iTunes Might Lose Labels
Dreamwalkerofyore writes "According to the New York Times, the iTunes music store might have to change its 99 cents per song policy or risk losing a huge amount of songs due to recent disputes with record companies, who demand an increase in the cost. From the article: 'If [Mr. Jobs] loses, the one-price model that iTunes has adopted 99 cents to download any song could be replaced with a more complex structure that prices songs by popularity. A hot new single, for example, could sell for $1.49, while a golden oldie could go for substantially less than 99 cents.'"
good idea!
might change that 'it's new - it must be good' thingy people have in their heads..
Then I might actually consider buying music, given that I rarely buy "new" or "popular" music.
It was working so well, it was about time they fucked it up.
Great way for the labels and Apple to discourage people from using legal methods for downloading music.
But come on record lables, get itunes popular so people are addicted then when people are hooked change the prices. dont do it yet! (even though most people are hooked)
keanmarine.com
Apple goes out of its way and makes a system so that the record industry CAN profit from online media, and then they whine their not making enough! shoulda stuck with P2P, not like they're ever happy.
I expect that if this goes through there will be few if any songs that go down in price.
Hail Eris, full of mischief...
E pluribus sanguinem
The 99 cents per song you already pay is a bit much, especially considering there is NO physical packaging, shipping costs, storefronts with employees and power bills, ad infinitum.
I really LIKE iTunes, and I *KNOW* how to steal music if I want to. I really LIKE the fact that I can buy a specific song for a pittance on a whim instead of hoping someone will upload it to the Usenet.
It's not that $1.49 is too much, but it just shows that they will try to reach a price that people will accept, however grudgingly. But the $1 mark is a psychological barrier; once they reach that, people will start to think, "Is this song worth $1.49?" and might not buy it after all.
In any case, good luck to 'em. I don't buy any new stuff anyway. Most of it is crap pushed by the payola artists.
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Like it costs so much to record a song in this day of digital recording. 99 cents is plenty.
The record labels pretty much killed CDs by charging 20 bucks each for them, now they'll kill this outlet as well.
Let them do it. Sites like AllOfMp3.com will just get more business (which appears to be totally legal). Why would anyone buy a crappy compressed song for $1.50? At that price it costs as much (or more!) as a regular CD with artwork and no compression!
I'm still waiting for the day when the general population knows about sites like AllOfMp3, where you can download an entire album in just about every popular format for around a dollar. You can even preview an entire album before purchasing, and the selection is pretty decent. Not as good as iTunes, but probably enough to satisfy a good chuck of iTMS users.
And given all this, the record companies want to make themselves look worse? Hilarious! Let them!
A variable pricing model would be fine with me. If iTunes were to include more indies and let each artist set their price, they we would end up with a dynamic model.
It seems to me that the primary problem with the music industry is the history of price fixing.
Well, then the music industry just lost another customer...
Pffft, they don't care about you. You're most likely too educated for them anyway. They want impulse buyers, not those who actually care about copyright. Their war on p2p is merely: 1. another revenue source, or
2. a publicity stunt, or
3. a lever to pressure their congressmen into creating more draconian laws, or
4. to reduce the "cool" effect (with questionable success) of p2p, or
5. an effort to shame some downloaders into buying the music they've illegally downloaded, or
6. two or more of the above.
I think the recording industry is finding that people are buying 1 or 2 songs from a given album, and paying 2 bucks for it. This contrasts with the $20 people used to pay for CDs. Instead of fixing the music so that albums are cohesive and compelling (compare Pink Floyd's Dark Side of the Moon to today's "albums"), they think that they can skirt the basic laws of supply and demand.
If you're the music industry, and you give a discount to the misses, you're going to end up making less money.
Nah... You just need to realize that the "could go for substantially less" part of the deal means maybe all the way down to $0.95. They threw that in there to make the idea more palatable, but in practice, it won't happen that way.
Also, consider that even a slight reduction could end up boosting sales of such material, in the same way that otherwise slow-selling unknowns fly out of the cutout/discount bin at any local music store... We might agonize over whether or not to buy a decent new release at $18.99, but we'll throw away a $50 without blinking on $5-$10 discs we've never heard of.
