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Music Industry Threatens to Pull Plug on Apple

bacterial_pus writes "First the music industry wanted more money, by changing Apple's 99 cents per song policy. Now one exec is threatening to pull the plug on Apple if Steve Jobs doesn't change the iTunes Music Store pricing." From the article: "Nash's comments echoes those made last week by Warner CEO Edgar Bronfman, who called for Apple to adopt variable pricing and share out revenues from iPod sales. The record companies' position is based on the dubious argument that digital downloads sell iPods. In fact all the evidence points to the opposite: that iPod sales have driven demand for downloads. The vast majority of digital music sales are made by iPod owners. Cut off Apple and the labels digital sales will slump." More recently Jobs resisted their pressure, and the execs snarked back. Looks like they're getting more serious.

733 comments

  1. record industry hold back by freddej · · Score: 1, Interesting

    Couldn't they just find out a way of making their on money on digital media stores instead of trying to prosectue people who download or trying to threat iTunes store. Or is this thier new way?

    Beats me.

    1. Re:record industry hold back by macdaddy357 · · Score: 3, Interesting

      If Warner and the rest of the labels want to look a gift horse in the mouth, don't give it to them. Saying you don't want to sell downloads at iTunes would be like saying you don't want to sell CDs at Wal-Mart: marketplace suicide.

      --
      How ya like dat?
  2. Quotable quotes by M00NIE · · Score: 5, Insightful
    Quoted from the article: 'What if Jobs says 39 cents or 29 cents per download - what then?'

    *gasp* MORE people might actually BUY your music... NO the humanity, the HUGE MANATEE!

    --
    "As far as I'm concerned, I prefer silent vice to ostentatious virtue." ~A. Einstein
    1. Re:Quotable quotes by Anonymous Coward · · Score: 1, Insightful
      one exec is threatening to pull the plug on Apple

      Good. I hope he does. Perhaps the public and politicians will then wake up to the greed of the music industry.

    2. Re:Quotable quotes by zxnos · · Score: 1

      i am cheap and also picky about music. i havent bought a CD in years, nor have i downloaded anything from p2p in years due to poor quality. if i could buy cheap music and put it on any device i wanted to, i would probably pay to go to more concerts as a result and buy t-shirts, stickers, etc. i think a better system would be to view portable music as the advertising and the concerts as the real product.

      --
      always mosh clockwise
    3. Re:Quotable quotes by zoobaby · · Score: 4, Informative

      The artist get to keep the *most* money from the concerts, not the studios.

    4. Re:Quotable quotes by vought · · Score: 1
      Good. I hope he does.

      If they do, Apple will sue and make the payola scams and settlements of old look like child's play.

    5. Re:Quotable quotes by JordanL · · Score: 1

      Yeah, but they need it to pay for the studio time and production costs, which labels charge artists for, (which I would think defeats the purpose of a label anyways).

    6. Re:Quotable quotes by Anonymous Coward · · Score: 0

      Ditto the parent AND GP - I hope the music industry pulls out like the greedy control freaks they are acting like. And then I hope Apple pulls out the big lawyer guns and sues them.

      Then I hope Congress WAKES UP and realizes we need compulsory licensing again. Then Apple - and anybody and everybody else who wants to - can sell the songs for whatever they want above the compulsory fee.

      This is EXACTLY what happened between the music industry and radio in 1909, and history needs to repeat itself to prevent the oligopoly that is the music companies from maintaining this stranglehold on the industry.

    7. Re:Quotable quotes by Hugh+Manatee · · Score: 5, Funny

      NO the humanity, the HUGE MANATEE!

      The name's Hugh. Hugh Manatee

    8. Re:Quotable quotes by gregoryc · · Score: 1
      If they do, Apple will sue and make the payola scams and settlements of old look like child's play.

      How so? What would be illegal about not licensing their music to Apple? I'm not trying to be argumentative. I really don't know.

    9. Re:Quotable quotes by Pharmboy · · Score: 1

      I would guess that they can cut Apple out. Music isn't a commodity (well, it is, but it isn't...) so they can select whomever they want to distribute their products. This is one vulnerability of Apple, as they can not FORCE any labels to allow them sell music, and because it is copyrighted, they can't go get it elsewhere and resell it.

      If Apple was cut out, and there was no chance they could again sell music and had to only sell IPODs, you can bet "someone" would quickly have a hack out to make the IPOD more useful with P2P. Start looking for ipod banner ads on isohunt if that happens ;)

      It would be a stupid mistake that would cost them the majority of their online music business. This would be like the Chinese Govt. saying "We don't want any good we export to the US to be sold at Walmart". You just don't do that unless you are trying to lose sales. Then again, you normally don't sue customers in order to get them to buy more product either, but that isn't stoping the RIA*

      --
      Tequila: It's not just for breakfast anymore!
    10. Re:Quotable quotes by mmkkbb · · Score: 1

      the purpose of a label is, in this case, to front the money for the production costs, promotion costs, and tour costs. it's a loan with no interest, and if you default you get dropped from the label! yay!

      --
      -mkb
    11. Re:Quotable quotes by Scudsucker · · Score: 1

      How so? What would be illegal about not licensing their music to Apple? I'm not trying to be argumentative. I really don't know.

      Because they were just found guilty of price fixing. This is pretty risky on their part, imo. If more than one label is pressuring Apple to raise prices, and if I were Steve Jobs, my conference call would go something like this: *cough*price fixing*cough feds*cough states attorney generals*cough*

    12. Re:Quotable quotes by gregoryc · · Score: 1
      Because they were just found guilty of price fixing.

      Do you have a link for this? I guess my google skills are waning.

    13. Re:Quotable quotes by slash-tard · · Score: 1

      riaa price fixing

    14. Re:Quotable quotes by kesuki · · Score: 1

      the purpose of a label is, in this case, to front the money for the production costs, promotion costs, and tour costs. it's a loan with no interest, and if you default you get dropped from the label! yay!

      $500 worth of computer software and hardware, $50 worth of materials from the home improvement store, and that guest bedroom becomes an in-home audio recording studio studio.

      Why buy a $1,000,000 TV ad when you can buy a 1000 views on a google adwords? and instead of 'maybe' having a thousand people who saw the ad go visit the website/buy the music etc, you have 1000 go to the website to try a free 'single' torrent you have available for download, so they buy the record/see you in concert?

      I'm sorry the internet and technology has not reduced touring costs drastically, but for the vast majority of artists Touring Is the only part of the business that makes them money.

      who needs a record label anyway? oh yeah no talent lip synchers and ignorant teens who 'get to be on TV' for the latest idol show. remind me again Why does apple need the big 5 labels to find talented music to feature on the iTMS?

      oh yeah because america is a bunch of ignorant slobs who happily buy whatever the monopoly controlled, kick back accepting radio station force feeds them. Frankly man if the iTMS had no content from the big 5 i'd be saying 'hell yeah look at apple they have all the best indie music and The Artist actually make 95 cents to the dollar!' the question is does Apple need the iTMS to be a 'one stop shop' for the wares of the 'big 5' labels to sell ipods? I don't think so, and frankly I hope steve Jobs doesn't think so either.

      the big 5 will LOOSE money if they force iTMS to stop selling big 5 music, and apple won't loose hardly any money (since they run the download buisness so near cost) and since people buy the ipod because it's such an awesome music player. if they can't buy music from iTMS and 'napster' downloads don't work with ipods, people will just 'pirate' the music, or make due with the music they already have. or gasp, go out and learn who's actually making new and innovative music, and where the real talent is going, and there money will be spent not making the big 5 billions of dollars a year, but rather into making performing artists and songwriters have better lives with more disposable income to buy on houses and cars and families etc.

      frankly i don't see how apple can loose on this one, the music dinosaurs are having a hissy fit, and it's not over the pricing (that's just the face of it) they want control they want shoulder out the 'indie' music from iTMS and have just big 5 hits for sale. if they can 'force' apple to charge $1.49 a song, then they can 'force' them to 'not display indie music until after all big 5 songs' in listing relevancy...

      I'm glad jobs is at the helm on this one, I'm sure he'd rather see the iTMS go away (or fade to obsurity) than become the pathetic lapdog for the big 5 labels so they can crush small independant artists who are threatening to topple the 'dinosaur' labels with the low cost, 'give the people what they want' 'wal-mart' model instead of the 'tell people what they want and how much they'll have to pay for it' department store model. After all independant artists need solid computers to do all the mixing and tracking on and what better computer than an Apple to use for that? especially if you're making tons of money selling via the iTMS?

    15. Re:Quotable quotes by tricorn · · Score: 1

      One label can cut Apple out (and that one label would probably lose a lot of money and market share because of it - not just because they wouldn't sell music through iTMS, but because they'd get bad publicity over the whole thing). However, if some (much less ALL) of the labels agreed to cut Apple out, in order to force Apple to agree to a higher price, the price-fixing lawsuit would happen so fast, you'd be reading about it in Groklaw the next day.

    16. Re:Quotable quotes by jabuzz · · Score: 1

      At a guess the companies have signed legally binding contracts with Apple agreeing all the terms by which Apple can sell music through iTMS. I somehow doubt Apple would sell songs without such a contract in place. Thing is now iTMS is a sucess the music companies would appear to be trying to renegociate these contracts to take a bigger slice of the cake. Problem is you cannot just demand the otherside renegociate an existing contract.

    17. Re:Quotable quotes by mmkkbb · · Score: 1

      who needs a record label anyway? oh yeah no talent lip synchers and ignorant teens who 'get to be on TV' for the latest idol show.

      that's a crock of shit. a label, even a small one, will have people dedicated to getting records reviewed, advertised, manufactured, and sold to distributors. it doesn't happen by magic. it's hard enough for a team of experienced and dedicated people to do it, never mind doing all of these tasks while also working enough to feed yourself and lining up gigs and playing them. sure, it's possible to do this all yourself, but more likely than not, you'll end up with a bunch of unsold records sitting in your living room while you try to make ends meet.

      --
      -mkb
    18. Re:Quotable quotes by shmlco · · Score: 1
      "$500 worth of computer software and hardware, $50 worth of materials from the home improvement store, and that guest bedroom becomes an in-home audio recording studio studio."

      That and five-to-ten years of practice will make you a halfway decent recording engineer...

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    19. Re:Quotable quotes by kesuki · · Score: 1

      the key word in my sentances was who _needs_ a label. The points you bring up are why someone would _want_ a label. Artists don't need labels to survive, it's the job of the labels to convince the artists that they can in fact do something worth a cut of the profits etc to be worth using them. labels on the other hand Need artists, since without the artists they have nothing to sell and market. The problem is that the major labels are run by people who they they're Entitled to having musicians slave away for there own profits etc. it's simply not the case, the relationships is supposed to be symbiotic, provide real value to the artists so that everyone makes more money/is happy etc..

    20. Re:Quotable quotes by Pharmboy · · Score: 1

      However, if some (much less ALL) of the labels agreed to cut Apple out, in order to force Apple to agree to a higher price, the price-fixing lawsuit would happen so fast, you'd be reading about it in Groklaw the next day.

      IANAL, but no, I'm pretty sure they would not, not unless they actually conspired to do so, which they do not have to in order to get the action done. If they all just quit licensing Apple to sell its product without "conspiracy" proven, then there is nothing to sue about.

      A manufacturer HAS THE RIGHT to put limits on what a distributor can charge or advertise, price wise, on the web. (local newspaper ads are ok) This is perfecly legal and legit. My company does it, not allowing distributors to advertise ANY price on the web, although we SELL on the web ourselves. Because we are the only one showing a price on the web, we can maintain the integrity of that price, and guarantee the dealer a profit.

      If the individual record companies independently decide they don't want their music sold for 99 cents (one says 1.25 is lowest, the other, 1.45, another, 1.32, etc) and they are not working TOGETHER, then they have acted 100% legal, and they are within their rights as a manufacturer of a product.

      It would still be DUMB, but perfectly legal. It's really easy to accuse someone of "price fixing", but proving it in a court of law is a lot harder. You have to have real evidence, not conjecture.

      --
      Tequila: It's not just for breakfast anymore!
    21. Re:Quotable quotes by tricorn · · Score: 1

      No, you don't have the right to limit what they can charge. Not allowing them to display a price in advertising is right on the edge of price fixing, but specifying a minimum advertised price or minimum price to sell something at is the very essence of price fixing.

      You're right that if they all independently decide to raise their price point (and what they're really raising is the price that Apple pays them - not what Apple sells it for), that would be legal. However, it just isn't going to happen. If ALL of the labels all of a sudden turn around at the same time and demand a higher price, it WILL be because it was collusion, and it WILL be possible to prove it. Phone records, e-mail records, people who saw X and Y and Z all in a meeting together the day before, etc. SOMEone will talk.

    22. Re:Quotable quotes by Pharmboy · · Score: 1

      Not allowing them to display a price in advertising is right on the edge of price fixing, but specifying a minimum advertised price or minimum price to sell something at is the very essence of price fixing.

      This is done every day, in many industries, and it is perfectly legal. If I manufacture a product, you do not have a god given right to sell it. _I_ get to decide who sells it, and how it is displayed and sold. The only time a manufacture or product provider has to give up some rights of control is when they have a legal monopoly. There are dozens of court decisions upholding this right, and dozens of reasons why placing these limits is a GOOD idea.

      Hot tubs are a good example (I dont sell/make them, but they are a good analogy). Most hot tub manufacturers are going to have clauses that limit what a dealer can advertise the hot tub for on the internet. If you don't like the clause, don't sell the product. If you violate the clause, you lose your right to sell my product. It is a contract, and it has other restrictions as well, for the purpose of pretecting the image, profitability and stability of the manufacturer.

      If you DON'T have limits, I can tell you from experience what EXACTLY will happen:

      ABC company sells pool tables, outdoor equipment and hot tubs. He makes a living on the other stuff, so he doesn't need a huge margin on the hot tubs. He is in a cheap metro area, so labor and rent is cheap. His cost is $2000 for a unit, and his other overhead is only $400 average. He put them on the web for $2800. On the other hand, 123, Inc. is in New York, and his cost is $2000, but his overhead is $1200, so he can't sell them for $2800. He complains to the manufacturer, who does nothing, so 123, Inc. switches to another brand. Pretty soon, ABC is the only company selling your product because he has run off all the other dealers. Now he raises the price way high, or goes out of business for some reason (old, death, etc). Either way, as a manufacturer, you are fucked. As a consumer, you have to pay more for the same product.

      So you put limits on what they can advertise to MAKE THE PLAYING FIELD LEVEL. They can sell in their store for whatever they want, they just can't cut fellow dealer's throats on the internet (out of their territory).

      If I am the manufacturer, I have every right to set limits on what my dealers can and can't do with respect to advertising (or they can buy another brand..I don't have a monopoly). The purpose is to give every dealer a chance to make a living, and the customer can pick from any dealer, any brand (not just mine) and find the best deal. My dealer's will be able to be profitable, and will be there for years to come with service, and thus, provide a good value.

      This is the whole concept behind distributor networks, from car dealers to pool tables. The manufacturer sets the rules so all the distributors have a fair chance to make a living. You might not like this, and think that you would get a better deal if they could cut each other's throats (and you would, for the first few weeks...), but most would end up out of business, and you will end up with LESS choice and higher prices.

      --
      Tequila: It's not just for breakfast anymore!
    23. Re:Quotable quotes by tricorn · · Score: 1

      Can you explain how what you're describing doesn't fit the DOJ definition of price fixing?

      Forms of Collusion

      Most criminal antitrust prosecutions involve price fixing, bid rigging, or market division or allocation schemes. Each of these forms of collusion may be prosecuted criminally if they occurred, at least in part, within the past five years. Proving such a crime does not require us to show that the conspirators entered into a formal written or express agreement. Price fixing, bid rigging, and other collusive agreements can be established either by direct evidence, such as the testimony of a participant, or by circumstantial evidence, such as suspicious bid patterns, travel and expense reports, telephone records, and business diary entries.

      Under the law, price-fixing and bid-rigging schemes are per se violations of the Sherman Act. This means that where such a collusive scheme has been established, it cannot be justified under the law by arguments or evidence that, for example, the agreed-upon prices were reasonable, the agreement was necessary to prevent or eliminate price cutting or ruinous competition, or the conspirators were merely trying to make sure that each got a fair share of the market.

      Price Fixing

      Price fixing is an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold. It is not necessary that the competitors agree to charge exactly the same price, or that every competitor in a given industry join the conspiracy. Price fixing can take many forms, and any agreement that restricts price competition violates the law. Other examples of price-fixing agreements include those to:

      Establish or adhere to price discounts.

      Hold prices firm.

      Eliminate or reduce discounts.

      Adopt a standard formula for computing prices.

      Maintain certain price differentials between different types, sizes, or quantities of products.

      Adhere to a minimum fee or price schedule.

      Fix credit terms.

      Not advertise prices.

      In many cases, participants in a price-fixing conspiracy also establish some type of policing mechanism to make sure that everyone adheres to the agreement.

      [ . . . ]

      Market Division

      Market division or allocation schemes are agreements in which competitors divide markets among themselves. In such schemes, competing firms allocate specific customers or types of customers, products, or territories among themselves. For example, one competitor will be allowed to sell to, or bid on contracts let by, certain customers or types of customers. In return, he or she will not sell to, or bid on contracts let by, customers allocated to the other competitors. In other schemes, competitors agree to sell only to customers in certain geographic areas and refuse to sell to, or quote intentionally high prices to, customers in geographic areas allocated to conspirator companies.

      Detecting Bid Rigging, Price Fixing, And Other Types Of Collusion

      Bid rigging, price fixing, and other collusion can be very difficult to detect. Collusive agreements are usually reached in secret, with only the participants having knowledge of the scheme. However, suspicions may be aroused by unusual bidding or pricing patterns or something a vendor says or does.

      [ . . . ]

      Prices

      Identical prices may indicate a price-fixing conspiracy, especially when:

      Prices stay identical for long periods of time.

      Prices previously were different.

      Price increases do not appear to be supported by increased costs.

      Discounts are eliminated, especially in a market where discounts historically were given.

      Vendors are charging higher prices to local customers than to distant customers. This may indicate local prices are fixed.

      Sounds like what you're doing, and sounds like what the music labels would be doing if they all of a sudden "just decided" to cut Apple out of the loop if Apple doesn't agree to raise prices.

    24. Re:Quotable quotes by Pharmboy · · Score: 1

      Try reading your own post, particularly: "Price fixing is an agreement among competitors" It goes about "conspiracy", which requires two or more parties. A manufacturer making the rules for all dealers can not be a conspiracy because it is a single entity, under any interpretation of the law.

      Manufacturers allow a limited number of distributors in a given area, for the sole purpose that they do not compete against each other. This is why they fix territories. One dealer may have south Texas, another Louisiana. They are not competitors in any legal sense because they are restricted by contract to NOT compete. In a distributorship arrangement, a competitor would be defined as someone who is not part of the network and sells a DIFFEENT brand.

      The dealers within the network are associates, NOT competitors. Often, one will call another if he is out of "model 123", and the second will ship a spare "model 123" at cost, with the understanding that the other dealer would do the same for him. It is cooperative, not competitive. That is the goal of any manufacturer, and the reason for the restrictions. They both benefit from "BRAND A" having good dealers across the US, and from national advertising that the manufacturer is able to do because of the profits and cooperation of the distributors. Yes, they might like to sell equipment outside their area, at any price, but this would hurt the network, thus the manufacturer, and in time, themselves. This is why they agree, by contract, to not do this. In the end, the customer can choose from Brand A, B or C because all 3 manufacturers have good dealer networks. The customer has MORE choice.

      Price fixing in my example would be where TWO OR MORE HOT TUB MANUFACTURERS agreed to a fixed price for their products. An individual manufacturer can set any limits they see fit for the privilege of distributing their products.

      A real world example: All bread makers in a city decide that $1 is too cheap for a loaf of bread, so they get together and conspire that none will charge less than $5. THIS is exactly what your quote refers to. If the "Bob's Bread" company independently wants to charge $5, or limit his bread to only Walmart stores and require that they do not advertise their price lower than $5 (or advertise at all), then this is legal. They do not have a monopoly and have not conspired to do anything. Walmart can agree, or say "screw you" because they can get bread from other bakers.

      The market division clause is where "Bob's Bread" takes the east side of town and "Fred's Bread" takes the west side by agreement, so they can keep prices up. They are different companies, thus conspired to keep prices high by limiting competition BETWEEN DIFFERENT BRANDS.

      Distributorships are complex, but you have to remember, the whole idea behind dealers is so they DONT compete with each other, and instead compete with other BRANDS (where this law WOULD take effect.)

      The entire structure of American Capitalism is based on distributorship principals (although less so now than 60 years ago). It allows for manufacturers to get their products to the people throught a reliable, sustainable chain of distribution that is protected from itself via the restrictions the manufacturer puts in place, but must compete against other companies according to your post.

      McDonalds franchises (and others) are on the same principal. They compete with Burger King and Wendies, not each other. The corporate restrictions on advertising and methods insure the customer gets the same experience each time. It is a form of control of dealers/francisees, yes, for the benefit of the consumer.

      --
      Tequila: It's not just for breakfast anymore!
    25. Re:Quotable quotes by tricorn · · Score: 1

      Of course they're competitors, you said that if one were to sell at a lower price, the others would go out of business because all of their customers would go to the one who lowered the prices. Just because YOU are the one setting the prices, they're still all agreeing to abide by that. That just makes you a co-conspirator.

      Now, if all of the dealers you're talking about are "Pharmboy's Hot Tub Dealer" stores, then they're actually a PART of your business - same with franchises like McDonald's, the whole store is the brand. However, if McDonald's were to sell frozen hamburgers to the grocery store (as White Castle does), McDonald's couldn't dictate to that store how much they could charge. McDonald's could charge whatever they want, of course, and that will have an effect on the price, but they can't dictate it directly, just as if you were to sell your hot tubs through Farm & Fleet, you couldn't dictate prices to them, all you can do is set your wholesale price.

      If you want to limit yourself to closely affiliated dealerships, then yes you can exert a lot of control. If you want to take advantage of a wider network of outlets, you have much less control.

      From Dealer and Distributor Terminations in Ohio, although it is mostly analyzing Ohio law (and makes reference to some other states), it has this to say about the Sherman Act:

      Section 1 of the Sherman Act prohibits a manufacturer from reaching an agreement with a dealer or distributor on the minimum price at which goods may be resold. Such an agreement is deemed per se unlawful. The United States Supreme Court held in 1997 in State Oil Co. v. Khan that a maximum resale price agreement, in contrast, may be permissible under a "rule of reason" analysis. Under this analysis, a restraint is evaluated to determine whether its pro-competitive effects outweigh any anti-competitive effects. Other business practices that have indirect effects on pricing may also fall under antitrust scrutiny, including suggested retail prices, cooperative advertising and dealer assistance programs, but these practices will not expose a supplier to antitrust liability in the usual case, and they are not per se illegal.

      A vertical restraint in connection with termination of a supply relationship may be a per se violation of Section 1 if the restraint includes some agreement on minimum resale price levels. The Supreme Court has held that Section 1 may be violated if a manufacturer terminates a discounting dealer pursuant to agreement with a competing dealer that the competing dealer will not sell the manufacturer's products below a certain price. The successful plaintiff in a federal antitrust case can recover treble damages and its attorney fees.

      An agreement between a manufacturer and its dealer or distributor limiting the territory in which the dealer ordistributor can sell the manufacturer's products, the location from which it can sell or the customers to which it can sell is subject to rule of reason analysis. Courts recognize the pro-competitive benefits of such an agreement and rarely disturb it unless it has a significant net adverse effect on interbrand competition.

      As pointed out in this article, which references the State Oil v. Khan Supreme Court decision, there's a lot of unclarity to the whole thing. However, at least from what I understand of those, while maximum price fixing may be generally ok, minimum price fixing is still a per se violation, even with a dealership.

    26. Re:Quotable quotes by Pharmboy · · Score: 1

      Again, in the examples I gave, the manufacturer doesn't dictate the selling price, only the advertising price, forcing other dealers to sell below cost. I made this clear. If you want the best deal, you have to show up at the store.

      I see your point how a manufacturer can't dictate the actually minimum selling price, which isn't something I would do anyway, and isn't what I advocated.

      Recording companies can, however, dictate how their products are advertised. Technically, even with all this discussion, they CAN require that ALL online music stores do not advertise their products for less than $2 each, to protect the "integrity of the pricing model". They can NOT single out Apple, they can't get together with other record companies to agree on the price.

      I am not a paralegal (although I was in that line of work many years ago) but this is the problem with the internet, as the laws are fuzzy as applied to this unique medium, and precident is lacking. The same place you would advertise, you would sell at, ie: the website. Newspapers and TV aren't that way. (phone, perhaps, but that is still different). This, to me, is what makes it a bit fuzzy. The closest medium I can think of that would parallel is telemarketing, whereas both advertising and sales happen within the same medium. I don't, however, think it is a very good comparison.

      I would contend that a court would see the primary purpose of the site as advertising, thus the record companies would be able to say "you can't advertise the price as 99 cents", even if they can sell it for 99 cents at that page. (ie: no 99c on the front page, only the product page.) Yes, we have reduced this to what may seem as acedemic to everyone except us, but THIS is what would be argued in a court of law.

      I didn't say I would LIKE this finding, but this is what I think would happen. As long as people have a choice of where to buy their music, and they can buy it from many different places, and many different record companies, I think a judge would be hard pressed to interfere, as the "harm" to the consumer isn't as great as the manufacturers rights, in this particular case. Or at least, it could very easily be argued. We obviously disagree on what the outcome would be (but not should be), so we will have to let a judge decide ;)

      As to the manufacturer's right to limit advertised price (but not sale price), I still stand by my previous statements, as they do not apply to the above in the examples I gave.

      --
      Tequila: It's not just for breakfast anymore!
    27. Re:Quotable quotes by tricorn · · Score: 1

      Fine, here's some commentary on MAP (which, in some cases is allowable, in others is not), from Product Distribution and the Internet: The Antitrust Issues:

      Price-restrictive advertising that is not coop-supported, however, may remain per se unlawful. In the context of traditional brick-and-mortar dealers or distributors, this means that a manufacturer may run afoul of the antitrust laws by requiring adherence to MAP with respect to in-store promotions or other advertisements that are not coop-supported. In the context of the Internet, MAP restrictions binding an entire web site may constitute a violation if the manufacturer paid for only part of the site. Even if the manufacturer paid for the entire site, it may not restrict the prices advertised on other web sites linked to the original site. Complications may also arise if the dealer's or distributor's web site serves not only to advertise a product but also to take purchase orders. Under these circumstances, the manufacturer's advertising restriction may well be deemed the functional equivalent of resale price maintenance, and it would be unlawful per se.
      and see Cooperative Advertising Programs and Minimum Advertised Price (PDF) which says in part:
      Limitations on dealers' advertising of discounts on the Internet may also be problematic, at least where websites take purchase orders and posted prices might be considered the equivalent of instore price stickers.
      and also has this to say about being careful how you control your dealer's behavior:
      Since the Sherman Act prohibits only "agreements in restraint of trade," manufacturers can unilaterally announce in advance that they will deal only with distributors who adhere to their pricing policies and can terminate those who depart from such a policy. On the other hand, a manufacturer that goes further and, confronted with a distributor that is not complying with its pricing policy, rather than terminate the distributor, coerces or induces the distributor into changing its prices, may violate the law. The problem is that subsequent compliance in response to pressure may be considered to form an "agreement" on prices. Thus, while "exposition, persuasion or argument" to influence dealers is generally allowed, threats of sanctions, policing, requiring approval of deviations, retaliatory price increases, and the like may support a finding of an illegal agreement, when they succeed in securing some indication of a dealer's assent.
      In other words, while that partially supports your contention that you can require dealers to adhere to a pricing policy, you have to be VERY careful about how you enforce that. And, Apple is not a dealership, and I doubt they take any co-op advertising money from any labels. Any indication of collusion by the labels would also be a big problem for them - see my earlier reference to DOJ document regarding what kind of evidence they'd be looking for.
    28. Re:Quotable quotes by Pharmboy · · Score: 1

      Very interesting indeed. Cases I had read about in the industry over the last few years were not as specific as this. They had addressed manufacturer's rights, but didn't touch on the concept of making rules prior to accepting dealers vs. coercing them afterward.

