents, instead of 5, and double the revenue?


    These guys don't even get *OLD ESTABLISHED CONCEPTS* let alone "new fangled concepts." Pearlman's response is that if you double the price, you cut the sales by more than half, so you actually DECREASE your revenue.

    They just don't get it. [I'm not saying Pearlman is necessarily right with the .05$ price point, but the "industry type" missed the entire point of the talk!]
    --
    When in doubt, parenthesize. At the very least it will let some poor schmuck bounce on the % key in vi. (Larry Wall)
  7. Re:No matter what free will always win... by Henry+V+.009 · · Score: 5, Insightful

    Their bean-counters decide that well if we can make billions selling songs for .05/download we could make 10x as much if we sell them for .50/download and 20x as much if we sell them for .99/download. Unless their bean-counters have taken Econ 101 and know the most basic things about supply and demand. As you increase price, you decrease volume. There is always a sweet spot that maximizes profit.

  8. Re:No matter what free will always win... by Migrant+Programmer · · Score: 5, Insightful

    Their bean-counters decide that well if we can make billions selling songs for .05/download we could make 10x as much if we sell them for .50/download and 20x as much if we sell them for .99/download.

    Please look up the term "elasticity" in your friendly neighbourhood economics textbook.

  9. Comment removed by account_deleted · · Score: 5, Interesting

    Comment removed based on user account deletion

  10. Re:No matter what free will always win... by jigoman · · Score: 5, Insightful

    While you're completely right that nothing beats free, you can't deny the number downloads iTMS has garnered since its start. While free music will always be available, don't underestimate the 'guilt-free' factor. A clean conscience for 5 cents/song is about as good a deal as you can get.

  11. Free doesn't always win - Re:No matter what ... by jackDuhRipper · · Score: 5, Insightful
    Getting music is only "free" if your time and effort are worthless: if it's easier, faster and of higher quality to get the new Beck record from iTunes , it's worth it to purchase legitimately than to try and get it other ways.

    Much like the scheme presented in the article, please remember that the "free" file sharing networks requires a broad base of participants to make them run. The utility of the "free" networks improves or deteriorates based on the numbers of people engaged in the activity of sharing freely:

    even at US$.99, I would bet there has been an affect on the quality/quantity/availability of music on the "free" sharing networks. Presumably, that would deteriorate further if "legitimate" online services appealed to an even broader audience (as some or all of that broader audience would likely participate less in the "free" networks).

  12. Re:The artists make very little money from music s by EspressoMachine · · Score: 5, Informative

    They get like maybe 1$ per cd.

    If only that were true. Artists generally make $.05-$.12 a CD. If you want more info about the industry and contracts, etc., I highly recommend This Business of Music. It's chock full of interesting details like formulas used to determine artist royalties. For instance, did you know the labels still take money for R&D costs on the "new technology" of the Compact Disc? Or that many still take out $$ to cover "breakage", which is a hold over from distribution of albums on vinyl?

    Oy.

    --
    Despite conventional wisdom, I've discovered you can blame a guy for trying. It's called "attempted murder".
  13. Re:No matter what free will always win... by beakerMeep · · Score: 5, Funny

    Well if you would take Pizza Eating 101 you would learn that I can eat many, MANY pizzas.

    --
    meep
  14. Re:No matter what free will always win... by Skye16 · · Score: 5, Insightful

    There are independent studios that you can record at as well. And yes, they CAN come out sounding really damn good when it's all said and done. Would Britney Spears be able to do it, if she had no money and was just starting? No. But someone who relied on instrumentation and vocals from within the band COULD do it, quite easily. I have TONS of music for you to listen to that sounds wonderful (even if it isn't what you particularly like) that is done independent of anyone. I even have some stuff of two guys who did much of it in their LIVING room and it sounds superb (if you're interested in hearing THAT, go try out Pinback - Microtonic Wave or "B"(Offcell EP) on Launch - if you don't like the music itself, that's fine, but focus mostly on the quality of the production).

    It can be done. It may be more work on the part of the musicians, but it's also cheaper. The only thing that would be prohibitively difficult would be in the distribution of physical CDs (but I guess that's where Amazon comes in, eh?). And when you get to the internet...shoo. It all comes together there.

  15. Re:Yep. And it is called.... by HuguesT · · Score: 5, Insightful

    The point is that the RIAA aren't a monopoly any more. They are competing with "free" downloads.

    The other points are that "free" downloads are not free. You need to spend time searching for songs, wading through the crap, learning new tools as the RIAA fight the old ones, and there is a risk of getting caught, etc.

    The final point of the article is that legal music distributors can regain the advantage if they offer a cheap, quality service as a competition to the eDonkeys of the world.

    Hence there is competition going on, and as long as the RIAA doesn't understand it at that level, the situation will not improve for them.

  16. Re:No matter what free will always win... by Tree131 · · Score: 5, Interesting

    cheap goods are made for cheap people

    There is a saying that goes something like this:
    I'm not rich enough to buy cheap things.

    Even though cheap goods are made for cheap people, it's a false sense of cheap, because the cheap good will inevitably break, forcing you to buy another one and another one, when for the same amout of money as 2 or 3 cheap goods, you could have bought a more expensive high quality good that would last you a lot longer than 3x lifetime of cheap good.

    I've seen it time and time again, especially with electronics, umbrellas, and of course, digital watches, which, for some reason, seem like a good idea.

  17. Re:No matter what free will always win... by MCraigW · · Score: 5, Insightful
    the cheap good will inevitably break, forcing you to buy another one

    So a 5 cent song will break before a 99 cent song?