I'm not surprised that they are doing this. If you think about it, 500 million sales == $500 million (this is total sales). As far as I know, that is pretty much small potatoes in this industry. To put this in perspective, Apple had $3.5 billion in revenue for the 2nd quarter of 2005 alone. By rough estimate probably less than $100 million of that is from iTunes. They are going to find ways to bring that number higher. The smart way to do this is to fit a market pricing model, price each piece of music to maximize revenue. If you like B. Spears or whatever (I don't) you will pay more for your music.
The magic of the $0.99 is that its magnitude and uniformity places it on that mental shelf reserved for things nobody will bother to steal. But, if Apple starts making some nothings "more equal" than others, then that shelf and mindset become endangered...
Seeing bad movies only encourages them. Watch responsibly
The more I think about this, the more I think it's pure and total BS. Apple has become the WalMart of music downloads. Apple accounts for more than half of digital music downloads. The record companies can huff and puff all they want, iTunes and the iTMS have become the WalMart of digital music. If they don't carry it, it doesn't sell. The record companies would be shooting themselves in the foot.
I wouldn't call this 'capitalist' at all. This article is telling me that somehow, completely independently of one another, every major record label suddenly decided to make apple change their pricing model to the exact same thing at the exact same time? I don't think so. These labels are not in competition at all.
I don't think this has much of anything to do with actual profit by the labels. They're making plenty right now, and growing plenty simply by virtue of increased volume. This is a power play. This is the industry telling Apple, "We own you, we don't need you. You do what WE say."
Basically, since they can't compete with Apple in digital distribution individually, they are colluding to strong-arm Apple and will likely run iTMS into the ground eventually. I think laws are being broken here, but I don't expect anything to be done about it.
No sig now
MS's DRM is more open only because apple has 90%+ of the market share.
Care about electronic freedom? Consider donating to the EFF!
I think your post sums up Windows vs. Mac OS X totally. :)
Furthermore, while the "put sale stickers on old impopular stuff" works for physical media, the costs don't scale the same way with downloads. This is nothing more than a way for major labels to leverage price increases...
There's no 'on' position on the Slacker switch!
Quite honestly, maybe the time has come when people realize that while listening to a good songs is a nice thing, but doesn't deserve the insane amount of respect and money it gets today. I just don't see the significant contributions to society of a rock-star that justifies the insane rewards they get... I know that plenty of people are sheep enough to idolize people to the extreme, but maybe the golden ($$$) era for music is over (independent music anyone) and the record labels just can't deal with the fact that they wont make these insane amounts of money anymore.
Deal with it, making music has become a lot easier and created new competition in the field!
(note: price of cds - hell, most soundtracks cost more than the damn dvd of the movie)
so there have been no cost reductions in the manufacturing of these cds since their inception?
riiiiight...
especially when i can pick up a cd from an indie artist with a low production yield (therefore higher price per cd) and grab it for between $5 and $10 and they still make quite the profit on the damn thing. $7-$12 if I get it through an indie label.
Not this $18-$22 stuff that is going on through the major labels.
"Hey, man, check out this song being only 50 cents on iTunes!"
"What? It's $1.50 for me!"
Followed by a weblog post 5 minutes later. Followed by media attention and horrible PR.
allofmp3.com is much better than iTunes will ever be.
Pretty much no band is big enough to get Apple's attention by themselves. Bands on major labels have to heft of their labels to get them attention -- if not individual attention, then at least the attention that comes from being part of an established catalog.
Luckily for indie bands and labels (my shameless plug: http://www.loud-devices.com/) all the bands for which CDBaby acts as "online distibutor" together constitute quite a formidable alternative catalog.
One has to wonder: if the major labels do succeed in forcing Apple to raise prices on their releases, might Apple and the artists/label of the alternative catalog be able to keep the old, psychologically much more attractive 99-cent price point? If so, the majors might just price themselves out of the huge iTunes market, sending all kinds of new business to the indies.
Very true. Microsoft's PC platform is more open than Apple's (hardware), but the nature of DRM is that it has to be closed and proprietary. Truly interoperable DRM is no DRM at all.