      I am not sure how this applies to Apple since I do not know their exact legal position or if they are accepting coop money (like you, I doubt it), thus, would have to concede the point. It does, however, raise some other interesting but unrelated issues for me personally. Thanks.

      --
      Tequila: It's not just for breakfast anymore!
    29. Re:Quotable quotes by Anonymous Coward · · Score: 0

      > $500 worth of computer software and hardware, $50 worth of materials from the home improvement store, and that guest bedroom becomes an in-home audio recording studio studio.

      Just like a $50 "Learn C in 21 days" book will make you a programmer.

      And if you think you can spend $500 (in any currency) and get a decent home recording setup then you're sadly mistaken. It takes way more than a budget PC and a Soundblaster before you're on the same continent, let alone in the ballpark. I know, because I've recorded in a real studio, and I've been using a budget PC and an SB Live for a few years now - which, incidentally cost me around AU$1500 for the PC and Soundcard alone (white box PC bought myself using parts selected for stability and price over performance), and I haven't payed for any of my software, and nor does that include the cost of the non PC audio gear - mixers, microphones, cables, amps, speakers, out board effects, etc.

      I'm now at the point where I want to take things to the next level, and at the same time start using legitimate copies of software. As a result, I'm looking at spending at least AU$2500 on a new PC (workstation class this time instead of budget, but also with components selected for silence which really bumps up the cost), $AU250 for Windows (XP Pro, OEM), $1300 for the sequencing software (Cakewalk Sonar), $1000 for a digital audio card, I also need a new microphone (A decent dynamic - I currently only have a large diaphram condenser), which is at least another $350 (more like $500), and I could do with an out board analogue compressor, which is another couple of hundred.
      Then I have the softsynths - I'm currently using Roland's Edirol Orchestral softsynth, that's US$299 - so $AU500, and I _want_ to use fxpansion's BFD (current setup not powerful enough), which is another $US550 for the BFD / BFD XL bundle - so that's $AU700.
      I also probably want a decent piano sound (though I'm currently using a $25 soundfont that is really surprisingly good, and has so far defied replacement), but rather than go the softsynth route for that, I might spend another $AU3500 on a decent Yamaha clavinova.
      I also need to replace the 30 year old hi-fi speakers I'm using in my "studio" with some decent near field monitors, which is another $800. I'd also like some big PA speakers too (since I'm doing hard rock / metal, and want to be able to rattle the windows every now and then), which along with a decent amp is at least another $1000.

      So all up I'm looking at well over $10,000 - and I know damned well that I'm never going to make a cent of it back, because I have a real job that well and truly ensures that music will never be anything more than a hoby for me by sucking up my time and motivation.

      Music production _is_ an expensive, time consuming process whether you do it at home, or in a studio.
      A $500 setup will only get you far enough to realise that you need more than a $500 setup.

      By the way, It's LOSE not LOOSE.

  3. Ridiculous by pen · · Score: 4, Insightful

    To echo comments in the previous article, asking Apple to share iPod profit is like an electric company asking Maytag to share their profits from selling washing machines. (Or like oil companies asking automobile manufacturers to share their profits.) And so on...

    1. Re:Ridiculous by DaveFromChicago · · Score: 5, Funny

      What? You mean the recording industry doesn't get a cut whenever a CD player or a set of speakers is sold? Clearly the music industry is floundering.

    2. Re:Ridiculous by soft_guy · · Score: 2, Insightful

      Or perhaps Maytag will give some of their profits to Tide.

      --
      Avoid Missing Ball for High Score
    3. Re:Ridiculous by Anonymous Coward · · Score: 0

      Or like oil companies asking automobile manufacturers to share their profits.

      Except the automobile manufacturers aren't selling oil.

    4. Re:Ridiculous by LeonGeeste · · Score: 1

      You know, if you really believe your product is going to increase another company's sales, and they're not going to give you a cut, here's a crazy way to get that cut anyway: it's called "buying their stock". New concept, they should look into it.

      --
      Rank my idea: http://www.sinceslicedbread.com/node/531
    5. Re:Ridiculous by TCQuad · · Score: 4, Funny

      I think you're being a little harsh. Let's allow the market decide if the RIAA deserves some of the proceeds from iPod sales.

      At the sale of each iPod in the Apple store, ask the customer to donate $1, $10 or $25 directly to the RIAA. Apple will collect the money and (after assessing appropriate handling charges) send them a check.

    6. Re:Ridiculous by mr+i+want+to+go+home · · Score: 2, Interesting
      Except the automobile manufacturers aren't selling oil.

      Does it really matter? The way you put that makes it seem like you think it does, but I can't for the life of me think what the issue is. Sure, Apple will want to keep song prices low to make iTunes more attractive/competitive....but so would any other music store.

      The fact they also sell the music player as well....well, so what?

    7. Re:Ridiculous by Anonymous Coward · · Score: 2, Informative

      Maybe I'm missing something, because I'm not into this whole scene, but why doesn't the RIAA just raise their own prices? I assume they have some sort of contract with Apple, because otherwise they would be (rightfully) sueing the shit out of them for mass distribution of copyrighted works. So that contract must have some sort of pricing deal included. The very simple, honest, market-proven technique to get what you think is you fair share is that when the time comes to renew the contract, you demand a higher price. It doesn't matter what iTunes charges, as long as the RIAA gets what they were promised.

      Now, I would assume that this is what is already happening. I would guess that by "cutting them off", the RIAA means that Apple is demanding prices which allow them to distribute for $.99, but the RIAA isn't going to agree to that anymore, such that they may reach an impasse where the contract won't get signed. That's not really news, though, because that's everyday business. You play the game to try to get as much as you can. It's only interesting because, as somebody said, they basically each have related monopolies, so it's an irresistable force against an immovable object (and in an area that consumers care about).

      Sadly for the RIAA, everybody hates them and has no qualms about taking their products without paying for them. Everybody loves Apple and even around here people are willing to pay for physical things. So while the RIAA in this case is on just as firm ground as Apple, they are going to lose the public opinion polls and they are on poor footing because of rampant copyright infringement. So I think Apple will win, whether they deserve it or not.

    8. Re:Ridiculous by Overly+Critical+Guy · · Score: 2, Informative

      The RIAA is a lobby group, not a company. It's the labels that the RIAA merely represents who want to drive up proceeds.

      Just pointing out that a lot of people are acting like the RIAA is its own entity. It's record labels, people.

      --
      "Sufferin' succotash."
    9. Re:Ridiculous by jcr · · Score: 1

      If the record companies want to make money on the iPod, they should do what I do: buy AAPL shares. They're up over 400% from when the iTMS launched.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    10. Re:Ridiculous by Steve+Cowan · · Score: 1

      A Canadian lobby group similar to the RIAA unsuccessfully tried to impose a levy on iPod sales. This is clearly the wrong approach, because people who use them legally and fairly still get penalized.

      Paying extra money to RIAA / artists / whatever when you buy your MP3 player is like having to buy your music twice.

    11. Re:Ridiculous by Anonymous Coward · · Score: 0

      this should have been modded Hilarious, wonderfully sarcastic, brilliant bit of satire that!.... oh never mind

    12. Re:Ridiculous by Dachannien · · Score: 1

      Bad example, as Maytag wants to share their profits - all their profits - with Whirlpool.

      (Your point still stands, of course, unless Apple accepts a buyout offer from one of the big media corporations.)

    13. Re:Ridiculous by poopdeville · · Score: 1

      Thank you for summarizing the blurb and what everyone already knew about the case. We appreciate it, since the blurb only included new information from which the rest could be inferred.

      --
      After all, I am strangely colored.
    14. Re:Ridiculous by Anonymous Coward · · Score: 0

      For the record, I agree with you... just playing devil's advocate, and pointing out a bad analogy.

      (Yes this is the same AC. No I can't prove it. Yes, I should have posted logged in :P)

    15. Re:Ridiculous by Halfbaked+Plan · · Score: 1

      Maytag is about to give all of their profits (well, their losses, actually) to Whirlpool.

      --
      resigned
    16. Re:Ridiculous by Halfbaked+Plan · · Score: 1

      That's just because Apple was about to tank so badly that a firm like Sun Microsystems would buy them, before Steve Jobs decided to 'save the company' by spending the rest of his life selling sugar water to children. (an actual iTunes promotion did just this in partnership with Pepsi). Scully wins in the end.

      --
      resigned
    17. Re:Ridiculous by Anonymous Coward · · Score: 0

      Agreed. My iPod primarily contains all the CD's I accumulated over many, many years.

      The music industry has already gotten rich off of these purchases. What makes them think they deserve even more of my money for the CD's I already paid far too much for???

    18. Re:Ridiculous by way2trivial · · Score: 1

      but under canadian law, kinda understandable to try for.

      canadians pay a levy on cdr's for music-- it's paid to their artists fund, and that gets money distributed to all musicians.. after office expenses of course..

      --
      every day http://en.wikipedia.org/wiki/Special:Random
    19. Re:Ridiculous by jcr · · Score: 1

      That's just because Apple was about to tank

      Guess again. Apple was already back to about $10 billion in market capitalization by the time the music store was launched.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    20. Re:Ridiculous by Deadguy2322 · · Score: 0

      The levy did apply to hard drive based and flash based MP3 players for a brief time, but Apple lobbied to have it dropped, as they then had no legitimate reason to charge this for some storage devices, and not memory cards and hard drives for pcs. The only sensible legal decision in Canada in years.

      --
      Check out my foes list to see who is so retarded that they can't use the signature line!!!
    21. Re:Ridiculous by 91degrees · · Score: 1

      As far as I understand it (I may be wrong), Apple is offering 95c per copy of a song.

      Each record company is free to accept or reject this price. However, if the whole RIAA decided to reject it en masse, then this would be considered price fixing i.e. anti-competitive behaviour by a cartel. The record industry has been burnt by this before for overpricing CDs. The same could apply to Apple, but it's less of a clear case since there isn't really any barrier preventing them from opening their own music store, and competing directly with iTunes.

      Interestingly, Apple is now using the record industry's tactics against them. For years, the record industry's position has been that people aren't obliged to buy a CD. they have a choice of paying the money or going without. Now Apple is offering exactly the same deal.

  4. How about a share of iTunes instead? by losman · · Score: 2, Funny

    If the execs really want to see what drives people toward digital downloads then they should look at iTunes. iTunes is what makes this all so easy so let's give the execs %100 of the profit from iTunes.

    Oh! That's right... iTunes is FREE!

    --
    Q: I am short, useless and provide no value. What am I? A: a sig
    1. Re:How about a share of iTunes instead? by pete6677 · · Score: 5, Insightful

      They don't want it to succeed. The recording industry actions over the last few years have pointed to a common goal: stop online music distribution. It could never be as profitable for the music cartel as physical distribution. I think they allowed iTunes to temporarily succeed with this plan in mind all along so they can later kill it, to establish that there is no market for online music distribution and people can now go back to paying $20 for a CD with 2 good songs on it. But it's too late for that to happen now. The only thing that will ultimately pull the music industry's collective head out of it's collective ass is when well-known artists bypass them altogether. When things like this happen, that day will come sooner rather than later.

    2. Re:How about a share of iTunes instead? by jdog1016 · · Score: 3, Interesting

      Correct me if I'm wrong, but I seem to remember reading that the music industry actually makes more money on each 99 cent download than it does through physical cd sales, simply because there is virtually no overhead involved (for record companies) in online music distribution.

    3. Re:How about a share of iTunes instead? by necro81 · · Score: 1

      As I pointed out when the last article about this was posted, the current consensus is that the music industry is paid something like 65 cents for each 99 cent download. So, I'd say they are already getting quite a cut from iTunes (Music Store).

      I agree with just about every poster that points out the counter argument to the music execs: they haven't ever received money from CD-player manufacturers. As for forcing apple to increase its prices on popular songs, that's just plain greed on the music industry's part. They seemed fit to grant Jobs the terms when iTMS was just a pipe dream in an empty field. Now that it is drawing in huge revenues, though...

    4. Re:How about a share of iTunes instead? by catwh0re · · Score: 2, Insightful
      The music execs actions definitiely point at one common behaviour, one of continual rising greed. Where their various approaches to making more money each quarter are based entirely on attaching their goals to dubious means.

      * Haul users into court and get settlements to hope a 'problem' in piracy results in more physical sales.

      * Try to get extra revenue (because 80% isn't enough) from individual iTMS music sales, it's not like they actually pass on the 80% to the artist.

      * Put up the individual cost of music where ever possible.

      Never do they actually bother try to increase the quality of music available to the public or actually give them more of it. They have a culture of pushing celebrity status apon a few single artists and micromanaging their actions into the press hoping for follow on success.(britney/etc) When they know perfectly well that they can make a lot of money out of promoting (but not to gigantic international celebrity level.) smaller local artists who sell in smaller volumes. But this effort requires a lot of work that they aren't interested in, so they think suing you instead will help britney's sales.

    5. Re:How about a share of iTunes instead? by ScrewMaster · · Score: 3, Insightful

      Right or wrong, it's not about the money, per se. It's about control of distribution, which they do not have with Steve Jobs and Apple. And that's just torquing them into pretzels.

      --
      The higher the technology, the sharper that two-edged sword.
    6. Re:How about a share of iTunes instead? by Synn · · Score: 1

      Yeah, but what happens in 10 years when the artist can cut a track in the studio, upload it directly to iTunes, iWhatever and pull in profits without a label ever seeing a dime?

      That's what the labels are really afraid of and why they need music to stay on a physical medium that they can control. Indies can press their own CDs, but try getting Walmart to sell them without the backing of a label.

    7. Re:How about a share of iTunes instead? by Anonymous Coward · · Score: 0

      Apple should immediately start a media division to compete with the RIAA companies. Maybe such a move would encourage the greedy shits to play nice.

    8. Re:How about a share of iTunes instead? by Anonymous Coward · · Score: 3, Funny
      the music industry actually makes more money on each 99 cent download than it does through physical cd sales
      Ah, but that's the beauty of their nefarious plans. First, they, uh... Well, then they, um... Lemme see... OK, so they're a bunch of overpaid fucking idiots.
    9. Re:How about a share of iTunes instead? by TeraBill · · Score: 1

      I believe that both John Dvorak and I agree with you on this. There are probably a lot of reasons, control at or near the top of the list, why the record companies don't like the success of the iTunes Music Store. They are just trying to find a reason to pull the plug and be able (with a semi-straight face) say that it was Apple's fault. They will say, we wanted to let you have some songs for less money, but Apple kept that from you. Sure, give us $0.29 songs for the ones that nobody really downloads anyhow to justify charging us $1.79 or $1.99 or more for the 'popular' songs. In the end, it gets them more money and returns more control to the record companies.

      For Dvoraks comments: http://www.pcmag.com/article2/0,1895,1862166,00.as p

    10. Re:How about a share of iTunes instead? by courtarro · · Score: 1

      They may make more money per track, but remember that you're only buying the good tracks on a CD. The record industry doesn't like the per-track model of online downloading because it doesn't force you to purchase the less desirable tracks on each album.

    11. Re:How about a share of iTunes instead? by jocknerd · · Score: 2, Insightful

      Exactly. And this is where the record labels screwed up big time. How many years did they fight Napster when they should have been setting up their own legal download shop? Instead, Apple took the initiative and presented it to the labels when they were desperate. Now Aple has the control and the labels are realizing that iTMS doesn't need them in the future. They SHOULD be very scared. If I have a band, and my contract is up with a label, I'd be crazy to re-sign. I could easily go straight through iTMS and get a much larger percentage of the profits.

      Rest in Peace, RIAA.

    12. Re:How about a share of iTunes instead? by ShinmaWa · · Score: 1

      They do make more money per song, but not per sale.

      Take your typical album of 12 songs with 2 ones you like on them and 10 others you couldn't care less about.

      If you are buying from iTMS, you would buy those two songs and the label would get about $1.20 from the sale. If you buy from the store, you have to pay $20 for the whole album, of which about $5-6 goes to the label. So, over the long haul, the labels are making less money because they no longer are able to force you to buy the bad with the good.

      --
      The /. Effect: Thousands of users simultaneously accessing a site to not read its content.
    13. Re:How about a share of iTunes instead? by DrJimbo · · Score: 2, Insightful
      The reason the record companies don't want iTunes to succeed is because its success demonstrates to the world that soon they (RIAA, et. al.) will no longer provide a useful service.

      As others have stated, artists can connect up with iTunes and similar online distributors directly. They can also record their material themselves or use one of the many low cost independent recording studios.

      The whole "economy of scale" argument the record companies have been using for years to rip off artists and listeners alike is now obviously absurd. That argument was the last fig leaf they had left to hide their greed and corruption.

      --
      We don't see the world as it is, we see it as we are.
      -- Anais Nin
    14. Re:How about a share of iTunes instead? by mstone · · Score: 3, Insightful

      Not quite..

      Apple had to spend a long time courting the music industry even to get the iTMS off the drawing board. They did it by making predictions that turned out to be true, over and over again, until a few people in the labels started paying attention. It was a hard struggle, though, because there were plenty of other people willing to tell the labels what they wanted to hear: namely that access controls would work, and that they could bolt all the restrictions of their circles-of-plastic business model onto the online distribution model.

      Well, time and experience showed that the folks at Apple knew what they were talking about. And so people at the labels gradually came to agree that Apple had some idea of what was actually going on.

      Now that the iTMS is big news, though, and the latest iPod gets more press coverage than most of the upcoming movies, ALL the players in the music industry feel the need to haul themselves up on their hind legs and be heard, including the ones who wouldn't have enough brains to poke a stick into an anthill after spending three weeks at a Power Simian business seminar.

      Yeah, the music industry would love to get more money out of Apple if it was basically a matter of letting the (pardon the pun) apple fall out of the tree. NOBODY in business passes up a chance at easy money if they can get it. The sensible people in the music industry, though.. and let's all do them the favor of believing there are some.. are willing to live with the script that runs:

      MUSIC INDUSTRY: Hey Apple, want to give us more money?

      APPLE: No.

      MUSIC INDUSTRY: Okay. Just asking.

      The ones were hearing about now, in this article, are the sub-chimps who just haven't got the clue. They have yet to realize that having one label pull out of the iTMS will hurt that label a whole lot more than it hurts Apple over the long run.

      Apparently game theory is another realm of knowledge the RIIA never bothered to acquire, beause they're now in a prisoner's dilemma they can't escape. The only way the RIAA can hurt Apple is for all the labels to pull out at once, and for all of them to stay out until Apple agrees to the terms of the RIAA as a whole. If only one or two pull out, the ones that remain in will weep crocodile tears all the way to the bank. And sales from the existing catalog don't even begin to touch on the contract concessions the non-participating labels will have to make with artists.. "What do you mean signing with you means my music WON'T go into the iTMS? There ARE other labels out there, you know."

      What we're hearing now are the rumblings of soon-to-be-extinct morons who aren't ready to lie down and have someone shovel dirt onto their faces yet. But die they will, and sooner rather than later. There's too much money in iTMS sales to ignore, and if the big labels insist on pretending that it doesn't exist, artists will find other ways to get their stuff listed with Apple.

      The only two plausible options in this scenario are: A) the labels shut up and let Apple set its price point where it wants, or B) the people who refuse to do business with Apple suffer enough losses that they get fired. Apple has no reason to budge on this issue, every reason to hold its ground, a whole bunch of cash on hand to sit out a potential RIAA embargo, and a much better PR stance vis-a-vis its customers.. Apple: "hey, we just relased the Nano!" RIAA: "hey, we just sued another 750 twelve-year-olds!"

    15. Re:How about a share of iTunes instead? by HuguesT · · Score: 1

      Not in 10 years, that's happening right now.

    16. Re:How about a share of iTunes instead? by Anonymous Coward · · Score: 0

      That should have been "Rest in piss, RIAA."

      To confirm you're not a script,
      please type the word in this image:destroy

  5. The original goal of ITMS.. by ZaBu911 · · Score: 2, Informative

    According to Apple, the original goal of the iTunes Music Store (ITMS) was to sell more iPods. In fact, they didn't expect it to be profitable at all - but now it commands a sizable share of Apple's quarterly revenue.

    1. Re:The original goal of ITMS.. by plasmacutter · · Score: 5, Informative

      no.. that "share" is ipod sales. ITMS barely breaks even.

      --
      VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
    2. Re:The original goal of ITMS.. by ZaBu911 · · Score: 1

      Maybe you're right, but I'm almost positive that there was an announcement stating that ITMS was being started to boost iPod sales.

    3. Re:The original goal of ITMS.. by jessecurry · · Score: 2, Insightful

      yes, of course it would boost iPod sales, but it doesn't make a profit on its own.

      --
      Those who know, do not speak. Those who speak, do not know. ~Lao Tzu
    4. Re:The original goal of ITMS.. by arktos · · Score: 1

      Even if iTMS is/was around break-even for Apple, the record companies are of course getting significant profits, even at 99c. Apple makes money from hardware (iPods), the record companies from the songs. Everybody's, happy, right? Right?

    5. Re:The original goal of ITMS.. by heeeraldo · · Score: 0

      the ITMS could be a large source of revenue for Apple, while not being a large source of profit. iPods, however, are probably both.

    6. Re:The original goal of ITMS.. by TheGreek · · Score: 1

      "Revenue" and "profit" are two different things.

    7. Re:The original goal of ITMS.. by shawnce · · Score: 1

      If you review the following Data Summary Q3 2005 (PDF) you find that ...

      For Q3 2005 (the last quarter on record) Apple had revenues of 241 million from "other music products" which as Apple states consists of "Tunes Music Store sales and iPod related services and accessories". For the same quarter Apple saw revenues of 1,103 million and 1,565 million for iPod and Mac sales respectively. Apple's total revenue for the quarter was 3,520 million.

      So revenues from iTMS for Q3 was no more then 14.6% of total revenues and likely a decent percentage less then that given the volume of Apple made iPod accessories and their prices relative to songs. Also if you do a little math on their song run sate you can guess that iTMS revenues are around 180-200 million dollars a quarter currently.

      To me that doesn't qualify as sizable but it isn't something to sneeze at either.

    8. Re:The original goal of ITMS.. by Ahaldra · · Score: 1
      As I see it, the point is record companies make pure profit on their share of the price, whatever it is. Manufacturing and distribution, traditionally their responsibility, is not an issue for them anymore.
      And yes they are seeing the big successs of the ringtone-sellers, who charge 3 bucks per tonally challenged, abbreviated song and actually get that. So by their logic they should be able to sell their "CD quality" song at 5 bucks.
      What they are essentially trying to do is reimplement the single market into the new medium.

      I wonder if we could manage to take up that opportunity and create a market that is a little better for the artists and get rid of the dinosaurs. podshow is interesting, but they sound a little like they just want to replace one dinosaur with another. I currently have an eye on AMP since their approach somehow feels right. But yes, there are others.

      Sorry I had to feed my pet peeve for a moment. Now were are we? Oh yes, the rec companies wanting their share on ipod sales - wouldn't be a something like the canadian music tax, imposed by some ASCAP-like organisation, be something like that?
      In Canada it seems to be illegal, but is it here?

      --
      Code is Speech. No to Censorship.
  6. sales slump? by nemik · · Score: 1

    and i wonder who will be blamed....

    1. Re:sales slump? by Anonymous Coward · · Score: 0

      Bush!

    2. Re:sales slump? by Anonymous Coward · · Score: 0

      those crazy kids and their p2p programs

  7. Music exces are idiots by Rockenreno · · Score: 3, Insightful

    This just another attempt of theirs to eschew their customers and get a bigger slice of the pie. Methinks their egos have grown too big for their britches.

    --

    Forecast for tomorrow: A few sprinklings of genius with a chance of DOOM!
    1. Re:Music exces are idiots by AKAImBatman · · Score: 1

      My prediction is that Jobs (in true Jobs fashion) won't back down. The Music Execs will then be left with a choice: Either back off, or pull the plug and take it to the next level.

      I'd LOVE to see them take it to the next level. iTunes would add a nice little message on the front that says, "The Music Industry has chosen to prevent sales of Music because they wanted to gouge you, the customer. We at Apple have resisted their arm twisting, and they have responded by shutting down the music store. However, there is something you can do about it. Call XXX-XXX-XXXX and let them know that you will boycott all music purchases until they bring back the 99 cent iTune!"

      Can you imagine the public outrage against the music companies? They aren't exactly liked right now. Throw a little fuel on the fire, and WHOOSH. Bye, bye idiot execs. Your shareholders are calling.

    2. Re:Music exces are idiots by Red+Flayer · · Score: 1

      "This just another attempt of theirs to eschew their customers and get a bigger slice of the pie. Methinks their egos have grown too big for their britches."

      They don't just want a bigger slice of the pie... they also want the pie to be bigger.

      I say, let them set the prices at iTunes... let them figure out the price point to maximize profits for each song. All the less popular, but good, music will be cheaper than $0.99. They still need to compete against the black market, which will swallow a ton of profits unless they keep prices down.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    3. Re:Music exces are idiots by TelJanin · · Score: 1

      They don't just want a bigger slice of the pie... they also want the pie to be bigger.

      Make the pie higher!

    4. Re:Music exces are idiots by MightyMartian · · Score: 2, Insightful
      Well, we'll see whether Jobs has the kahoonas to stand up against the record companies. But I think this ought to put to bed once and for all the illusion that the record industry's actions over the last few years have anything at all to do with music piracy. They don't want to share their cartel, and any new distribution channel is going to be forced to play by their rules, or in essence, become a part of the record cartel.

      I would like to see Jobs, who sells one of the most popular audio devices on the market today, stand up to the record industry, but he's not a man of infinite powers, and you can be sure that the executives, and ultimately shareholders, may not be as bold and willing to put it on the line and call the record industry's bluff. The record industry has already demonstrated that it has essentially bought Washington and a number of other governments around the world. Let's face it, these guys are the latest in a long line of crooks who never lost a night's sleep over robbing artists, cutting unfair contracts, stacking prices and pulling payola stunts. These are corporate bad guys who will use every dirty trick in the book. For Christ's sake, they even sue little kids, so I think ultimately Apple will blink first.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    5. Re:Music exces are idiots by Red+Flayer · · Score: 1

      Is our children listening (to their iPods)?

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    6. Re:Music exces are idiots by Ahnteis · · Score: 1

      All the less popular, but good, music will be cheaper than $0.99

      Are you delusional? This isn't Walmart (Taking over the world one pricecut at a time) we're talking about here. This is the "Yes, we were convicted of high-price-fixing recently" music "industry".

      $0.99 for music that should have gone public domain by now.
      $1.99 for anything that it seems like people actually want to buy in quantity.

    7. Re:Music exces are idiots by lescrimr · · Score: 1

      "I say, let them set the prices at iTunes..."

      Having the producer set the retail prices in illegal in the United States, and there is a good reason for it. It is supposed to help prevent monopolies from forming. That is why everything has a "MSRP" and not an "MRP."

      Record companies don't seem to be very respectful of anti-trust laws though, do they? Or laws in general... can anyone say payola?

    8. Re:Music exces are idiots by AKAImBatman · · Score: 2

      I would like to see Jobs, who sells one of the most popular audio devices on the market today, stand up to the record industry, but he's not a man of infinite powers, and you can be sure that the executives, and ultimately shareholders, may not be as bold and willing to put it on the line and call the record industry's bluff.

      Keep in mind, though, that this is the same guy who keeps his own shareholders out of the development loop. It's not like he's ever been afraid to gruffly tell the shareholders, "You'll understand when we get there."

      You may be right, and Apple may back down first. But if anyone is going to stand up to them, it going to be Jobs. If he fails, these crooks will never be stopped.

    9. Re:Music exces are idiots by FuckTheModerators · · Score: 2, Funny



      This just another attempt of theirs to eschew their customers...

      Methinks you misspelled screw.

      </spelling nazi>

    10. Re:Music exces are idiots by vought · · Score: 0, Offtopic
      They don't just want a bigger slice of the pie... they also want the pie to be bigger.

      Much like our president, the want to make the pie higher.

    11. Re:Music exces are idiots by sedyn · · Score: 1

      "If he fails, these crooks will never be stopped."

      What ever happened to the various Mafias? I know, they're old school criminals. And I know that they aren't as good in the courts as the RIAA. But I do know that they get the job done.

      All I'm saying is that we should give the RIAA a taste of intimidation, it's been their modus operandi for some time now, and payback's a bitch.

      --
      Am I open minded towards open source, or closed minded towards closed source?
    12. Re:Music exces are idiots by ShawnDoc · · Score: 1
      They don't just want a bigger slice of the pie... they also want the pie to be bigger.

      Are you saying Steve Job doesn't want a bigger pie too?

    13. Re:Music exces are idiots by Fulcrum+of+Evil · · Score: 1

      It's not like he's ever been afraid to gruffly tell the shareholders, "You'll understand when we get there."

      Yeah well, he can do that. That's what happens when you make a habit of being right

      /APPL shareholder

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    14. Re:Music exces are idiots by oconnorcjo · · Score: 1
      and you can be sure that the executives, and ultimately shareholders, may not be as bold and willing to put it on the line and call the record industry's bluff.

      I think Steve could easily convince shareholders to back him up if he was to tell shareholders that profit margins could be lower if the record labels are allowed to siphon ipod profits

      --
      I miss the Karma Whores.
    15. Re:Music exces are idiots by arminw · · Score: 1

      .....so I think ultimately Apple will blink first.....

      I hope not. Much depends on what percentage of songs on most customers ipods are from iTMS and what percentage from CDs and other sources including P2P and other files from the Internet, legal or not. I think that ipod sales may drop some, but not all that much if the greedy labels shut down the iTMS. If the plug gets pulled, I hope Apple publicises that as much as they possibly can by giving out the phone numbers of all the top recording co. execs so that their phones can ring continuously for while giving the what amounts to a DOS attack on their phone lines. E-mail might work also.

      --
      All theory is gray
    16. Re:Music exces are idiots by tyme · · Score: 1
      MightyMartian wrote:
      Well, we'll see whether Jobs has the kahoonas to stand up against the record companies.

      Um, what (or who) are "kahoonas"? Are they some indie surfer-rock band from Hawaii, or, prehaps, you were trying to write cojones (which I, at least, have only heard pronouced ka-HON-es, with a long-o as in home). You may, in fact, have meant kahunas , in which case I would have a look at who is on the boards of directors of either Apple or Pixar, but that seems like a bit of a reach.

      Just a nitpick, however, since I thought the rest of your comment was spot on.

      --
      just a ghost in the machine.
    17. Re:Music exces are idiots by Red+Flayer · · Score: 1

      Did you read my post? IF the recording industry wants to maximize their profits, they will price according to a demand curve -- which would mean that low-demand music would be cheaper.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    18. Re:Music exces are idiots by joranbelar · · Score: 1

      Mod parent up, +5 Heaviest Concentration of Mixed Metaphors!

    19. Re:Music exces are idiots by Nefarious+Wheel · · Score: 1
      Um, what (or who) are "kahoonas"?

      "Kahoonas" are god-like Cojones. An ordinary man will have cojones, 1 pair, for the masculine use thereof. Kahoonas belong to the class of businessman who are the equivalent of that little station wagon revving up next to you (ROFL-- Leetle Station Wagon challenges ME?) that secretly has a Rolls-Merlin in the back seat and a Turbonique hydrogen peroxide engine attached to the diff. Organic cocoanuts attached to the driveshafts. Originally from "Kahuna", the God of Surf and people who hear "Tsunami!" and immediately think "Dude! Where's my surfboard?"

      --
      Do not mock my vision of impractical footwear
  8. Yeah, right by rjung2k · · Score: 5, Insightful

    How many hits does the iTunes Music Store get in a day?

    Hell, how many does it get in an hour?

    Good luck walking away from that, Mr. Nash...

    1. Re:Yeah, right by Kjella · · Score: 1

      Good luck walking away from that, Mr. Nash...

      That depends on whether former iTMS customers will purchase CDs or download MP3s instead. Remember, the RIAA has a copyright (read:monopoly) on that specific music, and fans are far more loyal to the band than to the format. The biggest danger would be if Apple replies with a solid campaign for independent artists to make up for all they'd lose. The iPod using people include many of the trendsetters for new music, so that could hurt badly.

      --
      Live today, because you never know what tomorrow brings
    2. Re:Yeah, right by LetterRip · · Score: 2, Interesting

      [QUOTE]Good luck walking away from that, Mr. Nash... [/QUOTE]

      I doubt he is seriously contemplating it, he would be almost sure to be hit by a class action law suit from his investors if he did and would probably lose such a suit.

      LetterRip

    3. Re:Yeah, right by CthulhuDreamer · · Score: 1

      "I doubt he is seriously contemplating it, he would be almost sure to be hit by a class action law suit from his investors if he did and would probably lose such a suit."

      And not just the investors. The artists would probably have grounds to sue since the label is not acting in their best interest and thus voiding their contracts.

  9. He sounds scared by SoCalChris · · Score: 4, Insightful

    'What if Jobs says 39 cents or 29 cents per download - what then?

    Someone is threatening their monopoly.

    1. Re:He sounds scared by Infinityis · · Score: 2, Insightful

      I hope Jobs says something like this, if only to do so "just because he can".

      Apple can survive for awhile without iTunes profit, and people who presently own iPods can still enjoy the music they've already purchased. I'd say let it go a month or so, and see what happens. People who were used to iTunes pricing will now balk at CD prices, so not only are the online sales down, but the CD sales are down too. It won't be long before the the music industry people to come back begging for Apple to take them back.

    2. Re:He sounds scared by WarwickRyan · · Score: 1

      Mod parent up.

      It's plain to see for anyone: the labels control the "traditional" distribution method for music, and built their business around that.

      Now, Apple essentially controls the digital distribution method for music - putting them in exactly the position the labels were in.

      Now that the labels think they've stopped file sharing, they're just going to go back to abusing their existing monopoly to f*** us around again. This being the first step.

    3. Re:He sounds scared by Anonymous Coward · · Score: 1, Insightful

      Someone is threatening their monopoly.

      There certainly is collusion, and unfortunately the woefully inept FTC has probably been encouraged to look the other way respective to any investigation. However, the previous poster's monopoly reference begs an interesting sort of question: is it really an oligopoly (technically it cannot be a monopoly since there is more than one label comprising the "music industry")?

      If you're looking at major pop music labels, there appears to be a tight group of labels. If your music comes from Best Buy and you prefer the latest Michael Jackson, Best of Air Supply, Ace of Base's Greatest Hits and other material of the sort, you very much are purchasing from a tight oligopoly.

      But if your tastes are more on the independent side, such as Metropolis Records, which represents a large component of EBM, industrial/gothic, darkwave, (insert your favorite overgeneralized label here), etc., then you're outside the oligopoly. Considering the music the big boys have been responsible for is increasingly tired, I'd suggest Apple has quite a move to cut out the ineffective, monopolistic major label channel. Consider as an artist if you want to reach 50 million (or whatever) IPod listeners on a label that will probably pay you more, or sign with one of the tired old labels who will spend most of their budget trying to put lips on Madonna's latest pig album. When distribution no longer effectively distributes, they die. Someone might want to remind the tired old labels that they're suffering the same death spiral the newspapers and broadcast TV networks are by losing focus of their role as quality content distributor and instead believing they are the medium.

      Jobs needs to quietly sign directly with the independent labels and then announce that artists on the old labels simply won't get "airplay" through IPod distribution. Combine that with the seriously confused copy-protection efforts by major distributors that impedes the ability of the music to be listened to on handheld devices and you're relegating many artists to the shelves of Walmart where an occasional senior citizen might accidentally buy their work. For artists, it's time to run, not walk, from the major labels (do you think they'll stand by you when you only sell 3,000 units due to their inferior market channels? Bomb an album due to poor distribution and you're done for).

    4. Re:He sounds scared by Vexar · · Score: 1

      I get the distinct impression that if I ever met a typical record company executive, I would not like that person at all. This greed is absolutely disgusting. Poor Apple, all they want to do is make cool hardware.

    5. Re:He sounds scared by at_slashdot · · Score: 1

      "What if Jobs says 39 cents or 29 cents per download - what then?

      Someone is threatening their monopoly."


      I don't know almost anything about the industry (except that I listen music from time to time) but I would guess that could say "No". Since it's a monopoly what can Steve do about it? If they raise the prices Steve can say "No" and it would hurt them, but there are plenty of other MP3 players and music sellers.

      --
      "It is our choices, Harry, that show what we truly are, far more than our abilities." -- Prof. Dumbledore
    6. Re:He sounds scared by Anonymous Coward · · Score: 0

      I call bullshit.

      Look at the price of gas. We've been used to "low" gas prices for so long, and now the price has literally doubled in the past year or so. Now gas is expensive. And people piss and they moan and they blame everyone but themselves, and yet day after day after day I see the same SUV's, large trucks, and ridiculously-over-the-speed-limit drivers, all with one person in the car, zipping to and fro.

      The point is, prices rise, people make more money, and then they go out and blow their wad on the same things they've been blowing it on. Your average person is an idiot. Sure, iTunesMS is easier, but if they can't get it there, and P2P is too dangerous, they'll go back to the store and buy over-priced CD's and that will be that.

      What really scares me about all of this is that somewhere along the line, the labels are going to decide to bail on CD's altogether, or produce them in such limited numbers that they can litterally charge $30 apiece for "high fidelity" music.

    7. Re:He sounds scared by gecco · · Score: 0
      Just not true in practice, on two accounts:

      1) iPod has nearly 80% of worldwide mp3 player market share, and about the same share of online music sales. That won't change overnight. Pulling out of iTunes music store is like refusing to sell your product at WalMart - it doesn't hurt WalMart, it puts you out of business. And,

      2) iTunes Music Store sales are still a paltry percentage of Apple's profits. Even if Apple stopped making ANY money from the music store immediately, it wouldn't strongly affect them. So even if ALL of the labels kept their music away from Apple, they'd only be stealing the icing - Apple would still have the cake.

    8. Re:He sounds scared by tricorn · · Score: 1

      iTMS profit is somewhere around 0.4% of the gross profit, and that's assuming cost of sales is only what they pay to the labels. I think they can survive for a hell of a long time without it. Even if you take it straight out of their pre-tax net income, without assigning any R&D, marketing or operational costs to it, it's still only about 2%.

  10. I can see it now.... by pmj · · Score: 1

    Apple/iTMS to become a ``record label.'' Maybe they'll just buy Apple Records and get it over with. :)

    --
    Are you BioCurious?
  11. don't blink, Apple by yagu · · Score: 4, Interesting

    Upfront disclaimer: I'm a total idiot, and I have no idea how businesses work, nor do I have any legal background.

    So, I wonder if this is a confrontation Apple may welcome, and maybe even brought semi-intentionally. My hunch is the thesis: iPods generate sales, rather than download sales generate iPod sales is the more correct dynamic at work in this market.

    There certainly are plenty of alternative sources of music, music that could temporarily replace the current source for iTunes, should the music industry call Apple's bluff. But I think the music industry stands to lose way more than Apple. The music industry could:

    • lose revenue
    • lose confidence of the consumers
    • lose artists
    • lose relevance
    Apple, on the other hand still offers a sweet product (even a sweet suite of products) and there are myriad ways to get music onto their devices. Sure, a speedbump in iTunes could require a detour, but I think Apple faces little risk. Apple could be the huge winner here. In my opinion, Apple already is at least the winner, they've dared not to blink and the music industry is starting to look silly.

    Me, I refuse to play one way or the other with any of DRM markets, but I give Apple grudging credit for offering a palatible product and willingness to take on the hand that feeds.

    1. Re:don't blink, Apple by plasmacutter · · Score: 1

      decent assessment, but I own an ipod and it has not drm/speedbumps. It will however play fairplay encoded files. This is very much in the same way a dvd player plays css encrypted dvd's, but will still play the unencrypted ones you author with dvd-x-copy or nero.

      That said, itunes itself was restricted when they incorporated the music store. Pre-music store itunes used to have a web streaming feature which was summarily stripped out at the indutry's behest. to get a bit off topic, i think apple should be removing the store from itunes itself and making it a separate app so we mac users can have the full functionality of our original music player.

      --
      VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
    2. Re:don't blink, Apple by LnxAddct · · Score: 5, Interesting

      Steve Jobs could potentially become the poster boy for our generation from this. If the record labels do pull out, all Steve Jobs has to do is stand up on a soap box and say

      "Look everyone, I tried my hardest to make it easy and affordable for you to get music over the internet. We had succeeded at this and we revolutionized the industry. You and me showed the world that if you were given the choice to affordably download music that you'll choose that over pirating. Alas, the music industry has become extremely greedy. Their profit margins are already extremely inflated and they just want more money. The only option they left open for variable pricing was price increases, but where are the price decreases? It costs them nothing to distribute music this way, its cuts out the cost of the CD, the CD case, the label in the case, the cost of shipping, the cost of manufacturing. It is saving them extreme amounts of money, but they are just becoming greedier. As a result I hope we can all band together and boycott the RIAA, Sony, Warner, etc... Obtain your music through alternate channels, rip it off your old CDs, do what you must but please don't support these labels."

      He would instantly be praised and supported by millions of teens and twentysomethings, cutting nearly completely into the record label's profits. On the other hand, Apple could also simply start their own music label and really rock the industry.
      Regards,
      Steve

    3. Re:don't blink, Apple by FFFish · · Score: 3, Insightful

      I daresay Apple could fully well step right into RIAA's territory and sign up artists for exclusive distribution. I know if I were choosing a rep, it'd be someone like Apple, which would very likely strike a win-win deal that enables me to make a good living as an artist; than someone like RIAA, which I know will do everything in its power to fuck me over and leave me indebted to them.

      I should go find out what happened between Apple Computers and Apple Records. I'm a little surprised Apple is in the music business, given their original agreement with Apple Records was to stay well the hell out of anything that looked like music.

      If Apple were smart enough to have just bought AR outright, they might very well already have a mechanism in place to support artists. And that, my friends, would be the start of the entertainment revolution: independents who can make a good solid living from their work.

      --

      --
      Don't like it? Respond with words, not karma.
    4. Re:don't blink, Apple by ArbitraryConstant · · Score: 3, Insightful

      I don't know if you're an idiot or not but it doesn't look like it from your post.

      I think Apple will ultimately cave, but they want to make the labels look as bad as possible before that. Apple's actions to date support that theory, because the longer and more public the battle is the worse the labels will look. Apple can make the labels look bad without actually saying anything that can get them sued.

      Towards that end they may be putting up a fight over issues they are ultimately prepared to accept, like variable pricing. I don't think Apple's motives are altruistic (I think they mostly want to rip people off on iPods instead of on music), but if this is a battle for public opinion, an already poorly regarded industry is going up against probably one of the best PR companies there is.

      --
      I rarely criticize things I don't care about.
    5. Re:don't blink, Apple by farble1670 · · Score: 1

      i sort of disagree with you. i believe that the ipod-itunes duo is what drives sales for apple. they feed into each. both ipod and itunes dominate their respective markets. you might buy an ipod because it gives you such a nice experience when you use itunes. or you might use itunes because it works so well with your ipod. either way, apple wins.

    6. Re:don't blink, Apple by RLiegh · · Score: 1, Troll

      So, does he throw fifty dollar bills to the crowd during this silloquy or does he throw hundreds? and after he's made his speech does he don a red suit and ride off into the night sky on a sleigh pulled by raindeer?

      Any time you want to drop the fan boy fantasies and join the rest of us here on Terra Firma you're more than welcome to do so. ;)

    7. Re:don't blink, Apple by Anonymous Coward · · Score: 0

      Steve Jobs could potentially become the poster boy for our generation from this. If the record labels do pull out, all Steve Jobs has to do is stand up on a soap box and say

      Are you fucking insane? Apple is already the record industry's bitch. Apple introduced DRM, and they are introducing trusted computing (anti-consumer right to its very core) into their new platform. Jobs has already caved into the music industry... this tiff is just a negotiating tactic. Apple has already been bought, this is just a minor price discussion.

      Your laughable attempt to elevate Jobs into some kind of folk hero for the consumer is pitiful. Apple zealots... my god... where do they find you.

    8. Re:don't blink, Apple by Anonymous Coward · · Score: 2, Funny

      Heh, they could call it APPLE RECORDS.

    9. Re:don't blink, Apple by Anonymous Coward · · Score: 1, Informative

      It costs them nothing to distribute music this way...

      Servers aren't free.

    10. Re:don't blink, Apple by m93 · · Score: 1

      "Apple could also simply start their own music label and really rock the industry."

      Nope, sorry, they signed a deal with The Beatles' Apple record company saying that they would not invest in any type of music venture. If I recall, that is being debated now in regards to the current iTunes business.

    11. Re:don't blink, Apple by chris_eineke · · Score: 1
      On the other hand, Apple could also simply start their own music label and really rock the industry.
      Actually, they can't. Apple Recordings Inc. is the official label of the Beatles. Back in the day Apple had to sign an agreement never to use the Apple brand to form a label or do anything music related. I don't know how they got past that agreement with the iTunes music store, but I am damn sure that they can't start a label.
      --
      "All you have to do is be fragile and grateful. So stay the underdog." Chuck Palahniuk, Choke
    12. Re:don't blink, Apple by memoryman · · Score: 1

      unfortunately, without a battle -vs- the Beatles, Apple can't legally start a record label.

    13. Re:don't blink, Apple by earnest+murderer · · Score: 1
      Servers aren't free.

      In terms of volume, they're pretty damn close.

      --
      Platform advocacy is like choosing a favorite severely developmentally disabled child.
    14. Re:don't blink, Apple by oudzeeman · · Score: 1

      what if Apple Computer bought Apple Records (or Apple Music or whatever the're called)?

    15. Re:don't blink, Apple by Maxo-Texas · · Score: 1, Interesting

      The modern generation has no loyalty to give.

      Just like in EQ, "They'll always be buds with Jobs" until he isn't giving them something and then they will immediately move on to a new person who is.

      I'm not sure where the lack of loyalty comes from - perhaps it's business that started it (It is pretty stupid to be loyal to a business as an employee these days). I'm not even sure the lack of loyalty is a bad thing- loyalty was basically mined for it's value by asshats during most of the 80's and 90's.

      Jobs and Apple needs the revenue from iPod. Their stock will crash if it becomes apparent they have lost iPod sales.

      Music companies- just like Disney- just like any business today- are pretty ruthless about yield management. Businesses learned- people lie. Metrics tell the truth. The look at the absolute sweet spot of price where they maximize profits. If that means 90% of the people can buy their product- great. If it means 90% of the people can NOT buy their product- great.

      So if they make more profit on less sales at $1.39 per song then they want to charge that.

      And by the way... .99 a song is a JOKE. It is WAY to expensive. Your average person can easily want 10,000 songs. Your average DVD could easily accommodate 5,000 songs at a production cost of about $1.00. MOST of the songs you are paying money for are at least 30 years old. In many cases, the original artists are dead.

      So anyone being distracted by the hand waving over a .99 to 1.39 has already missed the point that songs should probably be 19.99 for "Everything recorded in the 1950's" instead of the way they are selling them.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    16. Re:don't blink, Apple by Krach42 · · Score: 2, Insightful

      "On the other hand, Apple could also simply start their own music label and really rock the industry."

      They can't, there's already an Apple record label, and they own the IP that was produced by the Beattles.

      Apple (music) sued Apple (computers) when they first attached speakers to their computers, claiming that people could mistake the two companies. The settlement was that Apple (music) would stop being so whiney, and Apple (computers) would not get involved into the actual music industry.

      Now, with Apple (computers) running iTMS, and the iPod, you can argue that they've gotten into the music industry. In fact, Apple (music) sued (is suing?) Apple (computers) again over this. Apple (computers) still has a leg to stand on, because they're not producing or owning music, they're just distributing it for the Music Industry.

      There is no doubt in my mind that if Apple (computers) started their own label, that they'd have absolutely no legal leg to stand on, and would be either a) screwed, or b) forced to change the name, so it doesn't conflict with Apple (music), in which case they lose the brand name, and lose.

      --

      I am unamerican, and proud of it!
    17. Re:don't blink, Apple by radiotalent · · Score: 2, Informative
      It costs them nothing to distribute music this way...

      Servers aren't free.

      Since they are Apple's servers, it costs them (the labels) nothing to distribute music this way. While there is the issue that Apple is taking a cut, the real point is that music via download does cost less to distribute than music via physical media. But the labels want to be paid the same for music from either source, and not pass on any of their reduced costs. Of course, we ought to be used to this by now since CDs were priced significantly above that of cassette tapes, despite the fact that the manufacturing cost for a cassette was above that of a CD.
    18. Re:don't blink, Apple by oolon · · Score: 1

      Infact iTunes requires ISRC codes for your music to be listed, this results in restricting the ammount of indy music that is available on iTunes, and ensures the RIAA gets a cut of the majority of music on the service. MusicNet (the basis of services provied by HMV and Virgin) do not have that restriction. Apple are the major's friends, its a shame they cannot see that.

      James

    19. Re:don't blink, Apple by Nasarius · · Score: 1
      I'm not sure where the lack of loyalty comes from - perhaps it's business that started it (It is pretty stupid to be loyal to a business as an employee these days).

      Or maybe people just realized that being "loyal" to someone who doesn't even know you personally doesn't make the slightest bit of sense. Even if Steve Jobs shares your ideals (and that's a very big if), he doesn't give a fuck about you.

      --
      LOAD "SIG",8,1
    20. Re:don't blink, Apple by Thrudheim · · Score: 1

      I agree that if Jobs plays his cards right he could be the most prominent advocate for consumers against the record lables. In that PR battle, it's not too hard to figure out who will win. All these quotes coming from the label execs are only solidifying the notion of them as anachronistic, greedy fools.

      By the time the contract with the labels expires, Apple will have sold 1 billion downloads. That is huge. Jobs will be able to make a strong case that he bailed the labels out when they couldn't get their acts together.

    21. Re:don't blink, Apple by Anonymous Coward · · Score: 0

      I don't believe all of the Beatles nonsense precludes Steve from starting a label of his own not named specifically Apple.

    22. Re:don't blink, Apple by killjoe · · Score: 1

      Why couldn't apple the computer company buy apple the record company and put this to rest forever. They have several billion in cash and lots of stock to trade.

      Alternatively there is no way in hell "iTunes music lable" would conflict with the apple records trademark. So maybe there is no reason to buy them, you can simply tell to go fuck themselves knowing full well you would win any trademark dispute.

      --
      evil is as evil does
    23. Re:don't blink, Apple by Anonymous Coward · · Score: 0

      So they launch another brand, keeping the apple brand name away from it. Call the brand podMusic or something.

    24. Re:don't blink, Apple by ScrewMaster · · Score: 1

      I agree with most of what you say, but why would you assume that the brand name for a studio would be so all-fired important? All artists want is a fair shake at making a living and a good studio environment to produce their music. Jobs could call his studio "Fuckwit Music, Inc." and if he actually offers the musicians a decent deal (which wouldn't have to be much, considering the way they're treated now) he'd be rolling in RIAA-free music. Yes, the brand name "Apple" is magic when it comes to selling overpriced computers and music players to overpaid yuppies, but it doesn't mean anything in particular to a musician looking for a place to hawk his wares. Once the word got out on the street that Fuckwit Studios, Inc. is the place to go, and gee, if you let them sell your music on iTunes you make an extra couple percent ... well. I don't think the lack of the word Apple will make much difference.

      --
      The higher the technology, the sharper that two-edged sword.
    25. Re:don't blink, Apple by Anonymous Coward · · Score: 0

      Buy that Fu*Kup Beatles label!

    26. Re:don't blink, Apple by JohnsonWax · · Score: 1

      First, Steve Jobs does not blink. In fact, he is far more disciplined on challenges like this than any executive I can think of and has a remarkable habit of landing seemingly impossible deals. His Pixar deal with Disney was almost unheard of.

      Second, the conflict here is not as significant as some are making it out to be. Steve has acknowledged that tiered pricing is the likely future of online music. He just thinks that the market is not yet mature enough to support that model and that the single-price model should stay for a while longer. There are some practical issues to this as well:

      1) iTMS offers over 1M tracks to purchase. There are numerous variations of some tracks. Will Apple have to negotiate the pricing on all 1M+ tracks? How often can pricing change? Will Apple be responding to pricing changes based on tracks hitting and falling off Billboard charts? Sell-through rates? Marketing campaigns? How many pricing errors will result from this?

      I can see Apple having to press labels to reduce their wholesale prices for $.99 songs simply to cover the administrative overhead to maintain this system. Remember, Apple can't 'fix' the retail price for the labels - so a $.99 vs. $1.29 song has to be a reflection of the price charged to Apple by the labels.

      2) Will consumers be faced with idiotic pricing scenarios? Will BandX just released 'Greatest Hits' tracks be priced at $1.29 when the original (identical but not remastered) tracks be easily assembled for $.99 each? What of other alternate versions on movie soundtracks, etc. When the files are virtually identical but cost different amounts, it only serves to infuriate your customers as you provide them with a simple (if annoying) means to undermine your efforts of getting more money. Why not just price everything the same to begin with?