Microsoft chooses to license its DRM format to mp3 player manufactirers, because it's not in the mp3 player business. Apple chooses to make its DRM work on a non-Apple OS, because non-Apple OSs dominate the market. (And both are licensing their DRM to cell phone companies, as neither is in the cell phone business.)
Why do people have to be so incredibly cheap? This is just insane.
Not only does CD Baby do the above, but they actually have a human being listen to the files to ensure that they didn't get messed up, and to set up the "sounds like" links. You are easily getting a couple hours worth of work for $35.
Okay, if you don't have a bar code yet, that is an additional $20, but try registering yourself for your own barcodes, it is a heck of a lot more than $20.
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What's funny is that the Mac got this right in 1984, and Windows still hasn't figured it out. Ask any Mac user who speaks a little French or German, and they'll tell you how to make an umlauted character: option-u followed by the character to put the umlaut over. Not hard to remember at all. (It's equally easy for all other major accent characters for European languages.)
Ask a Windows user, and either they have no idea, or they have to open Word and use the character palette, or else an international keyboard.
If they force a different pricing model with higher prices, I will pirate my music.
I have purchased 201.78 CAD (168.87 USD) since the opening of iTMS in Canada.
Before iTMS, I would buy a CD per year at the most. Most years, I would not buy any music. I'm not interested in complicated prices models, differing DRM rights per song or subscription services.
I'm a mac user and none of the other services support my platform and music player. I don't blame Apple for that at all but rather MSFT and their desire to trap everyone on windows.
Jesus was a compassionate social conservative who called individuals to sin no more.
That pricing scheme insures that we'll be mining the back catalog while the 'popular' stuff get zero play.
'Popular', meaning the latest 'artiste du jour' that they're warping into their 'sound', ripping off by making 'em pay for the studio time, the recording tame and material, the 'pressing' facilities, the 'cover art' and the promotion.
They're committing an internet suicide. You can't seriously do this without a broadcaster (and payola) structure. The buzz of an internet is completely counter to this.
When you (and I) can record, produce, publish and promote music at little or no cost, it makes no sense to go with a label.
This will mean the death of the ASCAP who will hate to start tracking playtime by song on an hourly cycle. And with an iPod shifting time, the results won't mean a thing anyway.
These **AA guys just love to shave by holding the straight edge razor against their necks and pressing down HARD.
They fuck up iTunes and I can predict their death as coming quite rapidly.
I can just see the ITMS front page:
"No non-indie songs anymore because the 'major' labels don't want to sell through us unless they can impose some nonsensical pay scales on us.
Indie music for sale at $.99 a pop."
MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
There is one thing that really pisses me off about Apple's “one size fits all” business model: it's only reasonable for certain styles of music. What about contemporary art music, progrock, or jazz (styles of music I listen to heavily) where a 15-20 minute track is not an uncommon occurence? Hell, some of my favorite CDs have something like 3 tracks ($3) and 50 minutes worth of music. Are you telling me they're worth less than a punk album with 20 tracks ($20) and the same amount of actual music? As a composer, most of my works are 8min+, how does this benefit me? Had this price model been around during the mid 70s, Pink Floyd and Led Zeppelin would have gone broke, or would have been forced to put out cookie-cutter 3 minute tracks like every other shitty pop artist. Under this price model, punk artists become millionares, and art music professionals go broke. I've devoted my entire life to learning about, and teaching myself how to write better music; spending, litterally, THOUSANDS of hours on my own or in conservatory. Why is this suddenly a bad thing, and shunned by both popular culture and the corporate model?
Apple, I love you to death, but fuck you're business model; price by the second, not by the track!
Also, don't get me started on “The Death of the Album”, I couldn't be unhappier to see artists forced to write soully on a song-to-song basis because chances are that listeners won't buy their whole albums. I was just getting really happy seeing artists coming back to writing whole albums that work together as one body of work, to see it destroyed by the new revolution.
Sure, this model puts pressure on artists to raise the level of quality from a song-to-song basis, but it also gives them an incentive to write MORE and SHORTER songs, since, “if I split the track in two, I'll make more money,” right?
—EricMultiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.