      So, bottom line, Steve doesn't blink. But at the same time, I don't think this is one of those issues that Steve feels so strongly about that he'll go balls-to-the-wall to hold to the $.99. But there's no fucking way anyone is getting any iPod cut - that's an overreach by the labels so they can negotiate back to variable pricing and leave everyone claiming that they salvaged something from this.

    27. Re:don't blink, Apple by Myopic · · Score: 1

      music industry profits are not inflated, compared to many markets
      the cost of the cd, case, and label are trivial shares of the cost of producing an album
      itunes music store does not save the industry extreme amounts of money

      the industry, however, is still greedy, inefficient, backward, undemocratic, bad for artists, bad for music, bad for consumers, and evil.

    28. Re:don't blink, Apple by surprise_audit · · Score: 1

      Talking of making the labels look bad, I don't see how this *isn't* a blatant attempt at illegal price fixing. Is it simply because it's right out in the open, instead of being a conspiracy between two or more companies??

    29. Re:don't blink, Apple by Doktor+Memory · · Score: 1

      The Apple vs Apple deal is currently back in court again, for reasons that have everything to do with the iPod and the iTMS.

      I'm honestly surprised that Apple Computer hasn't simply made a cash tender offer for Apple Records at this point.

      --

      News for Nerds. Stuff that Matters? Like hell.

    30. Re:don't blink, Apple by ArbitraryConstant · · Score: 1

      "Talking of making the labels look bad, I don't see how this *isn't* a blatant attempt at illegal price fixing."

      Business as usual.

      --
      I rarely criticize things I don't care about.
    31. Re:don't blink, Apple by ruiner13 · · Score: 1

      Have you seen the teens today? Most of them would go into anaphylactic shock if they were to be suddenly removed from the feeding tubes implanted by the eMpTyV people and thir dealers at the Record Industry Ass. of America. I'm not sure it would be quite the success you think it would be.

      --

      today is spelling optional day.

    32. Re:don't blink, Apple by addie · · Score: 1

      On the other hand, Apple could also simply start their own music label and really rock the industry.

      As I understand it, Apple couldn't legally create their own music label due to an agreement made with Apple Records in the 80's.

      See this article for more information.

    33. Re:don't blink, Apple by NidStyles · · Score: 0

      Being that Jobs also heads Pixar, he still mat have another avenue to start a record label without starting a new venture outside of Apple.

      --
      Yes, I said it.
    34. Re:don't blink, Apple by Krach42 · · Score: 1

      Yeah, because I totally heard that Switchfoot would have gone with Sony if they had been called "Fuckwit Records."

      Believe it or not, there is a lot in a name, part of iTMS, and iPod's success has to do with the Apple brand name, not just because it's a good product providing a service people want. People are simple things en masse. Name means a lot to them.

      If Apple started a new record label, but named it something else, they would have to build name credit. At least with using the Apple moniker, they would have some credit already.

      --

      I am unamerican, and proud of it!
    35. Re:don't blink, Apple by hopethisnickisnottak · · Score: 1

      Their profit margins are already extremely inflated and they just want more money.

      Was I asleep for the past 5 years or has the US of A suddenly become a socialist republic where the price of products and profit margins are decreed by the people's will instead of by the producer's whims?

      AFAIK, in a capitalist society, it is the producer's (or in this case, the copyright holder's) prerogative to decide the price (and therefore, the profit margin) of his / her product. The price decides the popularity of the product (or the popularity decides the price) and hence profits. It is none of your business to complain about inflated profit margins.

      --
      -Shaunak
    36. Re:don't blink, Apple by 10Ghz · · Score: 1
      And by the way... .99 a song is a JOKE. It is WAY to expensive.


      ITMS requires massive amounts of bandwith, and that costs money. It requires lots and lots of hard-drive space and servers, and those cost money. Apple needs to pay to record-companies and the artists, and that costs money. They need to pay the salaries of people who run the store and the infrastructure, and that costs money. And they even have to make profit on the store as well. Apple earns few cents for every song, if they decided to not earn any profit from the songs, the price of one song would drop to about 90-95 cents.
      --
      Lesbian Nazi Hookers Abducted by UFOs and Forced Into Weight Loss Programs - -all next week on Town Talk.
    37. Re:don't blink, Apple by iceanfire · · Score: 1

      I guess you didn't read the date of the article: 09.12.03

    38. Re:don't blink, Apple by shish · · Score: 1
      .99 a song is a JOKE

      Back a couple of years ago, people were saying things like "$3 is a joke, reduce the price to something like .99 and everyone'll be more than happy to pay such cheap rates"...

      --
      I mod down anyone who says "I will be modded down for this", regardless of the rest of their comment
    39. Re:don't blink, Apple by Maxo-Texas · · Score: 1

      What is the -cost- of putting every song from 1978 back on DVD?

      By the original copyright law, all of those songs would be public domain now. Who exactly do you think we are paying? Many of the artists are dead. Many of the songs have been bought -multiple times- by people on 8-track, cassette, vinyl record, and CD.

      How have they brainwashed people into thinking music is something you should rent forever?

      It's truly crazy.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    40. Re:don't blink, Apple by Maxo-Texas · · Score: 1

      I agree with you on apple.

      The rough break down is 34 cents apple, 55 cents record industry leaving 10 cents for the artists.

      WTF? 55 cents to sell records which have already been profitable since the early 80's? 55 cents of pure profit??? (It all goes into salaries- Apple is paying for the infrastructure out of their 34 cents).

      Obviously a fair price would be "infrastructure" + 10 cents apple + 10 cents recording industry + 10 cents artist since they seem to think that the people who created the music in the first place are only due 10 cents.

      Even at those prices anything before 1978 should be PD and sold in mass quantities on DVD. These prices are completely artificial. There is no reason for them to be so high. You can EASILY see they are high because of the wealth they are accumulating- if the prices were fair, they would be living upper-class but not wealthy- taking home a few hundred thousand a year but not 20 million a year. The system is broken and change is coming from competition outside of their monopoly locked in distribution channels.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    41. Re:don't blink, Apple by apetime · · Score: 1

      Apple already has caved. On the Japanese iTMS, the price depends on the particular song. So what the labels are saying is "if you can do it there, you can do it here."

    42. Re:don't blink, Apple by 10Ghz · · Score: 1
      Even at those prices anything before 1978 should be PD and sold in mass quantities on DVD.


      Go talk to your legislators about that. there's very little Apple can do there.
      --
      Lesbian Nazi Hookers Abducted by UFOs and Forced Into Weight Loss Programs - -all next week on Town Talk.
    43. Re:don't blink, Apple by laughingcoyote · · Score: 1

      Whether or not you support unfettered capitalism, it is ALWAYS the right of the consumer to complain that the price is too high. Back under the bridge with the other trolls, please.

      --
      To fight the war on terror, stop being afraid.
    44. Re:don't blink, Apple by canadianlinuxnerd · · Score: 1

      This is certainly possible, also I think the deal with the beatles only precludes Apple from entering the music business using the Apple name, Itunes Records anyone?

  12. The music industry is stupid enough to do this... by mspohr · · Score: 4, Insightful
    Having observed their behavior in the past, I fully believe that the music industry really believes that they are doing Apple a favor and that they can cut Apple off.

    If they close iTunes, iPod users will just rip their own music (and share it) leaving 0 revenue.

    --
    I don't read your sig. Why are you reading mine?
  13. Legal action for price fixing? by CyricZ · · Score: 2, Interesting

    Perhaps legal action could be taken on the basis of price fixing/gouging if they were to actually drop Apple because Apple would not sell at the price the industry demanded?

    --
    Cyric Zndovzny at your service.
    1. Re:Legal action for price fixing? by networkBoy · · Score: 2, Insightful

      To finish your sentance: as opposed to the price that the market sets.

      The problem is that other than a couple on-line wanabies and a grey source (allofmp3) the apple store is the only source. The monopoly still exists.

      What we really need is another eStore to open, selling comparible (and compatible DRM) music at slightly lower prices (97c anybody). Let the market open and the pricewar evolve. shortly one of the two will pick up the 'variable price per song based on download rate as a measure of popularity' method on their own. At that point the RIAA's attempts to shut down either become clear anti-trust.

      What I don't know is why can't this happen? Apple licencing of DRM? or record execs (RIAA) being a PITA?
      Why can't I start selling music on my own, just set up shop and go?
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    2. Re:Legal action for price fixing? by Infinityis · · Score: 2, Insightful

      Your comment makes it sound as though the RIAA does not already employ price gouging on CDs. When they all work together to set a price, and then complain that people aren't buying, that's a price fixing at it's finest.

      If the RIAA had their way, they'd have a cut of everyone's taxes go towards "artist appreciation" (i.e. their pockets) to offset their estimated losses from pirating. And they'd still charge for CDs, downloaded songs, etc.

    3. Re:Legal action for price fixing? by rainman_bc · · Score: 1

      97c anybody

      Didn't wal-mart try that price point, only to back out?

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
    4. Re:Legal action for price fixing? by LocoMan · · Score: 1

      A little bit of both. Record exects being a PITA by not allowing digital music to be sold without some kind of DRM, and the iPod being the digital player owned by about 90% of the potential market, the main other form of DRM (WMA) not being compatible with iPods, and apple refusing to license their form of DRM.

    5. Re:Legal action for price fixing? by networkBoy · · Score: 1

      Right, so there are two problems:
      Apple not licnecing DRM and the RIAA
      How does the RIAA enforce the price point of music?
      Stipulating that I have iPod DRM compatibility in my pocket and all I have to overcome is the RIAA, how would I do that?
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    6. Re:Legal action for price fixing? by Synbiosis · · Score: 1

      Not going to happen, because Apple is extremely protective of FairPlay (Their DRM scheme). When Real made their songs iPod compatible, Apple immediately released an update that made Real's songs incompatible.

      I think the only solution would be a standardized DRM scheme that could be attached to any type of codec, be it WMA, AAC, or MP3, but I really don't see Apple licencing Fairplay to other companies or paying Microsoft for WM10 DRM compatibility (even though MS practically gives it away).

  14. they want profits from ipod? by Anonymous Coward · · Score: 1, Interesting

    If they did that, jobs would give the RIAA a big "go fuck yourself" and sell ipods at cost for a while...

    1. Re:they want profits from ipod? by Spy+der+Mann · · Score: 2, Interesting

      if they did that, Jobs would give the RIAA a big "go fuck yourself" and sell ipods at cost for a while

      Worse! Steve Jobs could make HIS OWN RECORDING COMPANY! *GASP*
      RIAA, meet your nemesis.

      (Boy, these times are getting more and more interesting)

    2. Re:they want profits from ipod? by Angstroem · · Score: 2, Interesting
      Worse! Steve Jobs could make HIS OWN RECORDING COMPANY! *GASP*
      RIAA, meet your nemesis.
      Oh, in that case: Apple Computers, meet Apple Records...
    3. Re:they want profits from ipod? by elhondo · · Score: 1

      Wouldn't they get sued by the Beatles at that point? I thought they couldn't use the Apple trademark in the recording business.

    4. Re:they want profits from ipod? by Angstroem · · Score: 1

      Exactly.

    5. Re:they want profits from ipod? by SoupIsGoodFood_42 · · Score: 1

      Who says they have to use the "Apple" name?

    6. Re:they want profits from ipod? by Nasarius · · Score: 1
      Worse! Steve Jobs could make HIS OWN RECORDING COMPANY! *GASP*
      RIAA, meet your nemesis.

      You know, sitting back and screwing over the artists while the money rolls in isn't the only thing that record labels do. There's a massive amount of work involved in promotion. If Apple wants to offer a very basic service that only involves putting your independently-created songs on iTMS (and hopefully a good deal on CD duplication), well sure, they could do that. But you'll be touring constantly just to get your name out there.

      --
      LOAD "SIG",8,1
  15. Finally... by Ikn · · Score: 3, Insightful

    The recording industry is 'picking on someone it's own size'. Apple may not be able to really compare equally with the entire industry, but it has enough notoriety, money, marke share, and general influence that I don't think the RIAA or anyone else is really going to want to get into a legal / PR brawl with them.

    --
    I know nothing
  16. Killing the Goose that Laid the Golden Egg by metternich · · Score: 5, Insightful

    It's probably just a bluff, but if the Music Industry does go through with this it would be incredibly stupid of them. I know it would be contrary to their agreements with Apple Records, but if the music execs do go ahead with this, I think Apple should start selling music directly from the musicians rather than going through the labels. They could simultaneously reduce the prices and give the musicians much more than they get under their current contracts.

    --
    Facts do not cease to exist because they are ignored.
    1. Re:Killing the Goose that Laid the Golden Egg by Anonymous Coward · · Score: 0

      Musicians with big label contracts have puppet strings firmly attached. Sure, they might like to make more money via direct sales through Apple but the sales side of the music biz is 98% promotion, not fan devotion.

    2. Re:Killing the Goose that Laid the Golden Egg by nine-times · · Score: 1
      I think Apple should start selling music directly from the musicians rather than going through the labels.

      Can't they already do this, so long as the music is already produced? Like, if I was a musician, producing my own album, couldn't I just claim to be my own label and try to get it on iTMS (taking the cut for both the label and artist)?

    3. Re:Killing the Goose that Laid the Golden Egg by Soul-Burn666 · · Score: 5, Interesting

      They should do what some slashdotter wrote a while ago.
      When you select songs, the song price should be written and additionally the break-up of where the money goes. When they see 9c to apple, 90c to the record company and 1c to the artist, they'll understand something is wrong.
      Then they'll see indie labels, 10c to apple, 40c to record comapny, 50c to artist.
      And then indie artists, 10c to apple, 90c to artist.

      --
      ^_^
    4. Re:Killing the Goose that Laid the Golden Egg by karnifex · · Score: 2, Informative

      If Apple bypassed the labels, they'd only be able to sell new material. Artists contracted with the labels don't own their prior work - the labels do. A musician can't say to Warner, "I'm going to sell my music on iTMS whether you like it or not" because Warner owns the music that has been produced under contract, not said musician. He'd have to go out and produce original tunes to sell - without any contract guarantees.

    5. Re:Killing the Goose that Laid the Golden Egg by Steven+W00ston · · Score: 0

      haha you said "apple" and "reduce the prices"

      --
      Steven Wooston, Lead Programmer, J-J-J-Julius Games
      Author of a CONSIDERABLE number of best-selling games
    6. Re:Killing the Goose that Laid the Golden Egg by Soko · · Score: 4, Interesting

      Musicians with big label contracts have puppet strings firmly attached. Sure, they might like to make more money via direct sales through Apple but the sales side of the music biz is 98% promotion, not fan devotion.

      I agree with your statement, but consider this:

      If the RIAA takes its ball and goes home, Apple will be able to only promote artists who aren't currently under RIAA control. Crap coming from the teen-idol production machine and manufactured "counter-culture" crap that the RIAA promotes (think "St. Anger" *PUKE*) wouldn't be on iTunes. The artist would then have a sizeable captive audience without the RIAA controlling who's popular and who's not. IOW, Apple just might have the needed intertia to compete with the RIAA itself, and give the artists more control over thier destiny.

      I say that's a good thing.

      Soko

      --
      "Depression is merely anger without enthusiasm." - Anonymous
    7. Re:Killing the Goose that Laid the Golden Egg by Afecks · · Score: 1

      I say fuck all that. Download entire albums and then mail (anonymously) the bands $15 (cash) if you feel it was worth it. I dare them not to spend the money.

    8. Re:Killing the Goose that Laid the Golden Egg by Reality+Master+101 · · Score: 1
      Where does this idea come from that eveything the RIAA produces is crap, and everything independent is good? No one cares that you don't like popular music, and prefer obscure music. What matters is what the majority of people buy, and the majority of people buy music from the record labels. The VAST majority of music on your favorite music sharing site is mainstream music. That's what sells, and that's what people want (and personally, I think mainstream artists are mainstream for a reason, but that's off the topic).

      The RIAA is right about one thing: iTunes is puny to the overall music market. There is no way most artists would "sign" with iTunes rather than sign with the big boys, assuming they actually want good sizes sales.

      --
      Sometimes it's best to just let stupid people be stupid.
    9. Re:Killing the Goose that Laid the Golden Egg by hackstraw · · Score: 1

      I know it would be contrary to their agreements with Apple Records, but if the music execs do go ahead with this, I think Apple should start selling music directly from the musicians rather than going through the labels.

      Yes, its a PITA that Apple records and Apple computer have this legal dispute. Maybe its in Apple computer's best interest to sell the iTunes portion of their business and then have them directly sell music from the artists.

      Oh, remind me again why we need the record industry?

      In all honesty, it may actually improve creativity and quantity of music. Can't come up with enough material for an album. No problem, just sell what you have to iTunes. Its still something.

    10. Re:Killing the Goose that Laid the Golden Egg by Soko · · Score: 1

      Where does this idea come from that eveything the RIAA produces is crap, and everything independent is good? No one cares that you don't like popular music, and prefer obscure music.

      I never said mainstream music was all crap, or all indy music was good, I said that there is some real trash being made popular by promotion, not artistry. I also happen to like a lot of the main stream music produced today, but shit like "St. Anger" to me means the RIAA is about profits, not music.

      What matters is what the majority of people buy, and the majority of people buy music from the record labels. The VAST majority of music on your favorite music sharing site is mainstream music. That's what sells, and that's what people want (and personally, I think mainstream artists are mainstream for a reason, but that's off the topic).

      Those artists are mainstream only because an RIAA member company said they'd be mainstream - the marketing dept. has little care for anything that doesn't sell. If an artist makes music that's even better than a mainstream artist, but refuses to do business the way the RIAA wants, they'll never be mainstream.

      The RIAA is right about one thing: iTunes is puny to the overall music market. There is no way most artists would "sign" with iTunes rather than sign with the big boys, assuming they actually want good sizes sales.

      Perhaps - but 2 or 3 million iTunes users is a really nice audience to have. My point was that the RIAA should be careful, or they could create thier worst nightmare by exluding iTunes.

      Soko

      --
      "Depression is merely anger without enthusiasm." - Anonymous
    11. Re:Killing the Goose that Laid the Golden Egg by littlerubberfeet · · Score: 1

      Actually, the price breakdown is a little different...But you are prefectly correct. I have heard numbers between 22 and 35 cents for apple's cut. The other 65-78% goes to artists and record companies. Artists will get around 12% of the remainder, minus deductions, so about 6-10% of the 65-78%. Indies do quite a bit better, giving their artists anywhere from 20-70% of online distribution profit.

      Also, it should be noted that a lot of indie record companies do a lot more for their artists then RIAA members ever do. A lot serve as both manager and agent, booking concerts, promoting songs to other artists for use as covers (HFA royalties) and a host of other things that actually makes their cut almost worth it.

      --
      Sig (appended to the end of comments you post, 120 chars)
    12. Re:Killing the Goose that Laid the Golden Egg by MichaelSmith · · Score: 2, Interesting
      indie artists, 10c to apple, 90c to artist.

      Its the way of the future, except the bit about 10c to apple. Once major artists start coming out of contract they will start recording and distributing their own music. iTunes exists because of the deals Apple have done with recording companies. Web downloads are a pretty good distribution mechanism and other distributors will spring up.

      The recording companies know that this is the beginning of the end for them.

    13. Re:Killing the Goose that Laid the Golden Egg by shark72 · · Score: 1

      "I know it would be contrary to their agreements with Apple Records, but if the music execs do go ahead with this, I think Apple should start selling music directly from the musicians rather than going through the labels."

      iTunes already does this! Anybody can work with CDBaby. CDBaby takes only 9% of what they get from Apple, and gives the rest to the musican. The catch is, of course, that you must have the means to record, engineer and master your own tracks. Despite what folks say about Mac minis replacing million dollar studios, that's harder than it might sound.

      The real trick making your favorite artists want to eschew the label route for the do-it-yourself method.

      --
      Sitting in my day care, the art is decopainted.
    14. Re:Killing the Goose that Laid the Golden Egg by Niten · · Score: 1
      and personally, I think mainstream artists are mainstream for a reason

      That reason is often simply that someone in an RIAA member's marketing department decided to promote that particular band, seeing a potential new revenue stream but not necessarily talent. It's not that everything produced by RIAA member labels is bad. However, consider that the RIAA member companies are, naturally, focused on marketing and business margins; on the other hand, indie bands and indie labels are typically in business becuase, to at least some degree, they love music.

      It should be clear which of these scenes would tend to produce the more innovative and interesting music.

    15. Re:Killing the Goose that Laid the Golden Egg by oolon · · Score: 1

      I doubt many self published record labels have ISRC codes that Apple REQUIRES for listing on its service, ISRC codes allow for central collection of revenues (for airplay etc) by organisations like the RIAA.

      James

    16. Re:Killing the Goose that Laid the Golden Egg by Nasarius · · Score: 1
      but shit like "St. Anger" to me means the RIAA is about profits, not music.

      s/RIAA/Metallica/

      Of *course* the RIAA doesn't give a damn what they're selling, as long as it's doing well. It's somewhat disappointing when the artist feels the same way.

      --
      LOAD "SIG",8,1
    17. Re:Killing the Goose that Laid the Golden Egg by gtx · · Score: 1

      Actually, he makes a rather good point.

      Right now, the mainstream is defined by a pretty well calculated combination of record labels, media outlets, and record stores. That's because traditionally, the record labels were needed by the artists in order to get exposure, the major media outlets have been radio and television, and physical media were required to get quality copies of whatever was being sold.

      These days, however, the record labels aren't really needed to get the word out, the major media outlets for people are quickly being replaced by the internet, and record stores really just aren't necessary anymore.

      Apple has enough cash in their pocket that they could start pushing artists. That's just fact, and I wouldn't want to be the RIAA if Steve Jobs decided to do just that. Think about it. Apple could begin pushing new artists, winning over established ones, sell the tracks for cheaper than they're selling them for right now and still make a higher profit.

      You're right, mainstream music is mainstream for a reason, but not the one you're thinking. Mainstream music is mainstream because it gets mass exposure. You play the same song a thousand times to everybody in the country, you're bound to find a few people who like it, no matter how great or awful it is. Apple can arrange for mass exposure. If Apple decides that nearly everybody in the country is going to hear a song a billion times, they can make sure that happens, and they can probably do it really easy. Anybody can with that much cash on hand.

      The only advantage the RIAA has right now is its extensive catalog of music that it has exclusive rights to. The problem with that, however, that unless they make it available to the public in a matter the public finds acceptable, it's all just going to get copied and pirated until the RIAA loses that advantage. Since the RIAA keeps screwing the pooch with regards to how they're dealing with media distribution these days, they stand a damned good chance of losing that advantage eventually.

      --


      "I hope I don't make a mistake and manage to remain a virgin." - Britney Spears
    18. Re:Killing the Goose that Laid the Golden Egg by Scudsucker · · Score: 1

      It's probably just a bluff, but if the Music Industry does go through with this it would be incredibly stupid of them.

      Even more so because they just got busted for price fixing. If two labels make good on their threat, I don't know why Apple couldn't just sue them for price fixing again. Dunno why this hasn't been mentioned more.

    19. Re:Killing the Goose that Laid the Golden Egg by Anonymous Coward · · Score: 0

      I still say SJ should say fsck it and BUY Apple Records... How much cash does Apple have in the bank right now? I believe over 8 billion ...

      Seems like the next best move to me.

    20. Re:Killing the Goose that Laid the Golden Egg by jfengel · · Score: 1

      Why does Apple require ISRCs? If it's just a sop to the RIAA, Apple could abandon that requirement if the RIAA decides to break with Apple.

      Or is there some more arcane legal reason, to help keep Apple in the clear against copyright infringement somehow? iTunes-downloaded music aren't supposed to be used for airplay anyway.

    21. Re:Killing the Goose that Laid the Golden Egg by Godwin+O'Hitler · · Score: 1

      I'm trying to work out why so many posters are infatuated with this argument that Apple can't become a record distributor because of a legal wrangle with Apple Records.

      Apple have been very smart in the last 7 or 8 years. They've created an identity called "i". Apple wouldn't NEED to use the name Apple to sell records. People buy iPods, not Apples. The iPod mark has enough mindshare to make it a stand-alone name.

      All Apple has to do is create a label called iMusic, steer clear of mentioning the name Apple in their communications, and lo and behold: no more IP issues for Apple Records to get angry about.

      --
      No, your children are not the special ones. Nor are your pets.
    22. Re:Killing the Goose that Laid the Golden Egg by lost_n_confused · · Score: 1

      Isn't there a little law in America about a group of companies getting together to force someone out of business or artificially setting prices? I thought price fixing was a no no. Publicly anouncing that you and your buddies are going to get together and put Apple out of the music business sounds like prce fixing to me. But what do I know I barely RTFA.

      --
      -- To mess up an OS X box, you need to work at it; to mess up your Windows box, you just need to work on it.--
  17. If I were Jobs... by Stanistani · · Score: 2, Funny

    a nice move would be to call for price cuts - about 50% would be about right.

    Jobs should do this in front of Congress, if available.

    I'll bet he could disclose how little it costs to distribute the songs, and pose the musical question - "How Much Profit?"

  18. Deal with the devil..... by big-giant-head · · Score: 1

    I feel for Jobs and Apple, but he had to know when he got involved with these guys, he was making a deal with the devil.... Now the devil wants his soul, or in this case a large chunk of the profits from Apples' iPods.

    --

    So Long and Thanks for all the Fish.
    1. Re:Deal with the devil..... by ZenPirate · · Score: 3, Insightful

      I feel for the music industry, because they were stupid enough to challenge Jobs to a Mexican standoff.

    2. Re:Deal with the devil..... by KillShill · · Score: 1

      didn't apple make a "deal" with "intel" a while back?

      hmm...

      --
      Science : Proprietary , Knowledge : Open Source
    3. Re:Deal with the devil..... by big-giant-head · · Score: 1

      I'm an AMD fan, however, I think Intel is quite a bit more honest than the Music labels.

      --

      So Long and Thanks for all the Fish.
  19. In other news... by Stickerboy · · Score: 4, Funny

    Ford and GM announced today that unless Exxon and Shell start sharing gasoline revenues, future SUVs will run on ethanol.

    --
    Light a fire for a man and he'll be warm for a day. Light a man on fire and he'll be warm for the rest of his life.
    1. Re:In other news... by metternich · · Score: 4, Insightful

      Cute, but a more accurate analogy would be, "Exxon and Shell announced that unless Ford and GM gave them a share of SUV revenues they'd stop selling Gas to SUV owners."

      --
      Facts do not cease to exist because they are ignored.
    2. Re:In other news... by Shoggoth+of+Maul · · Score: 1

      I think they're trying to prove Darwin wrong.

      Yeah. Pull the plug on iTunes, and what's left? Hmm? A lot of disgruntled customers who'll go back to stealing your music instead of paying for it, that's what. And that's if they're NOT new customers who will now TURN TO illegal downloading to get their fix. Yes Napoleon, I hear Russia's lovely this time of year....

      The same thing happens in miniature when you start raising your prices.

      The whole strength of online music stores is that it makes the music accessible. It's worked like a charm; people (myself included) now take great pains not to get out of reach of their iPods. What happens when you remove the accessibility of music through the Internet by raising prices or stopping your service, leaving only the illegal (but convenient) method of downloading from a P2P network?

      I'll leave that as a exercise for the class _

    3. Re:In other news... by Anonymous Coward · · Score: 0

      Various pickup trucks, SUVs and now sedans have been capable of running on ethanol since 2002.

      Ford Vehicles http://www.e85fuel.com/information/ford.php

      GM Vehicles http://www.e85fuel.com/information/general_motors. php

      Complete listing http://www.e85fuel.com/e85101/flexfuelvehicles.php

    4. Re:In other news... by LarchOye · · Score: 1

      Unless Ford, GM, Exxon, and Shell move 100% to Hydrogen powered vehicles- I'm going to bring a class-action lawsuit against them claiming that the smog they produce gave me cancer.. Or something like that...

    5. Re:In other news... by Biolermaker · · Score: 1

      Ethanol is gas and all cars with unleaded engines can run on it.

  20. do the math by P3NIS_CLEAVER · · Score: 0

    12 songs, with album cover art and liner art, about 15$. A little more than a dollar a song.

    1 song, no art or media, a dollar a song. Sounds fair to me.

    --
    Please sign petition to restore sanity to our banking system!!!

    http://financialpetition.org/
    1. re: do the math by Spy+der+Mann · · Score: 1

      12 songs, with album cover art and liner art, about 15$.
      1 song, no art or media, a dollar a song.


      Seeing how the RIAA get mad and cry like children: PRICELESS.

  21. Price fixing? by vena · · Score: 2, Insightful

    now, IANAL, but isn't attempting to force pricing schemes on the retail end illegal? aren't they only allowed to change their wholesale price to the retailer?

    1. Re:Price fixing? by rainman_bc · · Score: 2, Interesting

      now, IANAL, but isn't attempting to force pricing schemes on the retail end illegal?

      Nope, it happens all the time, at least in Canada. I recently bought some 33" Goodyear MT/R tires for my Jeep. Vendor couldn't publicly quote a price for them in writing because he'd lose his license to sell goodyear tires.

      While I agree it's anti-competitive, it happens in industry all the time.

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
    2. Re:Price fixing? by n8_f · · Score: 1

      That is very different from Goodyear, Firestone, Michelin, and all the other tire companies getting together and setting prices, which is what the music industry seems on the edge of doing. Your example is simply MSRPs enforced by MAP agreements. The key point is that it is one manufacturer in an industry, not the entire industry.

    3. Re:Price fixing? by vena · · Score: 2, Informative

      well in america the states have already sued them once for doing this with CDs. august, 2000. the labels settled for $67.4 million. link.

    4. Re:Price fixing? by rainman_bc · · Score: 1

      And in this story it was one music industry exec, not the entire industry no?

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
  22. Apple is in a losing position here by Nuttles1 · · Score: 0

    Obviously the music industry is not very interested in changing their music pricing system. Look at there handling of the music distribution system! The music industry is fighting to keep their revenues at the same rate as their golden years. For apple this means they have to bow down to the music industry. The music industry will not back down. Given that Ipods and selling music is a big thing for apple they will bend over and take it from the music industry. Right or wrong, that is the way it will probably go. Apple needs to create a new innovative product anyways. That is their strength. The should ride out the ride of the Ipod and Itunes as long as possible, but have the next cash cow ready by the time the party is over for Ipod/itunes.

    1. Re:Apple is in a losing position here by crabpeople · · Score: 1

      "Given that Ipods and selling music is a big thing for apple they will bend over and take it from the music industry."

      im proud to say that i have not one legally downloaded song on my ipod.

      itunes didnt make me buy an ipod, i already have a ton of music. i however, did not have all that music in my car. thanks ipod!

      --
      I'll just use my special getting high powers one more time...
    2. Re:Apple is in a losing position here by Anonymous Coward · · Score: 0
      Oh no! If we're no longer able to buy music from the iTMS we'll have to revert to doing what we did back in ancient times, before the iTMS...


      Rip CDs and pirate music. How horrible.

  23. 99 cents is already too much by Brandon+K · · Score: 1, Interesting

    Especially when I can get it in a much friendlier format for free.

    Now, I'm not trying to advocate piracy of any sorts in this post. But EVERYBODY knows about the popular P2P networks. If you raise the prices, more people will stop buying.

    It is like the classic supply and demand scenario, but there isn't much demand, and the guy next door is handing out stuff for free.

  24. 'bout normal by Nf1nk · · Score: 5, Insightful

    The recording industry never saw a cash cow they didn't want to kill.

    --
    I used to have a cool sig, back when I cared
    1. Re:'bout normal by clem · · Score: 3, Funny

      Mmmmm...cash cow burgers.

      --
      Your courageous and selfless spelling corrections have made me a better person.
    2. Re:'bout normal by ucblockhead · · Score: 3, Interesting

      Oh, they have a reason. Yeah, it's a cash cow now. But imagine ten or twenty years from now. An Apple that has 50% of the music market is an Apple that holds the labels by the balls. More importantly, it is an Apple that no longer needs the labels.

      If Apple gets a big enough market, it can start selling artists directly. That is what the labels are really worried about. All the rest is just rhetoric.

      --
      The cake is a pie
  25. Apple Frickers! by AlysseumWarrior · · Score: 0

    I say let them pull the plug, let his lable get less exposure. How can iTunes be giving less money to the music industry than Napster or the other monthly paying services. Im sure i f you average their sales out it is less than a dollar a song. If the music execs want a piece of the iPod market, tell them to go make their own iPod and sell it.

  26. classic example by MORTAR_COMBAT! · · Score: 4, Interesting

    of giant businesses who seem to have no idea just how good they've got it.

    this is 2005.

    the fact that people are still paying for downloads at all (including me, I have well over 200 iTunes songs) in 2005, YEARS after Napster started the easy-as-pie method of music aquisition... do the music companies really want to go ahead with this? do they want to return to the days of talking about free tunes on Napster instead of paying for iTunes?

    --
    MORTAR COMBAT!
    1. Re:classic example by Phil246 · · Score: 1

      I agree. Pushing the issue will just force people back onto p2p networks, and with the RIAA/MPAA crusade to have them shut down - its only going to spawn the next-generation of p2p networks sooner.

      Any bets on what the 'pinnacle' of p2p networks will resemble?
      Some form of automated ms-blaster type propegation method, combined with rootkit functionality ( to make it bloody hard to remove ) - forcing an always-on , highly encrypted, distributed tracking + data network a-la-freenet with a "Get Songs" link on every windows explorer window , or similar is my bet.

      after all, if the average user is clueless enough to let their computer get infected with spyware, they sure as hell wont know how to remove a rootkit.

      Geeks are probably the last usergroup on the internet you want to piss off.

  27. Could be the best thing to happen to Music by NatteringNabob · · Score: 5, Interesting

    I'd love to see Jobs tell the RIAA members to go screw themselves and open up iTunes as a 'label' for independent artists most of whom would probably be happy to take a much smaller cut then the leaches at the labels do. Talented muscians don't need multi-million dollar marketing campaigns to be successful, they just need an audience. And iTunes could deliver that audience much more efficiently than Warner or Sony/Columbia ever could.

    1. Re:Could be the best thing to happen to Music by popejeremy · · Score: 1

      That wouldn't be a bad idea from Apple's point of view, but they would almost surely have to change their name in order to do that. The last time they got sued by Apple the record company for trademark violation, which happened about every other year for a while, the ruling was that there was a sufficient lack of ambiguity between Apple the computer company and Apple the record company as long as Apple the computer company doesn't try to sell music. I've been waiting for the other shoe to drop ever since Apple the computer company opened up the iTunes music store.

      Personally, I think they should just save themselves a huge headache and change the name of the company to Macintosh once and for all and be done with it. Most people call the computers "Macs" anyway.

      I also happen to think think that it could work out famously for me personally if Apple the computer company did this, since I happen to be one of those small artists (which is really just a nice way to say unpopular artists) who is signed to a small label and who also occasionally recieves a check directly from Apple the computer company for songs sold on our page of the iTunes music store.

    2. Re:Could be the best thing to happen to Music by mkro · · Score: 1

      The whole "Apple" record company problem can go away by establishing a company called iTunes. The name is already established -- no brand building needed. And the quality of lot of the indie music out there more than matches the quality of the BMG/Sony/Warner/EMI/Universal -- the only thing making the RIAA artists "more valuable" is the marketing of those who has potential hits -- and that job iTunes can take over. Oh, what glory it would be.

      --
      I shall go and tell the indestructible man that someone plans to murder him.
    3. Re:Could be the best thing to happen to Music by Anonymous Coward · · Score: 0

      Wow. If Apple became a music label that would open up a nice legal can of worms with the whole Apple Records/Apple Computer trademark lawsuit. Does anyone know if Apple Records still exists?

    4. Re:Could be the best thing to happen to Music by Anonymous Coward · · Score: 0

      Or...

      The RIAA can go to Microsoft, who will gladly charge $1.49, $1.99, or even $2.99 for the music. Yet again, Microsoft will beat Apple at it's own game, because Apple wouldn't budge. (Even if they aren't budging to benefit customers.. at least iPod customers.)

    5. Re:Could be the best thing to happen to Music by farble1670 · · Score: 1
      does anyone have anything more than speculation on how viable this would be? i would tend to think that a large % of an artist's revenue is still based on CD sales. if that is true, then you will NEVER get them to sign with itunes. sorry, but artists are humans also, and they aren't going to throw away 90% of their incomes for some philosophical battle over the cost of digital downloads.

      and btw, jobs will never do this either. he answers to apple's stockholders. stockholders, like the artist, also do not care about philosophical battles. they care about the price of the stock. even in this was a success for apple in the long-long-term, in the short term it would really kill them.

    6. Re:Could be the best thing to happen to Music by Anonymous Coward · · Score: 0

      Actually, artists make most of their money off of touring and radio plays...

    7. Re:Could be the best thing to happen to Music by pharwell · · Score: 1

      Does anyone know if Apple Records still exists?

      Sure does. Look at your Beatles CD's. The Beatles started the label, so as long as they're still around, Apple Recs will be.

      --
      I quote others only in order the better to express myself. -- Michel de Montaigne
    8. Re:Could be the best thing to happen to Music by Myopic · · Score: 1

      most people learn about new music by radio. apple does not control the radio. the best apple could do is plant a seed of online music discovery yand enjoyment, and hope it grows into a profitable market in the future.

    9. Re:Could be the best thing to happen to Music by jafac · · Score: 1

      Well, then there's the sticky problem of how they're going to record and produce the music.

      They could always buy Apple Records though. Kill two birds (The lawsuit, and the RIAA) with one stone. . .

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    10. Re:Could be the best thing to happen to Music by kamapuaa · · Score: 1
      They already have independent music labels, none of which are wildly profitable. Why would Apple want to enter this business? Anyway, Apple will continue to distribute music for indie labels, so why couldn't the artists just sign on with an existing indie label???

      There's a disconnect - people talk bad about the RIAA all day, and complain about their price schemes. But there already are a number of alternatives, only almost nobody actually listens to these alternatives. Obviously RIAA is doing *something* right.

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
  28. Price-fixing lawsuit? by crimethinker · · Score: 3, Informative
    Did I read the record execs comments correctly? They want to artificially inflate the price of some songs? Gee, I wonder if their bravado has anything to do with the fact that they made a hella lot more money on price-fixing CD's than they had to pay in penalties when they were finally busted.

    Or maybe they need the money; for all I know, the price of snorting coke off a stripper's breasts has gone up dramatically in the last year or so.

    -paul

    --
    Pistol caliber is like religion: everyone has their favourite, and theirs is the only right choice.
    1. Re:Price-fixing lawsuit? by Infinityis · · Score: 1

      Last time the furniture stripper came by, he spilled a Coke on his shirt, but I just let him use a towel to dry it off. I've never tried to snort it off, but it seems like the carbonation might tickle my nose a bit...

    2. Re:Price-fixing lawsuit? by rsax · · Score: 1
      Or maybe they need the money; for all I know, the price of snorting coke off a stripper's breasts has gone up dramatically in the last year or so.

      It definitely isn't low enough - I'll tell you that much.

    3. Re:Price-fixing lawsuit? by Deadguy2322 · · Score: 0

      I know how you feel. I have had to resort to snorting RC Cola off a slut's chest. Damn this economy!

      --
      Check out my foes list to see who is so retarded that they can't use the signature line!!!
  29. What is the motive? by pmike_bauer · · Score: 1

    Did I miss something? What is the motive for all this greediness? Are the record labels losing money? Are they about to go out of business?
    If they keep up this behavior, its only a matter of time before Apple starts dealing with the artists directly. Why not?

    --
    I read /. for the (Score:-1, Conservative) comments.
  30. Re:knob by Anonymous Coward · · Score: 0, Funny
    steve jobs more like steve knobs


    Oh man. I hope you've printed that comment out at least 20 times and deposited each copy in the bank vaults of the world's 20 richest Sultans, Sheikhs and casino owners for safe keeping.

    Because, should the unspeakable happen, and Slashdot's comment database (and all backups) be destroyed, the loss of such comedic gold would be a true tragedy for all mankind.

    I salute you, Sir!
  31. But what if... by kweg · · Score: 3, Insightful

    Buy what if i own a company that made most of the clothes that are washed in Maytag washing machines I should get a bit of the profit then...
    Right?...

    1. Re:But what if... by Anonymous Coward · · Score: 0

      Wrong.

      That is, I don't see why that should be the case. Perhaps I'm missing your point?

    2. Re:But what if... by rollingcalf · · Score: 1

      You should get a bit of the profit ... from the clothes you sell.

      --
      ---------
      There is inferior bacteria on the interior of your posterior.
  32. Go Apple by sheared · · Score: 1

    Although they will likely cave in eventually, it would be fun to see Apple resist, and somehow pull out a victory in the end.

  33. Re:The music industry is stupid enough to do this. by SoCalChris · · Score: 2, Insightful

    I don't see them closing iTunes Music Store. If all of the labels backed out, Apple would probably start focusing on indie bands, and put more focus on the podcasts. I can see them allowing indie bands to set their own pricing on their songs, and providing for "premium podcasts" that require either a subscription, or purchase of individual podcasts. In fact, I wouldn't be terribly surprised if they start doing that anyways.

  34. Okay.... by LWATCDR · · Score: 2, Interesting

    1. Apple needs to make a deal with Apple Records to free themselves from any restrictions.
    2. Apple starts a "record" company.
    3. Apple doesn't screw artists and big names flock to them.
    4. Apple uses "pod casts" to replace radio air play to promote new artists.
    5. Apple cuts out the middle man so artists and Apple now split the profit so each side makes more money.

    It is the end of the world as Warner and Sony knows it... And we all feel fine.

    --
    See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    1. Re:Okay.... by trybywrench · · Score: 4, Interesting

      1. Apple needs to make a deal with Apple Records to free themselves from any restrictions.
      2. Apple starts a "record" company.
      3. Apple doesn't screw artists and big names flock to them.
      4. Apple uses "pod casts" to replace radio air play to promote new artists.
      5. Apple cuts out the middle man so artists and Apple now split the profit so each side makes more money.

      It is the end of the world as Warner and Sony knows it... And we all feel fine.


      This would be such a dream come true for many people and for so many reasons. Imagine an independent (non-RIAA) label with the distrubution clout and exposure of one the majors. It would revolutionize the "biz".

      --
      I came to the datacenter drunk with a fake ID, don't you want to be just like me?
    2. Re:Okay.... by Dalroth · · Score: 1

      I hate to say this, but in your scenario Apple doesn't cut out the middle man, they become the middle man. That's not to say it won't be better than it was before, but it's hardly a panacea.

      Bryan

    3. Re:Okay.... by HardCase · · Score: 1

      The only hitch in the plan is that AAPL, as a non-media company, has revenues of around US$10 billion a year and TWX, a media company, has revenues of over US$40 billion a year. SNE is a 70 billion dollar company. Now, I'm not saying that it can't be done, but AAPL isn't in the media business, ITMS aside. And if you're a relatively small company in comparison to the guys that you might be trying to take out, particularly if you're engaging in a business market with which you have virtually no penetration, it will probably be bloody.

      How much of AAPL's revenue are they going to devote to creating a music label? Would it be at the expense of some other product? Would they be willing to commit enough money to the music label to potentially have a few losing quarters? I think that it would just be a big nightmare for AAPL.

      Me? I've never used iTunes. I've got Anapod and I rip my own music. But my wife uses iTunes and ITMS, so I suppose that she'd be all upset.

    4. Re:Okay.... by aaarrrgggh · · Score: 1

      The thing is that the marketing can easily pay for itself with iTunes. Bands have an incentive to focus on the marketing, and what Apple does is limited to web pages and maybe podcasts.

      The other barrier that apple breaks down is the cost to produce with their software.

      It could be a real synergy, and if I were a record exec I would be scared!

    5. Re:Okay.... by javaxman · · Score: 1
      1. Apple needs to make a deal with Apple Records to free themselves from any restrictions.

      Convince Yoko Ono and you're done.

      Good luck with that. I'm just guessing, but we're looking at a battle of wills ( aka a battle of egos ) between Ono and Jobs. Don't hold your breath.

    6. Re:Okay.... by Alsee · · Score: 1

      6. Apple starts selling the product people actually want.... MP3s!

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    7. Re:Okay.... by Anonymous Coward · · Score: 0

      I say Apple uses some of its cash and *buys* Apple Records...

      Just my $0.02

  35. At the risk of sounding obvious ... by Anonymous Coward · · Score: 0

    The execs would have been right had the iPod been a total flop when it was released (prior to all of the digital download services), and then magically transformed into a goldmine as soon as the iTunes Music Store opened.

    Obviously that's not the case. While I'm not 100% against a more structured pricing scheme, I do think it takes away from the simplicity offered by iTMS. Doing this will probably just push a lot of people back to P2P for their music needs.

  36. Unbelievable... by kurt_ram · · Score: 0

    Oh my God. The Music Industry is even more evil than I had thought. Atleast now, they are fighting with a giant who can fight back. I have never been a fan of Apple. But this has given me a new respect for Apple and Steve.

    --
    Clearly, Google is the next Microsoft.
  37. Don't dream by imr · · Score: 2, Informative

    There was a fight years ago between TV channels and Record compagnies about Videos.
    The TVs didnt want to pay because they were doing free advertisements for the records, the Record companies wanted money because the TVs were doing money showing the videos.
    And yes the sales of records were going up thanks to the music videos. Well, TV channels had to pay anyway. End of the story.
    As long as you give money to pay the records or whatever is coming from those record companies, they are controling the market, they are controlling the music, they are controlling the medias.

    Give your money to alternative music channels that respect your rights and the music and the artists.

    1. Re:Don't dream by MooseTick · · Score: 1

      "Well, TV channels had to pay anyway."

      Perhaps this is why MTV rarely plays videos now. It may be cheaper to produce their own content than to play videos that they have to pay for. You would think some record companies would let MTV play their tunes for free. It definately boosts sales.

  38. Yay Apple... Boo RIAA by Xepherys2 · · Score: 1

    I believe that 99 cents per song is just about right, since I can pick and choose the songs I want, without paying for the fluff of filler music I don't care for. I'm not a huge Apple customer, but I've always been a fan of what they do. They have always tended to pay more attention to their customers than to their industry partners, and my hat's off to them for that. I'm also impressed with their initial strong stance against changing pricing policies. I hope that Apple continues to move technology forward, even in the fact of the recording industry and their constant attempts to drive technology backwards and fair use into the ground entirely. Huzzah for Apple!

  39. Oil Company demading share of SUV sales by sxmjmae · · Score: 0, Redundant

    It is like Oil Company's demanding a share of all gas powered vehicles.
    As with out gas the vehicles would not run.

    The same linkage between music sales and ipods can be made for vehicles and gas.

    Maybe the record company needs to be hit with a racketeering charge or two before they smarten up. After all they are acting like a criminal organization.

    --
    My Sig indicates the end of the comment I posted.
  40. I'm taking my ball and going home! by saucercrab · · Score: 1

    What Michael Nash said: "What if Jobs says 39 cents or 29 cents per download - what then? The industry can say, 'OK we'll cut him off - very few people buy music from digital downloads.'" What we heard: "DAAAAAAAD! *sniff!* Steve isn't sharing enough! *sniff!* I want you to make him share or take away his toys!"

  41. The arrogance is sickening by chia_monkey · · Score: 0, Flamebait

    The arrogance of the music industry is just plain sickening. I'm coming at it from so many different angles. I've got loads of friends in bands, technology, law, and business. The labels will rape the poor artists blind if they don't have a good lawyer. The fact the artist barely sees any money from a CD sale is sad. Then you've got the RIAA who is still stuck in the Bronze Age, dragging their clubs around thinking they can do business now as they have in the past. If they don't see what they like, they sue instead of changing their business practices.

    I almost want the labels to pull out. I want their arrogant plan to blow up in their face as they watch iPod owners burn the CDs they already own and purchase less music online. You know piracy will go up again and the labels will see 0% profit as opposed to the hundreds of thousands they've made BECAUSE of Apple and iPod sales. As Red from "That 70's Show" so eloquently states..."dumbasses".

    --

    "He uses statistics as a drunken man uses lampposts...for support rather than illumination." - Andrew Lang
  42. Not enough quotes in TFA by aarku · · Score: 1
    A Warner Music executive has threatened to cut off Apple if Steve Jobs continues to refuse to give ground on iTunes Music Store pricing.

    Okay, what did he actually say and in what context? This reeks of sensationalist journalism. Of course, I'm sure I'll be modded down for not going along and saying "WTF EVIL RIAA!!" along with the rest.
  43. Buy teh music companies by the_2nd_coming · · Score: 4, Interesting

    That is wht the Tech big wigs need to do. Google should buy one, yahoo, MS and Apple.

    I watched a business show about this and tehy said that each of those companies market caps are large enough to buy one company each. then all you need to do is make the tech companies share the catalouges amoungst each other.

    Tech companies that are trying to sell their technology will have a friendler stance about copyright and the consumer than the record companies would.

    --



    I am the Alpha and the Omega-3
    1. Re:Buy teh music companies by plasmacutter · · Score: 1

      Not a bad idea at all.. i wish i had some mod points for ya. I want to know where the corporate raiders of yesteryear are.. there are 4 inefficient and undervalued baheamoths just sitting there ripe for takeover!

      --
      VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
    2. Re:Buy teh music companies by mrchaotica · · Score: 1
      Tech companies that are trying to sell their technology will have a friendler stance about copyright and the consumer than the record companies would.
      Yeah, right. Of course even more consolidation will make things better, and of course Microsoft will have a friendlier stance about copyright.

      Hold on, what's that I see out my window? A pig flying by?!
      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    3. Re:Buy teh music companies by The+Amazing+Fish+Boy · · Score: 4, Funny

      That is wht the Tech big wigs need to do. Google should buy one, yahoo, MS and Apple...

      Yeah, that's a great idea! But since there's a fifth big record company, we'll need a fifth big technology company to buy another. Let's see... how about.. yeah! Sony! Since they're a technology company, they'll want to avoid nasty things like DRM and price fixing. I can see it now...

    4. Re:Buy teh music companies by Castar · · Score: 2, Funny

      Tech companies that are trying to sell their technology will have a friendler stance about copyright and the consumer than the record companies would.

      Yeah, like Sony! They're a tech company. They should buy a record label, maybe some movie studios.... I bet they'd release all their stuff under CC licenses! It would be great!

      --
      I yearn for you tragically. A. T. Tappman, Chaplain, U.S. Army.
    5. Re:Buy teh music companies by brazenmisfit · · Score: 1

      screw sony, i nominate IBM to buy the fifth

  44. Idiots by ToasterofDOOM · · Score: 1

    This will only be the music execs(tm)(R)(C)(asdfghjkl;)(OMG-DMCA-WTFLOLBBQ) shooting themselves in the foot. Oh yeah, I almost forgot, they probably think they hava a patent on music too, best not to risk a lawsuit.
    Patent Pending, no. fiftybajillion

    --
    I am Spartacus
  45. Apple should empower their users politically by Safe+Sex+Goddess · · Score: 2, Insightful
    The only way to fight lobbyists with money is by organizing voters who have none. It seems to me that Apple could lead the charge in organizing mp3 listeners to turn copyright law back from the draconian direction the music industry has been forcing it down.

    One first step would be to make it illegal for anyone to receive financial renumeration for lobbying a congress critter. Why should a group or individual with money be able to hire someone to go lobby when we working stiffs have to juggle career, family, and fun with any political activities that can be fit in?

    Let's level the playing field and return government back to the citizens instead of the highest bidder.

    So what about it Apple?

    --
    Abstinence is a government conspiracy. www.SafeSexZone.co
  46. Would that be legal? by Fizzlewhiff · · Score: 1

    I hope Apple doesn't budge as I would like to see how this plays out. I think it would do nothing but make the music industry look like bigger scumbags than they already are. Plus Apple is already working with indy artist to get their stuff in iTunes. I am sure that pisses off the labels too.

    --

    'Same speed C but faster'
  47. Correction by Keith+Russell · · Score: 1

    The PCPro article is apparently* citing an article on The Register that was later corrected. The Register's correction is here: http://www.theregister.co.uk/2005/09/29/warner_mus ic_sorry/

    These remarks were made by another panelist, Kenneth Hertz, partner at Goldring Hertz and Lichtenstein LLP, a law firm representing major recording industry artists.

    *: I say apparently because after viewing it once, I got a registration page, and it's too late on a Friday to bother with BugMeNot.

    --
    This sig intentionally left blank.
  48. bitter pill by HeetMyser · · Score: 1

    This has all got to be pretty disillusioning for Steve, such a child of the 70s and an avid music freak. I keep wondering when the big backlash against the music industry is going to happen. Does anyone else get the feeling that they just keep pushing and pushing only to see how far they can go before the consumer says, "oh, screw this." I would LOVE to pay money directly to an artist I like for the music he or she produces. Buying CDs now just makes me feel dirty.

  49. I only buy from iTunes by t'mbert · · Score: 2, Interesting

    I quit buying cd's when the ipod came out. I'm on windows, so I had to wait a while with no cd purchases until the PC ipod units came out. Now I buy music online all the time.

    So yes, ipod sales drive online music sales. The prices aren't out of line either, especially for whole albums, which is what I tend to buy.

    What miffs me are albums that are only partially available. Why do they do this when they also have the option of making the song available on the album only? I don't get it.

    Also, doesn't this mean that as a song rises in popularity, it gets more expensive? That's kinda what they want, right, so wouldn't that drive demand down? Economics 101, HELLO!

  50. It is all posturing... by $nickname_212 · · Score: 0

    in order to broker an agreement later on. Apple needs to make the case the iPods help sell music, and the music industry needs to insist that they are more than promotional material to sell iPods. In a sense, this conflict is a no brainer. Apple will eventually sell music at variable pricing, but they probably want to set the terms and get more profit in turn. In addition, with the music labels demanding variable pricing, Apple can deflect the criticism that it isn't them that are being greedy; the music industry is the boogie man and they are already the boogie man so might as well let them hold the mantle. But I don't expect Apple to give up the iTunes Music Store because it has brand recognition and business value probably way into the future as a content deliverer. They are also not going to cut off there nose to spite their face; in other words, they are not going to get rid of a revenue stream they control. Revenue is the life blood of any company and this is one that has developed quite successfully. So, why take a position that might threaten the loss of this lifeblood? Only to be able to come to the table and broker a sweet deal; it is part bluff, part truth.

  51. Who has the power? by waterlogged · · Score: 1

    This is just my opinion.

    If I were Jobs, I would call their bluff. I would find the most offending label and preempt them. I'd cut them off completely. As a double entente I would also call for all Ipod users to boycott any music from said label for the span of one month. Typically in history, the only thing that gets results in any battle is when you hit them in the pocket book. Similar tactics helped in the Cold War, the Civil Rights movement, and the ERA. Its all words and gesturing usually, but the real results come from the almighty dollar and its influence.

    End Opinion

    --
    I couldn't fail to disagree with you any less.
  52. In other news by Alizarin+Erythrosin · · Score: 1

    Recording Industry execs prove their own stupidity! I mean, threaten the biggest online music store over pulling your music? Don't want that extra revenue stream, eh? If you say so...

    I'm sure Mr. Jobs will respond with something resembling laughter, or perhaps a "Sure, go ahead, see if we care." At least they'll look like the bad guys.

    --
    There are only 10 kinds of people in this world... those who understand binary and those who don't
  53. ~sigh~ by Anonymous Coward · · Score: 0

    The utter and total hypocrisy of the record and movie companies is getting so far out of hand there aren't even words for it. These past two attempts to extort money (extort |ik?stôrt| verb obtain (something) by force, threats, or other unfair means) from Apple are undoubtedly some of the most inane that I've read in a while. I for one hope that more people begin voting with their wallets and stop supporting the money grubbing assholes at the major labels.

  54. Logic: by SamAdam3d · · Score: 1

    1. Help build largest music store.
    2. Make lots of money selling music in store.
    3. Argue with owner of store.
    4. Leave store. ...
    5. Profit!!!

    --
    I love deadlines. I like the whooshing sound they make as they fly by. - Douglas Adams
  55. I was just saying... by lasmith05 · · Score: 1

    last week, what was to really stop the RIAA from changing the terms of the deal when their contract is renewed. They own the content, so they can most likely make the rules. Its a valiant effort on Apple's part to try and keep music cheap, but in the end I think Jobs will have to fold and charge more.

    --
    www.samuraidreams.com - My Blog
    www.samuraifiles.com - Get Some Videos Here
  56. Anybody know the music industry? by FreshFunk510 · · Score: 1

    I'm curious on how binding contracts are between artists and labels. I wonder if artists are able to simply go directly to iTunes instead of the big 3 music distributors to get their music out. Of course the downside of that would be that their distribution would be primarily digital and they wouldn't get all the marketing and leverage of a big distribution company.

    --


    "Injustice anywhere is a threat to justice everywhere." - Martin Luther King, Jr.
    1. Re:Anybody know the music industry? by cmowire · · Score: 1

      iTunes releases are probably in the same set of rights as a record release, so no. If an artist wants to jump ship, they need to wait until their record contract is up. The backcatalog will still be locked up in the old label.

      It could be an inflection point for music if the industry follows through on their threats, however. Consider that right now, Apple cannot be too actively antagonistic towards the industry. There's nothing preventing them from drawing from Apple's pile of cash (smaller than Microsoft's, but still respectable) and building the infrastructure to offer the marketing and leverage of a big record label for indie iTunes artists, except that Apple doesn't want to push the record industry away too much.

    2. Re:Anybody know the music industry? by MightyMartian · · Score: 1

      Record companies have had decades of practice at binding contracts that still allow them to dump artists. I doubt very many but the biggest recording artists would be able to move to other labels, and I'm sure there are nasty default clauses that would make even Bono go "maybe not". The other side is that would iTunes be able to offer the big bands what they wanted; big advances, loans for making records and touring, huge marketing campaigns and the like? It's one thing to strike up a deal to use their brand name to sell iPods, but another to jump ship to a new label.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    3. Re:Anybody know the music industry? by FreshFunk510 · · Score: 1

      Yeah. Unfortunately iTunes is only digital distribution and considering how much profit is made from CD sales it's probably not much of a good idea. :\

      --


      "Injustice anywhere is a threat to justice everywhere." - Martin Luther King, Jr.
  57. Slashdot EeziPost (TM) MK I.rc2 by Anonymous Coward · · Score: 1, Funny

    [X] Another: [ ] Dupe [X] Apple iTunes Article [X] WTF [ ] $editor is a dork

    [ ] Frist psot [ ] link to GNAA [ ] Link to goatse [ ] $random_drivel

    [X] I Haven't RTFA, but... $random_opinionated_comment

    [ ] Slashdotted already!. I bet their server runs on $topic_item too

    [ ] Soul_sucking registration required

    [ ] Mod Parent [ ] up [ ] Down

    [X] Fsck: [ ] SCO [ ] Micro$oft [ ] DMCA [ ] DRM [ ] MPAA [X] RIAA [ ] Google [ ] Bush [ ] You all

    [ ] I for one welcome our new $topic_item overlords

    [ ] Imagine a beowulf cluster of those

    [ ] In Soviet Russia, $topic_item owns you!

    [ ] Meh!

    [ ] Netcraft confirms $topic_item is: [ ] dead [ ] dying

    [ ] But have the inventors thought of what will happen if $random_amateur_insight

    [ ] Once again the USA is clamping down on my [ ] Amendment rights.

    [ ] You insensitive clod

    [X] But people who download music from P2P networks are more likely to buy the album

    [ ] Cue DVD Jon-type crack in 3..2..1

    [ ] Torrent, anyone?

  58. Re:The music industry is stupid enough to do this. by Hellasboy · · Score: 4, Interesting

    wasn't it in japan a few months ago where sony artists were tired of the bickering between sony and apple in regards to itunes that they just said kcuf it and started releasing their songs on itunes in spite of their contracts?

    maybe the same thing can happen here with artists backlashing against the riaa (who are supposed to represent the artists themselves but seems more likely they are representing the executives). but i guess that would depend on the character of the band.

    --

    "Tread softly because you tread on my dreams"
  59. In fairness... by Blondie-Wan · · Score: 2, Informative
    The record companies' position is based on the dubious argument that digital downloads sell iPods. In fact all the evidence points to the opposite: that iPod sales have driven demand for downloads. The vast majority of digital music sales are made by iPod owners.


    Not to give the labels too much credit (they certainly give themselves more than enough), but in fairness, I think they do have a bit of a point with this. iPod sales did rise dramatically after the introduction of the iTunes Music Store to levels well above what they'd been immediately before (and they've been going up ever since). That said, it may also have something to do with the boost to the iPod's Windows-friendliness around the same time (the 3rd gen iPods, which introduced dual-platform support in a single box and the ability to use USB as well as FireWire), or simply market awareness and the "fashion" factor building to a head.

    In other words, I don't think we (those of us outside the industry, without access to their market research) truly know to what extent iPod sales are driving iTMS sales and to what extent iTMS sales are driving iPod sales, and I think a decent case could be argued in either direction.

    That said, the music industry's apparent sense of entitlement to a piece of Apple's iPod revenue, and its threat to pull out of a store offering their product in a medium that both offers them some control over how consumers use it and reduces the costs associated with manufacturing, shipping, storing, etc. physical goods to virtually nothing, are pretty damn ludicrous. They ought to be on their knees thanking Apple for finding a way for them to generate earnings while dramatically reducing their costs; instead they're demanding more slop in the trough. I'd dearly love to see them pull out and then watch their earnings disappear as consumers finally decide they've had enough of this shit and spend their music money on alternative content providers, but I know better than to expect that.

    1. Re:In fairness... by Monkelectric · · Score: 1
      I think they do have a bit of a point with this. iPod sales did rise dramatically after the introduction of the iTunes Music

      Listen to yourself :) If I own a doughnut store, and sell milk there. Are the dairies entitled to a cut of my doughnut sales? Of course not. Just because this happens online does not excuse anyone from rational thougt.

      --

      Religion is a gateway psychosis. -- Dave Foley

    2. Re:In fairness... by Blondie-Wan · · Score: 1
      Erm, you [i]did[/i] read my post, didn't you? I thought I made it abundantly clear I don't think the record industry is entitled to a cut of Apple's iPod profits, any more than it's entitled to sales profits from CD players, DVD players, speakers, amps, radios, CD storage cases, etc. or anything else whose own sales benefit from music sales (just as I don't think Apple deserves a cut of every iPod case, for example, and wouldn't advocate that they do).

      All I said was addressing the Slashdot article's claim that iPod sales are likely driving music sales, as opposed to the music industry's claim it's the other way around. Regardless of which entity's sales are getting more of a piggyback ride from the other, I don't think either is entitled to a slice of the other's profits; that's what they have their own prices for.

  60. The RIAA has a point. by dada21 · · Score: 5, Interesting

    iTMS is destroying the RIAA's right to speech:

    1. The RIAA can't pat iTMS DJs and Producers to force users to download the hot song of the week.

    2. The RIAA can't pay iTMS to list the proper version of the Top 40 Charts.

    3. The RIAA can't control which markets get their music, heaven forbid a black consumer getting a listen to Kenny G by accident.

    [/kidding]

    1. Re:The RIAA has a point. by Anonymous Coward · · Score: 0

      You forgot 4. The RIAA can't fix the price THEMSELVES. I can't believe they're being so public about their lack of ability to FIX THE PRICE OF MUSIC. You'd figure after they'd been found guilty of price fixing they'd be a little bit careful complaining about a someone charging a lower price!

    2. Re:The RIAA has a point. by Anonymous Coward · · Score: 0

      3. The RIAA can't control which markets get their music, heaven forbid a black consumer getting a listen to Kenny G by accident.

      Even worse: Heaven forbid a consumer with a pulse getting a listen to Kenny G by accident!

    3. Re:The RIAA has a point. by shark72 · · Score: 1

      Your post was funny and all, but...

      "The RIAA can't pay iTMS DJs and Producers to force users to download the hot song of the week."

      Have you listened to the iTMS "new music Tuesdays" podcast? While not as nauseating as the Top 20 on 20, it's got a lot of the popular stuff you see elsewhere.

      "The RIAA can't pay iTMS to list the proper version of the Top 40 Charts."

      They don't need to. The list of top tracks (scroll down a bit for the list) and albums sold on the iTMS matches up very closely with the airplay and sales charts published by Billboard.

      "The RIAA can't control which markets get their music, heaven forbid a black consumer getting a listen to Kenny G by accident."

      Maybe I don't get the joke here, but why would the RIAA want this?

      --
      Sitting in my day care, the art is decopainted.
    4. Re:The RIAA has a point. by Myopic · · Score: 1

      why can't riaa pay apple to push songs on itms? in fact, is there any reason to assume they don't?

      ps no one should listen to kenny g

    5. Re:The RIAA has a point. by Coniptor · · Score: 1

      "iTMS is destroying the RIAA's right to speech:"
      horseshit

      "1. The RIAA can't pat iTMS DJs and Producers to force users to download the hot song of the week."
      They have no buiness doing this anyway and the RIAA doesn't force me to do ANYTHING.

      "2. The RIAA can't pay iTMS to list the proper version of the Top 40 Charts."
      It's Apple's service. They can do what ever the fuck they want asshat.

      "3. The RIAA can't control which markets get their music, heaven forbid a black consumer getting a listen to Kenny G by accident."
      Let me get this straight. Your saying that black people should buy black music and white people should buy white music and they some how don't have control over this any longer? When the hell did they ever? I'm also so sure we all appriciate being cast into stereo typical roles and being told you people should be listening to this while you people should be listening to this. You don't think people have a mind of their own to like listening to the things THEY THEM SELVES want to listen to?

      By the way I think your a bit confused as to just what free speech is.
      Free speech would be me telling you in public that your a media cartel worshipping mindless piece of shit who's taking up good oxygen everyone else could be making use of.

      By your interpretation of free speech however my free speech is obstructed if I can't wrap my hands around your neck and deprive you of that oxygen your wasteing by existing there by doing everyone else a favor. That goes for the shit for brains that modded you up as well.

    6. Re:The RIAA has a point. by aquabat · · Score: 1

      WHOOOOSH!!!!!!

      --
      A republic cannot succeed till it contains a certain body of men imbued with the principles of justice and honour.
  61. Didn't CD sales increase the sales of CD players? by ivanmarsh · · Score: 2, Insightful

    Why should Apple be treated differently than all the other music player manufacturers in history?

    Did the music industry get a cut of Sony's CD player sales? Toshiba's? JVC's?

    It's time for the RIAA to have a RICO case brought against it.

  62. good luck by nunchux · · Score: 2, Insightful

    I don't think there are many who love the iTunes music store so much that they run out and buy iPods. Sales may take a hit if the store is brought down, but the iPod won't lose its status any time soon. Anyway, there are so many other ways to acquire music for it-- and more importantly, most of us already have the collection to fill it.

    What I think we may be looking at is that the labels want their own online music services (and in the case of Sony, also sell their own players) so there is no moody Apple middleman between them and the consumer. Again, Sony is already there, and others may be too. I'm not sure where the trails of Warner's parent and sister companies lead.

    1. Re:good luck by heeeraldo · · Score: 0

      I don't think most people actually do fill the iPod; I remember reading the results of a poll saying that people had, on average, 375 songs on their MP3 players. ...here's the link if you're interested: "375 Tunes in My Pocket[pdf]

  63. I think Apple needs to do a "week without iTunes" by artifex2004 · · Score: 4, Interesting

    The music industry needs to see what would happen if they kill this cash cow by trying to milk it too hard. One day would probably not be sufficient, so let's have a week, or maybe just 5 days, where you can't buy anything from the iTunes store. Make it be the last week or 5 days days in a reporting period, because a lot of the pent-up demand will recover the next week, probably.

    Better yet, let's see Steve Jobs say, okay, you want variable pricing, we'll hook up with Magnatunes and CDBaby and sell their tracks for 50-75 cents, or something. Those indy labels could really use the visibility, and the artists might see more revenue even at that lower rate than the ones beholden to RIAA and the big corporations. Some of them might even ask Apple to distribute their tracks as m4as, not m4ps, and would probably volunteer a lot more free tracks of the week.

    Also, I can't believe they want some of the revenue stream from iPod sales. They had nothing to do with their creation, sales, marketing, etc. They're just becoming more obviously money-hungry than ever before.

  64. Sorry, it's a free market by Anonymous Coward · · Score: 0

    Entertainers are so damn greedy. They're just a bunch of working-class fools like the rest of us -- what makes them think they deserve so much money for their simple little melodies?? 90% of their music these days sucks so bad: if you ask me, getting folks to pay pennies for it is a phenomenon to behold.

    Music ain't like gas; I can live without that extra Paul McCartney track that nobody likes anyway. Shucks, I'll get lame tracks off my gnutella client long before I'll pay a dime over 39.

  65. Ten points by labratuk · · Score: 1

    Ten points goes to the first comedy "Isn't Steve just great fighting for our rights this way? This is what makes Apple so different. I love my iPod..." post.

    --
    Malike Bamiyi wanted my assistance.
  66. Is that you, Lance? by Anonymous Coward · · Score: 0

    EOM

  67. Here's a motive by evil+agent · · Score: 1
    I think the music industry is so desperate (and delirious at this point) that they believe that raising the prices on iTunes will send consumers back to buying cds. Which is of course ridiculous.

    Let the increase in file sharing commence!

    --
    End transmission.
  68. How I'd like it to play out by chmilar · · Score: 4, Insightful
    Here is how I'd like to see the scenario play out:
    1. Record company cuts Apple off.
    2. Loss of revenue for record company.
    3. Record company crawls back to Apple. Jobs negotiates new terms, and record company has worse deal (lower price and/or lower percentage) than now.
    --
    Reading Slashdot is ruining my spelling and grammar.
    1. Re:How I'd like it to play out by LarchOye · · Score: 1

      That sounds like the best case scenario for the record biz... Can't you come up with anything better ;)

    2. Re:How I'd like it to play out by MaxSterling · · Score: 1
      I would like:
      1. Record company cuts Apple off.
      2. Apple removes sharing and burning restrictions from iTunes (don't play nice with us, we won't play nice with you!)
      3. Loss of revenue for record company.
      4. Record company crawls back to Apple, begging and pleading. Jobs negotiates new terms, and record company has worse deal (lower price and/or lower percentage) than now.
    3. Re:How I'd like it to play out by blonde+rser · · Score: 1

      What sort of burning restrictions does itunes have? I've never run into any.

    4. Re:How I'd like it to play out by WiseWeasel · · Score: 1

      One playlist of protected audio tracks can only be burnt 7 times. After that, you'll need to alter the playlist somehow.

      --
      "I like systems, their application excepted", George Sand (French)
    5. Re:How I'd like it to play out by Deadguy2322 · · Score: 0

      Honestly, who really finds this to be an onerous restriction? I can't think of any need to burn the exact same playlist more than twice, and if I did, I could always just dupe the disc in Toast.

      --
      Check out my foes list to see who is so retarded that they can't use the signature line!!!
  69. You are smoking something by soft_guy · · Score: 4, Insightful

    No. In the case of "Big name artists", who cares about their new Albums? You only care about their back catalog (i.e. albums they have already recorded.)

    By definition every single record that comes out is a crap shoot. So, let's say Apple could sign, let's say Paul McCartney. That won't help them with Beatles music, Wings, or McCartney's solo albums from the 80s. The best you could hope for is signing an established artist who is making hit albums currently.

    These people either already have gone independent, or else they are probably already in the pocket of the record companies. I don't see this plan working for any established artists.

    For new artists, sure they way to go seems like being independent and marketing yourself via the web and via iTMS. I'm not sure how this gets you any radio play, or on MTV, but it probably beats the extremely bad deal that most people get from record labels. Again, I'm not sure what Apple would have to gain by being "their record company". Why not just let independent labels sell via ITMS? Otherwise, Apple would end up funding marketing efforts for thousands of flop albums.

    Again, the problem is the existing back catalog that the labels own.

    --
    Avoid Missing Ball for High Score
    1. Re:You are smoking something by LWATCDR · · Score: 1

      "Again, I'm not sure what Apple would have to gain by being "their record company". "
      Last time a checked the current record companies are making a lot of money so Apple would gain a lot of money.
      What the record companies don't seem to get is that iTunes is a hit because of the iPod not the other way around.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    2. Re:You are smoking something by ndansmith · · Score: 1

      Luckily for Apple the Beatles, Wings, and McCartney (plus Harrison and Starr for that matter) are already on Apple Records.

    3. Re:You are smoking something by PeelBoy · · Score: 1

      You have to start some where. Having the attitude like this means nothing will EVER get done about it. Nobody said it was a short term solution.

      You seem to assume that there will never ever be any new artists creating hits and that's complete bull shit. If Apple could grab some up and coming artists and turn out some hits maybe their service would look more attractive to others and start a chain reaction, but how would they know if they don't try?

      It's obviously a risk worth taking otherwise there wouldn't be any record lables at all as it is because nobody would have ever took the risk and spent the money to make it happen.

    4. Re:You are smoking something by Anonymous Coward · · Score: 0

      Ok, how is this for a gameplan.

      1) Apple buys out Apple Records. They have $7.53 Billion with a B in cash reserves - this should be a nice little purchase that would barely dent that nest egg. No Apple Records, no binding agreement. And they have a nice back catalog.

      2) Apple starts picking off other labels, one by one. The recording industry trades artists and even smaller sub-labels like so many baseball cards. Being a player with a nice wad of cash, you could build your own empire.

      3) Yes, the two steps above are likely to push the major labels to boycott ITMS. Who cares. Jobs spins it as the industry being greedy and he's trying to fix it. He still has a relatively captive audience of iPod owners, with a significant chunk sympathetic to his cause.

    5. Re:You are smoking something by kamapuaa · · Score: 1
      Why not just let independent labels sell via ITMS? Otherwise, Apple would end up funding marketing efforts for thousands of flop albums.

      It shows how hypocritical Slashdot can be about the music industry - for all the people calling for Apple to sign independent labels or even start one of their own, nobody seems to realize that Apple already carries many indie labels, and even one-band labels can sign up with iTMS. Only, almost nobody actually cares about Indie Music.

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
    6. Re:You are smoking something by MMaestro · · Score: 1
      Or you could forego the whole 'we need a big hit artist' strategy and go for the 'lets just lightly market a bunch of possibles, see how it pans out and then go full support on those who come out on top' strategy. Heck, Apple could top it off by having some songs given away for free (marketing) AND discount all of their songs initially so people develop a 'well its so cheap I guess I'll try something new out' mentality.

      This is the internet, you don't pay millions of dollars just to have an ad put in magazines or on TV. If Apple REALLY needed to, they could shift to a modified Bittorrent system to save on bandwidth costs (arguably their biggest expense after the costs of dealing with the RIAA.)

  70. Re:The music industry is stupid enough to do this. by tktk · · Score: 1
    What about the bands & artists? Didn't iTunes Japan start without the Sony label? And some Japanese artists bascially jumped ship just to get their tracks onto iTunes Japan? I think that maybe a small number of US bands would try the same.

    But iTunes Japan thing might have been a rumor since I don't remember hearing any followups on that story.

  71. Well by Pooldraft · · Score: 1

    This leads to one conclusion, i guess i will continue to use P2P hahahahaha. !Creative Commons!

  72. Mark the RIAA songs by MightyYar · · Score: 3, Interesting
    A feature I asked for from Apple a long time ago was information about whether or not the label distributing the song was independant or not.

    Not only would this be a good time for Apple to implement this as a sign that they won't back down, it would finally free me of checking RIAA Radar everytime I go to the iMS to download a song!

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  73. Why iTunes? by R.Mo_Robert · · Score: 2, Insightful

    Why are they going after iTunes, which coss 99 cents, while many (most?) other WMA services offer tunes for 89? And why do they care how much the retailer actually changes the consumer for the song? Shouldn't the record company just be concerned about how much money it's getting from each one, regardless of the retailer's price (leave the reatailer to decide how much profit they want after that)?

    --
    R.Mo
    1. Re:Why iTunes? by zxnos · · Score: 1
      Shouldn't the record company just be concerned about how much money it's getting from each one, regardless of the retailer's price

      why should consumers buy the disk if the music is considerably cheaper elsewhere?

      --
      always mosh clockwise
    2. Re:Why iTunes? by n8_f · · Score: 4, Insightful

      Because Apple's contract is up. They negotiated a contract for 2 (or has it been 3?) years and now they have to re-negotiate the contract. Then the record companies can use this to force the next contract re-negotiation to raise prices (kind of like IP "parity" - Australia grants 200 year copyrights so now we have to too stay even - except we tack on an extra 50 years and now Australia...). Also, iTMS has like 85% of the market, so the recording companies have to take them down a peg. They want competition amongst distributors, a typical divide and conquer strategy. If they were solely reliant on digital distribution, they would be fucked, because Apple could basically dictate terms to them. They want a bunch of digital distributors with small percentages of the market so that if any of them get out of line, they can destroy them with out affecting their bottom line. It is very similar to Microsoft, in that they encourage fierce competition amongst hardware manufacturers, leading to lower prices and razor-thin margins, while maintaining a monopoly on the software needed for that hardware, ensuring they can enforce high prices and even higher margins.

      I really hope Apple holds out, because otherwise we are going to be screwed, ceding all market power to the RIAA.

    3. Re:Why iTunes? by suzerain · · Score: 1

      I don't think it's about price, I think it's about control.

      The RIAA is, essentially, a cartel. They don't make money by providing a service, really, they have happened to be able to build an empire only because they have sold a product which was unique in that it could not be distributed without a strong central authority.

      File sharing really didn';t affect their revenue at all; that's a lie (they intentionally released fewer albums and so forth during the 'fight Napster' days. But what it did do was remove their POWER. And power is really the only thing they have that has worth.

      All of the people who really matter in the industry -- musicians, producers, publicists...even lawyers...all could essentially be freelancers. The only thing the labels offer, essentially, is complete control of a whole infrastructure (they own music, they own radio, they own distribution, they own the chart makers).

      But when radio becomes obsolete, charts can be tracked in real-time with o funny business, artists can distribute on their own...then I ask you, what, again, do the labels have to offer?

      This is what they fear: the truth that their entire business model is a sham. That they basically make money by exploiting artists and controlling a cartel. They just want to figure out how to get you to pay for "I Can't Get No Satisfaction" one more fucking time...by selling you an album, and a cassette, and a CD, and a digital file, and by incorporating the price into some video game or movie it's used in, or by charging the bar royalties on the jukebox.

      Their whole business model is complete nonsense. The fact that they are demanding a share of IPOD profits proves that they are drunk on power. If I were Apple, I'd be smiling, because soon, they can just encourage artists to self-distribute through the iTunes store, and give them a fat chunk of the profits, rather than the bullshit pennies on the dollar the labels will give them.

      That way, artists won't need to worry about being as mass-market popular to make the same amount of money. This should mean that artists will stop releasing so much tripe that caters to the herd, since they will be able to make a living in much smaller niches.

      The metrics of the industry are going to change, eventually...it will just take time, but the real losers in all of this will be the labels, and that's why they're acting like such assholes.

      --
      gameDB
    4. Re:Why iTunes? by anti-human+1 · · Score: 1

      I think Apple's predicament with Apple Records is going to put them at a disadvantage in this fight. I believe the RIAA will pressure Apple Records to be uncooperative with Apple Computer. What that will eventually lead us to, if Apple gets dumped/dumps the RIAA, is indie labels getting cozy with Apple. There's plenty of great indie label music out there, and I think if Apple jumps on the opportunity, they could have a much better arrangement financially. Not to mention that indie artists have a much better chance of being able to actually MAKE money doing what they (I?) are passionate about... :P

      Just for phun, a quick glance at itunes.com reveals the following promos:

      Stevie Wonder
      Simple Plan
      U2
      Bob Dylan
      Black Eyed Peas
      Barlow Girl
      some Pick Your Faves garbage from the GAP

      Now imagine that maybe you haven't heard three of these names everywhere for twenty years, and the rest weren't just flavor of the week dren. (ooh, sorry to Barlow Girl for the generalization, I won't be trying out the free download but thanks)

      (ok now make a point)

      I think that we as listeners (and creators!) have much to benefit from Apple Computer and the RIAA parting ways. The Legal hurdles Apple Computer have had to deal with for the last two decades will probably become worse (at the RIAA's discretion). However, exposure to new, independent music could prove to be a boon to artists and to Apple. Remember mp3.com? If anyone can pull off a stunt like this, Apple can. [/old school mac evangelism :P]

    5. Re:Why iTunes? by vhogemann · · Score: 1

      Then the Music Industry is f*****. The iPod is what makes the ITMS work, and not the other way around.

      There won't be other ITMS unless another iPod appears on the market.

      --
      ---- You know how some doctors have the Messiah complex - they need to save the world? You've got the "Rubik's" complex
    6. Re:Why iTunes? by WaltFrench · · Score: 1

      I think this is right on target, but there are some other wrinkles...

      With Apple having nearly 100% market share, there's NO incentive for anybody else to open another music store and collect 9 cents times the 38 albums they'd sell. If everybody's price rises to $1.39 and the stores can have a 25 cent margin, then other companies might compete with iTMS. Obviously Apple doesn't want this, while the RIAA does -- so that it can sell music to those people who buy non-iPod players. (Right now, people who buy other MP3 players are pretty starved for "legal distribution" support, meaning that they probably rip off music rather than buy it.)

      If Apple gets much bigger (and by selling multiple millions of iPods a year, it looks like a pretty sure bet), the RIAA goes from holding all the cards as a near-monopoly, to being vendors to a true monopoly. While IANAL, the RIAA sounds dangerously close to sharing negotiating strategies through the press, which is cartel-type price collusion -- illegal as hell. They must be at least a little desperate to allow the press to report how they're talking among themselves in conferences about how they're trying to raise prices.

      Personally, I can deal with the idea of some tracks at 79, some at 99 and some at 1.29 -- the "complexity" argument is BS -- Job's cover for his real rationale. Variable pricing might even be good for me, because I mostly buy stuff from the back catalog that logically would command lower prices. But Jobs is reasonably (from his perspective) trying to protect the low-price, low margin deals that drive the majority of sales. Making it hard to buy music online EXCEPT thru iTMS means that iPods are the only sensible player. Profit!!! for Apple.

      While I'm not a great fan of the RIAA, I'd ask /.ers to realize that it's not just the accident of who got into the music biz that they're acting so aggressively against our short-term interets. It's because they have grown up in a world where that was the meal ticket to success; if they weren't predatory they didn't survive. The industry actually DOES perform a function for artists by promoting them to radio stations (sometimes illegally, thru payola)), record stores and customers (thru big ads in magazines, deals w/ movie studios, etc....). Otherwise, why would any artist sign? So what we're seeing is comparable to Detroit in the 70's: their oligopoly is falling apart; niche artists increasingly have alternate venues (lots of jazz artists are selling exclusively thru "personal" web sites). The RIAA is fighting for its life, because they don't want anybody else pre-empting the "Here's the next great artist" thing.

      And the conclusion? Apple has equal incentive to charge more -- "whatever the traffic will bear -- when they are in control; their history is rife with it. No surprise. It's not because Jobs is a jerk (it doesn't matter whether he is, or isn't), but because it's Econ 101 and Jobs is trying to run a business that has a responsibility to its shareholders who put up the grubstake, to make money.

      --
      "Inquiring Minds Want to Know!"
  74. Or like forcing computer makers bundle windows? by Anonymous Coward · · Score: 0

    This is monoply versus monopoly. The RIAA is acting as a cartel and Apple owns the Digital Rights Managed player market. I know there's a lot of love for Steve Jobs around here, but he's a monopolist at least as far as iPod goes.

    I hope they both lose.

    And I hope Microsoft doesn't win after these guys beat each other up.

    1. Re:Or like forcing computer makers bundle windows? by calbanese · · Score: 2, Insightful

      You'd have a lot of trouble convincing a judge that the Apple enjoys a monopoly on MP3 players and online music stores.

      Its like saying Ford has a monopoly on Ford automobiles when there are plenty of competitors.

      There is no monopoly without a relevant product market. There is no "iPod" market. There is only an MP3 player market.

    2. Re:Or like forcing computer makers bundle windows? by HTH+NE1 · · Score: 4, Insightful

      I know there's a lot of love for Steve Jobs around here, but he's a monopolist at least as far as iPod goes.

      That's like complaining Gillette has a monopoly on Mach-3 razor blades, except that Apple's razor can also use generic blade cartridges. It just can't be used with the proprietary DRM'd WMA blades of the other razor makers.

      And further, I don't need to own an iPod to play DRM'd AAC files. They'll play on the iTunes application on the computer too.

      (I'm not analogizing the razor-and-blades marketing strategy to the iPod and AAC.)

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    3. Re:Or like forcing computer makers bundle windows? by Anonymous Coward · · Score: 0

      So the ipod's play ogg vorbis now?

      THAT would be news to me...

  75. Fuck 'em by Anonymous Coward · · Score: 0

    If they want to kill the goose...then they don't deserve the eggs.

  76. I like STEALING THINGS by Thud457 · · Score: 5, Funny

    Fine with me, I'll just go back to stealing music.

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

    1. Re:I like STEALING THINGS by tivoKlr · · Score: 1
      Ditto...It's not like music is worth the money at retail anyway. Plus I live 100 miles from a good music store with a solid selection, so it's back to ****** for my music.

      Idiots.

      --
      Ocean is land, covered with water.
    2. Re:I like STEALING THINGS by big_groo · · Score: 2, Informative

      Like you ever stopped. And it's not 'stealing'. It's 'copyright infringement'.

    3. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0

      The music industry can keep on doing what its doing, eventually we will never have to hear about them again as they will dig their own grave and have nothing to show for it but ego's and overdue bills.

      keep up the good work music industry you are going right into the hole!

    4. Re:I like STEALING THINGS by arminw · · Score: 2, Interesting

      ....just go back to stealing music.....

      You use the wrong term. It's called copyright infringement. When you steal something, the original owner no longer has whatever you stole. It's not piracy either, since you never board a ship on the high seas. Words must still have true meaning.

      --
      All theory is gray
    5. Re:I like STEALING THINGS by cdrdude · · Score: 1

      The meaning of words changes over time. With the advent of computers and the intraweb, and chatting programs, they are changing faster than ever.

      --
      This sig is neither interesting, nor humorous. Including meta-humor.
    6. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0

      Parent is...informative?!

    7. Re:I like STEALING THINGS by rob_squared · · Score: 2, Interesting
      English is a living language, the word fuck used to mean "to hit" and faggot means "a bundle of sticks." There's a very real chance that words like piracy and theft *will* apply to downloading music.

      Mind you, I'd like downloading music to only be referred to as copyright infringement.

      --
      I don't get it.
    8. Re:I like STEALING THINGS by Lussarn · · Score: 4, Insightful

      Speaking of wrong terms. You don't buy things from iTunes. You licence the media to be played on max 5 authorized computers at a time. As soon as you licence the media the economic value of the media is zero since it's illegal to resell the licence to any other part. The licence for your old media sometimes changes retroactively as Apple makes new deals with the record companies. If Apple should decide for whatever reason to take away their licence servers your music is gone forever.

      No, that doesn't sound like the old school term "buy" we use when we go to the candy store.

      I don't really care if Apple (and the other music stores) change their ways of doing business but I think it's VERY dishonest to call someting "buy" when in fact it's more like renting. I want to really own stuff I buy, as it is now it's "you own it just as much as you need to listen to the music they way we say you are allowed to".

      The subscription models is better in this regard since they don't confuse you to think you own the media when in fact you don't.

    9. Re:I like STEALING THINGS by kubevubin · · Score: 2, Insightful

      You won't be the only one. Personally, I'd still purchase mine, though, as I don't get my music from iTunes. I certainly find it more than just a bit disappointing to know that the music industry would sink so low as to demand revenue for a product whose sales they had no part in.
      What's even sadder about their attempt is that not everyone who purchases an iPod isn't necessarily purchasing new music. Many people rip their existing collections and import them to their iPod, so how does that entitle anyone in the music industry to a cut of iPod sales? Parasites.

    10. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0
    11. Re:I like STEALING THINGS by aichpvee · · Score: 1

      I think it should go the other way too. Stealing should also include receipt of product/service in exchange for payment. In fact, "steal" should mean any transfer of goods or services. As an example I am stealing my cable internet service for the "already low price" of 54.99$/month.

      --
      The Farewell Tour II
    12. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0

      Well if you burn it to a CD its there forever so it is yours wether or not the licence servers go down.

    13. Re:I like STEALING THINGS by arminw · · Score: 1

      .....I want to really own stuff I buy....

      You don't really "buy" a house or a piece of land either. All land belongs to the king (govt) and you get to rent it for a certain sum of money each year. Nowadays it's called property tax. In some places you don't "own" other things either. There is personal property and inventory tax and who knows what other taxes related to stuff you have. You don't even "own" your life. It is loaned to you by a gracious creator thereof for a certain amount of time, whether you choose to believe that or not. Ownership is a stubbornly persistent illusion.

      --
      All theory is gray
    14. Re:I like STEALING THINGS by lordofthechia · · Score: 1

      "There's a very real chance that words like piracy and theft *will* apply to downloading music."

      I hope not. Just as much as corporations that "rape the land" aren't rapists, killing the competiton isn't really killing, and stealing someone's heart doesn't make you a thief. I hope people will realize that stealing in "stealing music off the internet" is just a conveinient generalization (for copyright infringment) and not actual theft.

      Now I know alot of people who download music off the internet because they're cheap and don't want to pay any price for music, but I wouldn't mind paying a fair price (and I do). Im just fed up of being taken advantage of with friggin CD price fixing and general greed of the RIAA. I used to *work* at a retailer that sold CD's yet just like everone else I had to pay the same $16 a pop as everyone else (got killer discounts in other departments). Rumor was it the store made more money off the bargain bin CD's (yes the $1 ones) than they did off the regular ones. Now I just *buy* my music from magnatune , cdbaby , and half.com ($2 and under cd's :).

      Never again in my life will the RIAA see a penny from me. I don't care how much I like an artist of theirs, i'll just wait till they die off (the RIAA not the artist). Greed of that magnitude should be punished. This whole iTunes ordeal is surrealistic how open they can be about their greed. I'm thinking of mailing the RIAA my monthly music expenditures just so they can see how much money I spend *elsewhere* to get my music fix.

      --
      Georgia Tech, the leader in Chia(tm) technology.
    15. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0

      Whoever modded this insightful, doesn't get it.
      When I BUY a track from Apple, I OWN said track.
      It's 'licensed' to play on only 5 of my computers.
      *BUT* I can burn it to 800,000 CD's if I want.

      Did you hear that part?

      I CAN BURN IT TO A CD

      so, therefore and summarily, your statement, I want to really own stuff I buy, as it is now it's "you own it just as much as you need to listen to the music they way we say you are allowed to". is uninformed, incorrect, stupidity.

      I'll repeat, The music you buy from Apple can be burned to a CD

      Maybe you didn't hear the news, When you buy a track from Apple, you can burn it to a CD

      Oh, and you know those compact disc things? YOU CAN BURN THE TRACKS YOU BUY FROM APPLE ON THEM!

      So, the next time you're thinking, "I can only listen to this track on 5 of my computers" don't forget, THE MUSIC TRACKS YOU BUY FROM APPLE CAN BE BURNED ONTO A CD

      stupid.

    16. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0

      here comes robin hook n his merry prankstahs...greed begets freed. all information wants ta be see'd

    17. Re:I like STEALING THINGS by Anonymous Coward · · Score: 0

      Sell yeour burned copy on ebay smartass and see if it's legal...

    18. Re:I like STEALING THINGS by TheoMurpse · · Score: 1

      However, there are those of us who would like to keep legal terms unambiguous. What's next? Should we allow "arson" to be co-opted to also mean "burning backup copies of your CDs"? Then, can't you imagine a world where people are accused of "arson", and even the psychological effects it would have? Little kids would learn that arson was bad, and then think burning backup CDs was bad. That is why we think the co-opting of "piracy" and "stealing" is bad.

    19. Re:I like STEALING THINGS by cookiej · · Score: 1

      Ah. Try selling ANY recording made via ANY medium on ebay to see if it's legal, dumbass.

      The point is that you can LEGALLY burn a copy of a song you buy on iTunes to CD.

      Try that with a subscription service.

    20. Re:I like STEALING THINGS by Golias · · Score: 1

      "Steal" and "Theft" are not legal terms.

      The legal term for what you are talking about is larceny.

      "Stealing" has always been a casual usage term, and there's nothing wrong with applying it to any situation where you acquire something without paying for it, including the free copying of media files which you should have paid for.

      --

      Information wants to be anthropomorphized.

    21. Re:I like STEALING THINGS by Anonymous Coward · · Score: 1, Insightful

      You live more than 100 miles from a computer? Amazon dot fucking com, motherfucker.

    22. Re:I like STEALING THINGS by JudgeFurious · · Score: 1

      Well, you know they (Apple) call it "buying" a song on iTunes and as far as I'm concerned I've bought the song. I know you're right on this and I can only speak for myself but I'm not too terribly demanding when it comes to how good stuff sounds. The "make a CD and then rip it back to mp3" bit doesn't bother me since I was going to make a CD to take out to my car anyway and I'll always have that original DRM'd AAC file. If the sound suffers some small amount from all of this then so be it. I used to buy LP's when I was a kid and took poor care of them. Then I bought my music on cassette tapes. What I get now is well within my idea of acceptable.

        I buy albums on iTunes and I make CD's out of those albums. Once the track is on the CD the DRM's out of there. From that point forward I do with it what I please.

      --
      Appended to the end of comments you post. 120 chars.
    23. Re:I like STEALING THINGS by James_Aguilar · · Score: 1

      Because of this, music industry == pwnt.

    24. Re:I like STEALING THINGS by KarmaMB84 · · Score: 1

      You do realize what actual pirates did on the ocean, right? I'm pretty sure they stole shit...

    25. Re:I like STEALING THINGS by TheoMurpse · · Score: 1

      That was my point -- we aren't "pirating" and we aren't "stealing" in the same way that someone who burns a CD isn't committing arson! The terms should not be co-opted.

  77. its about profits by prk60091 · · Score: 2, Insightful

    the real story is that now w/itunes there is a 3d party who has real life numbers on music sales. guess who doesn't want that info out of their control? the companies. why you ask? because the artists now have the ability to verify the companies audits. hmmmm whoz getting fsckd

  78. Biting the hand that feeds it. by RayDude · · Score: 2

    The record labels are biting the hand that feeds them. Talk about choking the goose that laid the golden egg, and now they want to break its neck to get the gold out all at once.

    Stupid stupid stupid.

    I hope they get what they deserve.

    Six weeks in hell.

    Raydude

    1. Re:Biting the hand that feeds it. by Midnight+Thunder · · Score: 4, Insightful

      The record labels are biting the hand that feeds them.

      They bite the vendors, and they screw everyone else, including the artists and the buyers. If this is not monopoly abuse then I don't know what is. I think your average drugs dealers is a bit better than these guys - even they aren't, at least the law knows how deal with drugs dealers.

      --
      Jumpstart the tartan drive.
    2. Re:Biting the hand that feeds it. by ack154 · · Score: 4, Insightful
      I think your average drugs dealers is a bit better than these guys - even they aren't, at least the law knows how deal with drugs dealers.


      I think that should be "at least the law WILL deal with drug dealers."

      So far, no one really seems to care about what the music industry is doing. Because if someone says something to them, they will just scream "PIRACY! PIRACY!" and the government turns the other way... "oh, carry on then."
    3. Re:Biting the hand that feeds it. by anonicon · · Score: 1

      You misspelled 'years.' ;-)

    4. Re:Biting the hand that feeds it. by Haeleth · · Score: 3, Funny

      I hope they get what they deserve. Six weeks in hell.

      Man, this sucks. When I was a lad, if you earned something it was yours. Buy a phonograph record? It's yours, you keep it, you play it as often as you like, wherever you like, till it wears out. Fall foul of a capricious deity? You're damned to hell for all eternity, where your soul shall be tormented in lakes of burning sulphur, yea, and your worm didn't die, nor was your fire quenched. Now it's all "DRM this" and "license that" and "purgatory the other". Your music expires after a month, the TV shows you record delete themselves the next day, and you can't even get into hell for more than six months at a time before you have to go out and sin some more!

    5. Re:Biting the hand that feeds it. by cgenman · · Score: 2, Insightful

      They bite the vendors, and they screw everyone else, including the artists and the buyers. If this is not monopoly abuse then I don't know what is.

      But they don't have a monopoly over Apple. Apple would still be selling oodles and oodles of iPods if they never had iTunes, iTMS just gives them respectability. If the iPod was MP3-only, it would still rock as a player. After all, you're not going to fill a 40GB player without at least doing some major CD rips.

      Jobs could tell the record industry tomorrow to screw, and the dip might not even register in Apple's revenue stream. iTMS is good for Apple's future, but it isn't as important to Apple as creating a legitimate online revenue stream is to the music industry.

    6. Re:Biting the hand that feeds it. by Skynyrd · · Score: 2, Funny

      I think your average drugs dealers is a bit better than these guys

      True. At least a drug dealer is selling something people want. Unlike the crap the record industry is producing.

    7. Re:Biting the hand that feeds it. by coolgeek · · Score: 1

      These music industry execs have no idea what Jobs' end game is. Neither do I actually, but here's what I think it is. Music company packs up their toys and goes home. Apple releases iMusicAgent, a variation on their existing software for uploading to iTMS. This version is freely downloadable, and anyone can upload their tracks, artwork, etc. Apple cuts the artist in for a straight 50%. Apple will hire talent scouts that will pick the cream of the crop. Such artists will be offered a deal for a lower cut, but still way better than any current record company offers, in exchange for Apple actively promoting them. They can give laggard artists a little taste of what may happen by prominently displaying their merchandise on iTMS for a day or two.

      The artists make more money, Apple makes more money. The current music industry players start to lose their relevance. Cars start coming with an iPod interface as a factory installed options or freebie. Certain well-known acts will jump ship, face the lawsuits, rename themselves, etc. and come on board (think "The Artist formerly known as Prince"). Virtually all the young new acts will be attracted to the lower barriers to entry, as well as not having to sell their souls to the devil. By 2016, 50% of all new music worldwide will be sourced by Apple.

      Jobs certainly has the stones to do this, and Apple has quite a nice cushion of cash to speculate with. Also don't forget before iTMS busted onto the scene, there were rumors circulating that Apple might purchase one of the record labels. Taking over one of the existing shops would be a good stepping stone toward creating a new music industry.

      I for one welcome our new music industry overlord..

      --

      cat /dev/null >sig
    8. Re:Biting the hand that feeds it. by thogard · · Score: 1

      Jobs has the contacts in the big bands to do it as well. He also has enough cash to pull off the gig.

      There also is a wild card involving some of Job's good friends and the guys who are bailing out Michael Jackson. Someone soon is going to end up with huge catalog of some of the best selling songs of all time or at least some redistribution rights.

      There are may be secret deals between Apple Records and Apple Computers that may come to light in the near future as well. While the pair have been in court over issues of their agreement, I don't think anyone on the outside knows exactly what is going on.

      Pulling the plug on apple might just be the lsat stupid thing the RIAA and their cronies ever do.

    9. Re:Biting the hand that feeds it. by Midnight+Thunder · · Score: 1

      How about buying out Apple Records and make them their record company. :)

      --
      Jumpstart the tartan drive.
    10. Re:Biting the hand that feeds it. by Anonymous Coward · · Score: 0

      They are afraid that artists might realise that the recording industry people are redundant, artists might get inspired to publish their music online, directly from the artist to the consumer, eliminating the middlemen (the RIAA gang).

      Today the average artist gets something like what, 10% from each CD?
      If they eliminated the middlemen they would not only get more money from each song, but would be helping the consumers aswell.
      They could charge much less than todays cd prices and still get much more money per song than before.

      Everyone wins (exluding the parasites in the recording industry association).

  79. Why do they feel powerless by Anonymous Coward · · Score: 0

    I don't see why they care what Steve Jobs charges. If they want profit variation per song, they have complete control over the wholesale prices they charge Apple.

  80. Music Industry is right .. sort of by mmeister · · Score: 2, Interesting

    The Music Industry is right about the need for variable pricing.

    New tracks should be $0.99
    Older tracks should be $0.50

    Oh wait -- you actually think that a track is worth more than a buck even as you try to continue to limit how I listen to that track?
    I don't think so.

    I'm not a huge fan of DRM, but Apple does make it fairly simple and it doesn't really get in your way for day to day uses like some others do.

    RIAA's cut on these tracks is PURE PROFIT. They're not paying for the bandwidth to download the music. They're not paying for software changes to showcase the music. They just get a big, fat check. And as is typical with these greedy RIAA execs, they want more. Why not, they've been stealing from musicians for decades without providing real value added services, so they feel they should get a cut of everything. Hopefully they're going to get a dose of reality real soon.

  81. Here's what Apple needs to do... by Chordonblue · · Score: 5, Insightful

    First of all - this is a power struggle, plain and simple. The recordcos are, once again, shooting themselves in the foot. They seem to think they're still in charge - Apple should show them otherwise. The first record company to pull out of iTunes should be made an example of.

    Let's say Sony decides to pull out first. Well, then everytime a customer tries to do a search for one of their artists or songs (like Switchfoot for instance), have a big, HUGE message for the customer about how Sony wants to charge more than anyone else does and that Apple isn't playing. Let the iTunes customers know about what Sony is trying to do and to contact them to protest their decision.

    Then when Sony finally comes back to the table, Jobs should demand that Sony's songs go 2 for 1 for a time. Jobs has a lot of power here - iTunes is the number one place to get digital music. I hope he realizes it.

    --
    "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
    1. Re:Here's what Apple needs to do... by Walking+Dude · · Score: 1

      Dish did this with Viacom a couple of years back. Viacom wanted Dish to start carrying more of their crappier channels and tried to seriously up the charges for MTV and Comedy Central. This was right before contracts expired. Dish responded by scrolling a message at the bottom of Viacom's channels telling their viewers to cal Viacom. And when Viacom pulled the plug, Dish put a notice up on each channel that was pulled. The CEO also went on one of the Dish channels and explained the whole situation, how much it would cost each subscriber, etc to meet Viacom's demands. Viacom stayed pulled for about 3 days and I believe Viacom got a slightly higher fee and no additional must carries out of the deal.

      Some times the Service Provider needs to fight back.

    2. Re:Here's what Apple needs to do... by jessecurry · · Score: 1

      exploiting a power position is no way to get ahead in the long run; Let's say Sony does pull the plug, have all of the pages that previously held their artist information have a small message that state that Sony pulled their artists due to a conflict over pricing.
      When Sony realizes that they made a mistake, welcome them back with open arms with the same pricing structure as before.
      If you act like too much of a prick then the other side will start gunning for you. Just look what the rest of Europe acting like pricks caused Germany to do. I'd hate to see Sony seriously gunning for the top spot in digital music distribution.

      --
      Those who know, do not speak. Those who speak, do not know. ~Lao Tzu
    3. Re:Here's what Apple needs to do... by vought · · Score: 5, Informative
      Let's say Sony does pull the plug, have all of the pages that previously held their artist information have a small message that state that Sony pulled their artists due to a conflict over pricing.

      The record companies should check with Michael Eisner before they fuck this up badly. You do not renege from a deal with Steve Jobs, and you do not double-cross him at the deal table. Pixar SAVED Disney to a large extent. With the ABC albatross around the neck during the 90s, the only thing Disney made massive revenues from were the box office hits conceived, created, and executed by Pixar.

      When negotiating with Jobs beyond the initial five-picture deal, Disney then tried to play cheap. Pixar walked. Disney is now having to learn how to build Pixar-caliber films all by themselves and they're finding that it's, ah, hard.

      The record companies had better take a lesson from this; if it's just their own stupidity or some other forces causing them to draw a piston on their own foot, they'd better watch it - building a successful online music store isn't easy, and it won't be profitable for them, as selling music through iTMS currently is.

    4. Re:Here's what Apple needs to do... by Anonymous Coward · · Score: 0

      "Jobs has a lot of power here - iTunes is the number one place to get digital music. I hope he realizes it."

      Of course he does, he's the Jobsfather.

    5. Re:Here's what Apple needs to do... by Anonymous Coward · · Score: 0

      They seem to think they're still in charge - Apple should show them otherwise.

      You may be overstating the case. The fact is, an iPod is pretty useless without music on it, whereas I play music all the time and I don't even own an iPod. If one recording company abandoned iTMS, then it's a pretty straightforward negotiation, but if the RIAA stays together as a cartel, they have a tremendous amount of leverage. Basically, if the RIAA cuts off Apple as a whole, iTMS carries only a handful of independant artists and dies a very quick death. Whereas without iTMS, the recording companies can only sell to radio, movie soundtracks, sporting events, and to the consumer via CDs and other online services.

      Then again, if they can't get their songs through iTMS, people will still buy their iPod and just go back to downloading illegally. I think Apple would get hurt more by a breakup with the RIAA, but public opinion would definately go with Apple.

    6. Re:Here's what Apple needs to do... by Zhe+Mappel · · Score: 1
      They seem to think they're still in charge - Apple should show them otherwise. The first record company to pull out of iTunes should be made an example of.

      That's a nice revenge fantasy, but it misunderstands who has the power. Jobs cut a deal with the devil. Now he's the recordos' bitch: if they walk, he doesn't have anything to vend. Empty iTMS makes Steve a sad, sad honcho.

      The uncertain factor in this problem is the iPod. How well will it do without iTMS? Very well, for awhile, but Jobs knows how fickle and fear-driven a beast is the American consumer (*cough* SUVs *cough*). If told over and over that the music industry is beating a trail from iTMS, Joe Shopper will look at other products.

      For the bad guys at the record companies, wrenching control back from Jobs means taking on both iTMS and the iPod. They can desert the store. What can they do to topple iPod, which will more and more come to seem the embodiment of their thwarted desires? Do not underestimate the scum of the earth.

    7. Re:Here's what Apple needs to do... by Fulcrum+of+Evil · · Score: 1

      The fact is, an iPod is pretty useless without music on it, whereas I play music all the time and I don't even own an iPod.

      I use an Ipod, and I've bought a grand total of 2 (two) songs from itms. Where do I get all my tunes? Well, there's the small matter of 2 roadcases full of CDs.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    8. Re:Here's what Apple needs to do... by ScrewMaster · · Score: 1

      Well, the big problem with this whole iTMS/RIAA thing is that Jobs made a deal with the Devil. That usually results in somebody getting burned.

      --
      The higher the technology, the sharper that two-edged sword.
    9. Re:Here's what Apple needs to do... by thoth · · Score: 1
      building a successful online music store isn't easy


      I agree, but I wonder how bad Microsoft would jump at the chance to pick up any record companies that walk from Apple. I'm sure Microsoft would be willing to pour money into building an online music store to push WMA format music. Hell, they already sink all kinds of money into lots of other ventures.

      Of course, this would piss off Microsoft's partners who run music stores, but we're talking about Microsoft, they'd screw business partners in a heartbeat if it advances their own interests.

    10. Re:Here's what Apple needs to do... by FonzCam · · Score: 1

      If iTMS has no content then all Apple need to do is license playforsure and update their iPods and iTunes and make a deal with a 3rd party music store to sell music in iTunes, sure they will have lost the iTMS business but people would keep buying iPods.

    11. Re:Here's what Apple needs to do... by jcr · · Score: 1

      I use an Ipod, and I've bought a grand total of 2 (two) songs from itms.

      I think it's also worth pointing out that the iPod was a runaway hit product before the iTMS opened, and it still sells better than its competition even in countries that don't have an iTunes store.

      If the record companies bugger up the iTMS, the iPod will still be the top music player. All they'll do is piss away hundreds of millions in revenue.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    12. Re:Here's what Apple needs to do... by arminw · · Score: 1

      .....If told over and over that the music industry is beating a trail from iTMS, Joe Shopper will look at other products......

      What percentage of music on the average ipod is from the iTMS? In my case it is maybe 2%. The rest is from my CD collection and after that from CDs of friends and Internet radio recordings. If the music content of most ipods is distributed somewhat like mine, then the pulling out of the greedy recording companies from the iTMS shouldn't affect iPod sales all that much. Steve is right by saying that copyright infringement downloading will supply much of the music that customers can no longer legally buy. The RIAAA may have to hire anonther 10,000 or more lawyers to sue 13 year old children and their Grandmothers.

      --
      All theory is gray
    13. Re:Here's what Apple needs to do... by Shelled · · Score: 1

      Apple should just start a music label and sign artists. A natural affinity between the two public images.

    14. Re:Here's what Apple needs to do... by henni16 · · Score: 1

      everytime a customer tries to do a search for one of their artists or songs (like Switchfoot for instance), have a big, HUGE message for the customer about how Sony wants to charge more than anyone else does

      I would suggest to enhance those messages by adding something like:
      "as you can't buy artist A's music at the moment, you might want to listen to these samples of artist B, C and D who make somewhat similar music.."

    15. Re:Here's what Apple needs to do... by Anonymous Coward · · Score: 0

      it's been possible to buy music online from other vendors for some time (napster, etc.). the point is that people want to listen to music... on their ipods. it doesn't matter if MS wants to take up the business unless it can be played on ipods, and if it can then apple doesn't care.

    16. Re:Here's what Apple needs to do... by CptNerd · · Score: 1

      Thing is, the record industry Devil may find out they made a deal with Cthulu... :-)

      --
      By the taping of my glasses, something geeky this way passes
    17. Re:Here's what Apple needs to do... by voorko02 · · Score: 1

      I've often wondered if the music industry keeps pushing Apple, what's stopping apple from going around the recording industry and negotiation with the artists individually. They already have their distribution model in place, why wouldn't they actively solict bands to break from their recording contracts and release only on-line through iTunes. Granted the artists would probably sell less, but I would imagine their cut would be better (don't artists see only a fraction of the profits of cds? I thought they made most of their money touring).

  82. Exactly by sterno · · Score: 4, Insightful

    ITunes is doing a lot to keep the money rolling in. While they may not make as much per track I guarantee that the labels are overall selling more music per listener through ITunes than they do through physical CD's. It's much better suited to impulse buys and it's less noticeable when you buy a lot of music because the bill doesn't show up til the end of the month.

    ITunes provides a viable way to get music quickly the moment you want it and it gives you a way to do it that insures the music industry gets paid. If they cut off the air supply to Itunes, all of that file swapping that happened before is going to go up exponentially. So rather than diverting those users back to physical CD's, they will simply lose them as customers all together.

    Frankly if Apple's smart they could probably play such a stand off against the labels quite well. Think about the average person's perception of IPod, ITunes and Apple versus their perception of the average music label. Apple can go direct to artists and bypass labels all together. Sure a lot of artists will have contracts that keep them locked into the existing labels, but with people already hooked into ITunes it will be easier to convert people to newer less well known arists.

    So please labels, make a stand so we can finally flush you.

    --
    This sig has been temporarily disconnected or is no longer in service
    1. Re:Exactly by happyfrogcow · · Score: 1

      And record labels themselves sow the seeds of Apple's own music recording label. Oh the looks on their faces :)

    2. Re:Exactly by mick_S3 · · Score: 1

      Good Point. They have a distribution channel, and they know how to market a product. That would be a very interesting indeed.

      --
      A gin in the hand is worth two in the bottle.
    3. Re:Exactly by MrNally · · Score: 3, Funny

      > If they cut off the air supply to Itunes ...

      Frankly I'd support it if the music execs cut Air Supply out of iTunes.

    4. Re:Exactly by BrGaribaldi · · Score: 1

      You mentioned contracts locking artists to specific record companies. Many of those contracts aren't set up to prevent music only sold over the internet. They Might Be Giants released songs only over the internet when they were upset with their record company. That way they aren't violating their contract but at the same time they were getting music that they wanted to make out to their fans. An artist could record with Apple, release a bunch of songs but never actually sell an "album". That way they never violate their contract.

    5. Re:Exactly by vonFinkelstien · · Score: 1
      What do you mean the bill doesn't show up until the end of the month?

      iTunes MS deducts purchases a couple of days later off of my VISA debit/bank card. ;-)

      [Yes, I know what you're talking about. I'm just pointing out one other type of iTMS purchase alternative to CCs.]

    6. Re:Exactly by tricorn · · Score: 1

      Apple's revenue in 2004 from the iTMS was somewhere in the range of $200M. Of that, about $190M apparently goes to the labels. CD sales in 2004 were about $11,446M, so Apple represents about 1.7%. TOTAL download sales were about 2% (by album, assuming 10 tracks/album) of the 666 million albums sold. So no, they're not going to lose a lot of money by pulling out of iTMS. However, it IS free money, and the bad publicity will hurt them.

  83. Re:The music industry is stupid enough to do this. by Anonymous Coward · · Score: 0

    If slashdot didn't post the story at least twice, then it probably isn't true.

    That's how I fine tuned my bullshit detector.

  84. Apple's Contracts with Record Labels by OzPhIsH · · Score: 3, Interesting

    How exactly is the relationship between Apple and the large record companies defined? Surly there is some kind of contract in which Apple pays X% of of an iTunes sale to the song's owning record label. If they record labels back out, won't it result in some sort of contractual breach? (Anyone who knows more, please reply)

    I think the record companies (unsurprisingly) underestimated the the kind of sales that the iTMS would do. Now perhaps they're finally waking up to the reality of the situtation, that this is how people WANT to purchase and enjoy their music. I mean, how long ago was the old Napster? More than 5 years. FIVE YEARS. After all the bitching and moaning, the labels STILL don't have their own digitial distribution mechanisms. It just shows that the labels were and are still sooooo dimwitted and clueless. And now, "oh wait look, Apple is making money on this online store that we should have made ourselves 5 years ago to react to market demand. Apple should give us more money. Wahhhhh!" Well I say FUCK YOU record labels. You did this to yourself. You underestimated the market, your customers, the technology, and EVERY OTHER ASPECT of running your businesses. You signed deals with Apple letting them sell your music for 99 cents a track. It must have been a good deal then, right? Why else would you have signed to such a deal? If you're unhappy with the terms now, thats your own fault.

    --

    "To lead the people, you must walk behind them"

    1. Re:Apple's Contracts with Record Labels by n8_f · · Score: 1

      Uhh, the contract has/is expiring.

  85. Boycott by jessecurry · · Score: 1

    I will boycott whichever record companies decide to pull the plug on apple for not adopting variable pricing. There is plenty of music to go around, I don't need to follow the current radio trend.
    And if the record companies want to make it that much trouble for me to purchase a song I'll just head back to P2P.

    --
    Those who know, do not speak. Those who speak, do not know. ~Lao Tzu
  86. Re:The music industry is stupid enough to do this. by Chainsaw · · Score: 1

    What, can't they say fuck like ordinary people?

    --
    War is one of the most horrible things a human can be exposed to. And one of the worlds largest industries.
  87. Good thing that there are lawyers by Enrique1218 · · Score: 1

    in the world. I personally like to see the death match between Apple lawyers and the RIAA. In any rate, now that Apple has build the mountain of gold in the form of the iPod and iTunes. The music industry wants to exert control with the same brilliant management that led to piracy in the first place. Competitors are now throwing in the towel and are metamorphing into patent leeches. In the end, if Apples lawyers fail, they may succeed in bringing everything down and leaving us with another Microsoft monopoly and cheap commodity mp3 market.

    --
    You don't have to be smart to use a Mac, you just have to be smart enough to buy one
  88. Re:The music industry is stupid enough to do this. by ZachPruckowski · · Score: 1

    Well said. Using iTunes is a whole lot easier and safer than filesharing (I have a friend who has done it). I mean, I don't mind 99 cents a song because I don't buy a thousand songs, I buy like 4-5 a week.

    I don't think the music industry is thinking this all the way through. They don't seem to have realized that the CD is basically dead. We had the SanDisk DRM flash-card article on here two or three days ago. It seems to me that that is an attempt at reviving the CD. Most music buyers have realized that bands tend to only have 2-3 songs per CD that are worth listening too. If a CD was the price of 4-5 iTunes songs, I still wouldn't buy the CD unless I wanted 4-5 of the songs, so it seems to me that raising the price of iTunes won't sell more CDs.

    However, at $2-$3 for the good songs, many new people would be tempted to try filesharing, because the songs that will have the price increases will be the easiest ones to find on a sharing network, because they are the "popular" songs.

  89. Next stop: replacement by mugnyte · · Score: 1

    So why can't Apple simply license content from new/indie music sources? If apple funded a marketing site that let people podcast slightly-lower-quality new music, then giving folks a bunch of funky search capabilities (sounds like, reminds one of, from the makers of) they have a sweet engine to pump new music into their iPods.

      Shit, they should simply gather together local radio shows that debut music. I'd love to see a "what's new in [location]" podcast search.

      I know quite a few startups are trying this, but without the market share of Apple, the resources aren't going to be there to collect all this.

      Finally, they funnel the bands to the indie labels that are on their iPod preferred-vendor list, and voila, we're off to the races to skip the RIAA. Perhaps I'm missing something?

  90. Utter cack by Trapezium+Artist · · Score: 1

    Just who do these bozos think they are? My 30Gb iPod is stuffed to the gills with music, but not one track was downloaded from anywhere: every single one was ripped from CDs which I have bought over the past twenty years. These parasites have had my money once (and twice in many cases, since I bought many things on CD that I already had on LP) and I'll be buggered if they're going to get it again if and when I buy another iPod. It's enough to make me think thrice about buying anything else from them.

    The iPod phenomenon is not synonymous with downloaded music: it's the Walkman of the 21st century, dammit, and how the music gets on there is entirely secondary. Did the music cartel get money from Sony for every Walkman sold?

  91. Heres why, labels are making less per record. by Anonymous Coward · · Score: 0

    The fatcats are pissed because they're still using an old model for handling the sucess of an album. Lets say they were making 6 dollars per album selling in retail (I'm not sure how it all works out), but on itunes, users are only buying 3 songs off that album, that translates into less money per album. We're in a diverse time for music creation. The record labels aren't ready to switch to per song contracts for bands, and they don't know how to fit per song downloads into their grand scheme, so they want to price fix songs to make as much money "per album" online as in retail.

    Change has to come from outside, from a new label, where per-song contracts can create rock stars.

  92. Big mistake by HangingChad · · Score: 2, Interesting
    I'd be willing to bet Apple to could survive and thrive as a music producer AND distributor. It might take a while, but if Apple started cutting new groups a good deal for hosting their music, they could attract a lot of talent away from the big labels.

    If that's what Apple is thinking, and I'd love to see them do that, they'll call their bluff on the threat.

    This is great.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  93. simplified economic theory..... by apl73 · · Score: 2

    bears make money and bulls make money, but pigs only make shit.....

  94. Easily circumvented by Anonymous Coward · · Score: 0
    know it would be contrary to their agreements with Apple Records


    This isn't really a problem--it just means they can't become a music distributer under the Apple name. Nothing prevents them from forming a shell company ("Appleskin"?) and promoting it though iTMS. I don't think that would create any serious brand confusion, especially if they make it clear why it's being done.

  95. I have an ipod and have never downloaded one tune. by Wild_dog! · · Score: 1

    I haven't even downloaded the free songs. All I want it for is to listen to my music. If I get another CD ... I pick the songs I want off of it and make another compilation.

    People never buy the hardware so they can download music. They may find that after they have the hardware they can do things they hadn't really thought about ... like buy a song or 2 to add to their personal compilations and such.

    btw... I rarely buy a cd at the store. I get then after seeing the artist if I like them at a concert or I buy from the artist's website if I like what they sound like.

    Sometimes I use amazon to listen to more tracks....

  96. Re:The music industry is stupid enough to do this. by Anonymous Coward · · Score: 0

    Sorry for the anonymous coward, but I don't need a public record of this.

    I saw *screw* the music industry. I love my iPod, and I love iTunes. Most of my music is older, cause the RIAA can't seem to put out a decent record since the early 90s. The new stuff I've bought has been via iTunes. Sure, there are alternatives, but they can kiss my lily white butt if they expect me to use another more inconvenient service. Besides, much of the music I get now, I record on my computer myself off free and legal internet radio "waves". I have no problem going back to file sharing for the occasional tune that pops into my head that's not in my collection already. I'd rather be honest, but if they take away the most convenient method all in the name of profiteering, I'd rather take the risk and P2P it.

  97. Re:The music industry is stupid enough to do this. by Megane · · Score: 1

    They're not just stupid, they're stuck on stupid.

    --
    #naabhaprzrag, #sverubfr-000, #agi-fcbafberq, negvpyr[pynff*=' negvpyr-ary-'] { qvfcynl: abar !vzcbegnag; }
  98. FOOLS by Anonymous Coward · · Score: 0

    As a member of the Internet Elite, I get all my music through bittorrent and forgo such arbitrary things such as 'legality'.

    It's so obvious. Why are all of you so stupid.

  99. Re:The music industry is stupid enough to do this. by Hellasboy · · Score: 1

    haha, oops... im so used to forums/sites that censor out cuss words... a tragedy that censoring has affected what i type like that.

    fuck it

    --

    "Tread softly because you tread on my dreams"
  100. The record industry is insane by selil · · Score: 1

    More fodder for the you can be an idiot and still be an executive files. Music industry ignorance is perfect.

    --
    --- Location Unknown
  101. Re:I think Apple needs to do a "week without iTune by TCQuad · · Score: 1

    Better yet, let's see Steve Jobs say, okay, you want variable pricing, we'll hook up with Magnatunes and CDBaby and sell their tracks for 50-75 cents, or something.

    I've always wondered why iTunes Music Store never did that. Or, even better, since they've got music files with ratings, use an iRate Radio type of program integrated into iTunes. Get tons of free music that you're predicted to like. The only reason I stopped using iRate radio was that the poor player wasn't iTunes integrated (and difficult to get files integrated) and a lot of the files had ambiguous file names ("Oooh! Unknown Artist, 'song 3'! This track rocks!"), something I'm sure Apple could fix.

  102. Recording Industry, not "Music Industry" by VP · · Score: 2, Insightful

    I strongly believe that the way things are presented, including the exact words used, has a great impact on our perceptions. George Orwell built on that with "Newspeak" in his "1984". We are seeing this every day to a greater and greater extent from politicians and people in power (PATRIOT act, for example).

    This is why I think it is very important to pay attention to the words used. In this particular case, the "music industry" implies that musicians, composers, authors are all lumped together. We need to distinguish between the greedy b****rds who run the music publishing cartel from the rest of the "music industry".

    Similarly, we should expand DRM to "Digital Restrictions Management" because that is what it actually is.

    It may not make an immediate impact, but over time more and more people will understand what the opponents of DRM and RIAA have been trying to say for a long time now. Education is the most effective weapon against oppression, and using the right words is one part of educating those who "don't get it".

  103. Record Industry still Entitled by Anonymous Coward · · Score: 0

    In fact all the evidence points to the opposite: that iPod sales have driven demand for downloads.

    So what. There is a pool of money coming in related to the combination of music sales and iPods. It does not really matter which is driving the growth of that pool. If it is true that iPod sales are driving the sale of more music, does that give Apple some kind of "upper hand" on the music people? I think not. AAC+FairPlay is a double edged sword. The music companies can, with the stroke of a pen, prohibit their content from being encoded in that proprietary scheme by Apple. Likewise, Apple can refuse to sell music from specific labels, which will increase profits to other labels (and independents). Unless these bastards all learn to work together and stop trying to get leverage over each other, Microsoft will just win (again) by default. If you care at all about this issue, then you should stop pissing and moaning on /. about Microsoft and the record industry and help shutdown all of the p2p filesharing networks that compete with iTMS. Oh wait, that means you have to spend money and this is /. --nevermind, go back to pissing and moaning (and steeling)...

  104. classic power struggle by circletimessquare · · Score: 1

    who controls what?

    in the ongoing struggle between those who control the media, and those who control the technology that plays the media, in a world where there simply isn't ANY media, the tech guys win

    the point is that disruptive technologies: p2p/ the internet, has stolen power from the traditional music distributors

    permanently

    but the execs at the music distributors are in denial over the fact

    steve jobs simply represents a compromise between the old way of doing things and the new, and so has realized massive profits for that

    but the cranky old men in the executive chairs who are fighting him on that are used to the days of LPs and analog cassettes and CDs

    they are still thinking in that model

    so while in their wrath and their denial they may bring down steve jobs, they aren't going to revive the distribution model they are used to

    they are just going to drive online music exchange underground again, and reap no profits, rather than reap some profits, simply because they don't want to at steve jobs as their new boss

    that angers them

    unfortunately for them, steve jobs is their savior, not their enemy... their position in the new online world is permanently junior underboss, or boss of nothing

    and some of them would rather be boss of nothing than report to the tech head

    they are just too much in denial of the death of their business model to see that

    it's emotional

    but unfortunately for them, tech heads win no matter what in the onine world of music distribution

    because there is no media to control

    only technology

    sorry music execs

    go out kicking and screaming if you must, but you are simply obsolete no matter what you do

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:classic power struggle by Deadguy2322 · · Score: 0

      Capitalization and punctuation instead of line breaks would make your post readable. You may have had a point, but I could not be bothered to read past the fourth line.

      --
      Check out my foes list to see who is so retarded that they can't use the signature line!!!
  105. Apple Corps v. Apple Comps by abb3w · · Score: 1
    In fact, they didn't expect it to be profitable at all - but now it commands a sizable share of Apple's quarterly revenue.

    Of course, that could be inconvenient, when the Beatles Apple Corps v. Apple Computer lawsuit (version 3.0) over Apple Music goes to trial in British court next March. "Um, yeah, we're now in the music business, and we signed a consent agreement saying we wouldn't get into the music business, and we're making money at it, but we thought we'd lose money running the ITMS...."

    --
    //Information does not want to be free; it wants to breed.
  106. Oh My God by LarchOye · · Score: 1

    It's official, the music industry IS run by the STUPIDEST people possible. (Obviously anyone who is STILL investing in the music industry is completely retarded) It's one thing to sue potential customers, another not to have capitalized on compressed music formats in the first place (10 years ago)... But to sever your only remaining tie to revenue?!! Seriously. Everyone stop buying music already, then maybe they'll all just go away and we won't have to listen to those babies cry anymore.

  107. Were I Steve Jobs by Todd+Knarr · · Score: 5, Interesting

    Were I Jobs or Apple, I'd pull a preemptive strike. Announce "Since Warner Records doesn't feel the agreement with iTMS is fair, we've decided to resolve the problem. All Warner titles have been removed from iTMS and Warner Records has been released from the agreement. They're now free to market their music through a service whose pricing is more in line with their desired price points.". Then sit back and watch Warner scream as their sales plummet.

    1. Re:Were I Steve Jobs by cnerd2025 · · Score: 1

      I'd lower the price of all Warner Records music cheaper, say 50 cents per song and maybe 5 bucks an album.

    2. Re:Were I Steve Jobs by X_Bones · · Score: 2, Insightful

      Why exactly would Warner's sales go down the toilet? Music isn't a commodity market; there's only one supplier for the desired product. If someone wants to purchase music created by an artist signed to one of Warner's labels, they have to go through Warner's distribution channels. Let's say Warner sells their music through the Warner Music Store (tm) for a buck fifty a song. The number of units sold may go down due to the higher price point and the slightly more difficult process of buying Warner music (i.e., not via iTMS like everyone else), but their total profit would stay about the same as before.

    3. Re:Were I Steve Jobs by Original+Replica · · Score: 1

      This will only work if the public backs iTMS's stand. That might require thought,foresight,willpower,or something else that requires an attention span.

      --
      We are all just people.
    4. Re:Were I Steve Jobs by Todd+Knarr · · Score: 2, Interesting

      Well, look at it this way: the iPod-owning public wants to buy from iTMS, and they've got every label except Warner to choose from there. Is Warner's stuff really so compelling that they'll go to the effort of looking elsewhere just to get it? On-line distribution's the only channel that's actually showing improving sales, and iTMS is the 600lb gorilla in that area.

    5. Re:Were I Steve Jobs by Todd+Knarr · · Score: 1

      The public doesn't have to back iTMS's stand. All that's needed is for Warner's offerings to not be so compelling compared to all the other labels to convince buyers to put out effort to set up an account somewhere other than iTMS and go through the convolutions needed to move WMA onto the iPod (I doubt Warner would sell their stuff as plain, unprotected MP3s, and Apple obviously wouldn't license their own DRM to Warner to set up competition). Given the state of CD and other music sales, I frankly don't think Warner's music's compelling enough to get people to put forth that kind of effort.

    6. Re:Were I Steve Jobs by Anonymous Coward · · Score: 0

      Try to set up iTunes in Australia, then SUE SUE and SUE.
      Australia has harsh Trade practices act anti-collusion/conspiracy laws, and has lately allowed generous and sweeping anton pillar orders.
      RIAA has been trying to set up some itunes lookalikes, in .au, but has been complaining the regulatory framework, and refusal to supply, and anti-discrimatory pricing legislation is hindering this (cannot imagine why).

    7. Re:Were I Steve Jobs by Have+Blue · · Score: 2, Insightful

      Their sales won't plummet because the ITMS is tiny compared to the CD business. The RIAA is frightened by the possibility of that changing in the future.

    8. Re:Were I Steve Jobs by Anonymous Coward · · Score: 0

      Music is a form of entertainment. If warner's actions make it more difficult to obtain entertainment from them, people will get their entertainment in other places. If warner was dumped from the itms they would see a profit slump, that's almost a guarantee.

  108. Won't do anything by Sycraft-fu · · Score: 1

    They have, on more than one occasion, been convicted of price fixing. Hasn't stopped them yet. The problem is, probably because of all the lobbiests and money being handed to congress, there is an unwillingnedd to really drop the hammer on them.

  109. Textbook case by overshoot · · Score: 2, Interesting
    Hmmm -- let's see. An industry is dominated by five (5) big companies, who all belong to a trade association. Said trade association has already been been caught, fined, etc. for price fixing.

    Now "the Association" approaches a major customer of said companies and attempts to dictate an increase in prices with the threat of all of its members shutting off said customer in concert.

    Please, please, PLEASE do it, RIAA. I'm begging you, don't chicken out. Jobs and Apple have lawyers and aren't afraid to use them, and this one might even qualify for Section One treatment.

    --
    Lacking <sarcasm> tags, /. substitutes moderation as "Troll."
  110. There is a name for this by whogben · · Score: 3, Interesting

    I think the name for this kind of request is "Protection Money." The record companies are used to being the biggest kid on the block, they are used to winning unbalanced cases with hoards of lawyers, if the gloves really come off in this fight Apple will be more than they can handle. Steve has already publicly called them greedy - but what if built into the iTunes music store when you went to buy music was a brief explanation of why people can't buy their music, and a signup page for a CD sales boycott? How about a link to lime-wire? What if through iTunes, I can start a musician account with Apple, upload my music to them and make 15 cents a download? The record companies need to realize just how much backlash there could be.

    1. Re:There is a name for this by appleuser123456789 · · Score: 1

      I completely agree with whogben. I know that the music companies want more money, but they are getting enough as it is. If a song is popular, it should not be more expensive, as more people will download it and they will make more money. If they go an try to change the price of my songs to anything over $00.99 there is no way I will buy them when they could be obtained for free else where. I buy my music to support the artists, not the record labels. They need to stop complaining and realize that the price is right! If they raise the price, they will lose money as I will not pay ANYTHING.

    2. Re:There is a name for this by savage1881 · · Score: 1

      You're right- The record companies just dont realize how things work in the digital era. The iTunes music store is not just another sales venue-- it's backed by a gutsy, competitive company. Apple has assets of $7 Billion lying around (http://www.hoovers.com/apple-computer/--ID__12644 ,period__A--/free-co-fin-balance.xhtml), which dwarfs Warner's $1.5 Billion (http://www.hoovers.com/warner-music/--ID__103153, period__A--/free-co-fin-balance.xhtml). Apple has zero debt, Warner has $1.8 Billion debt. You get the picture. Warner has a market cap of $2.9 Billion-- Apple could buy them on the open market and pay CASH! But who would want to buy a company that goes around burning bridges?

    3. Re:There is a name for this by klang · · Score: 1

      What if through iTunes, I can start a musician account with Apple, upload my music to them and make 15 cents a download?

      This is not so what if as it seems. Podcast it! For now, you would have to have a tip jar on your own site to make any money, but it IS actually possible to get on iTunes and get paid.
      Keith and the Girl promotes a DVD and a CD with stand-up. Scott Sigler sells his book on amazon after having podcasted the whole thing for free (ok, he does have a tip jar).

  111. Stop legally down our music! by sxmjmae · · Score: 1

    Lets see if I have this right...

    1) Stop people from using a easy, likeable, means to legally buy music.
    2) Force people to seek other sources of music... most likely illegally.
    3) ????
    4) Profit

    --
    My Sig indicates the end of the comment I posted.
  112. illegal by a11 · · Score: 1, Funny

    hmmm... typical of the dumbass /. posters, everyone here seems to be discussing who is making money for whom, and how dumb the music industry is, and how small their penis was before they took the pills. all completely irrelevant

    It is absolutely, positively, w/o a doubt illegal for a record company to tell apple "share in ipod sales or I will not allow you to sell my music." no company can single out a reseller like that. that's why we do not have pure capitalism, but one with governmental controls. it is also illegal for them to tell apple how much to charge its customers for the songs. they can only charge Apple more for the songs.

    oh, to maintain my recently bad karma - everyone who read this sucks donkey balls and is ugly and is a loser and la la la la la my dick is so big and i am super awesome and your butt smells and you like to smell your own butt. there.

  113. Retaliation..... by King_TJ · · Score: 1

    Although I'm not too sure it's something even Steve Jobs would consider (given the fact he's C.E.O. of Pixar, and *might* view this as a conflict of interests), it seems like Apple is in a great position to retaliate if it came down to it.

    Simply change the iTunes music store to a "portal" to independent artists and music, and start a program allowing anyone to sell their independent music on the store, similar to the way people post auctions on eBay today. Perhaps offer the option for any artist to submit a free selection from whatever uploaded album of songs they want to sell, which would be put into "rotation" as the "free download of the week" - helping them promote themselves that way if they wish.

    At the same time, maybe even incorporate a BitTorrent style feature for users to share any other music they happen to wish to share with fellow iTunes users for free, and make sure IPs are anonymized as part of the functionality. Not saying they'd actively promote illegal music sharing from the other commercial entities, but you know .... make it easy to do, while pointing out the legal uses of the new feature at the same time.

  114. Re:The music industry is stupid enough to do this. by nine-times · · Score: 1
    If they close iTunes, iPod users will just rip their own music (and share it) leaving 0 revenue.

    Not only that, but cheap and convenient downloadable music has probably diminished piracy (which the RIAA is all freaked out about). So, in return for this boon for the RIAA, they threaten to pull out of and shut down the big wildly successful online music distributer.

    Hmmm... it's almost as if they *want* online music distribution to fail.

  115. Isn't Bronfman descended from Bootleggers by putko · · Score: 2, Informative

    If I recall correctly, Bronfman (the name refers to making brandy, in German -- but Bronfman is as kosher as gefilte fish), is from a long line of alcohol makers. They supposedly made their fortune dealing in liquor illegally during Prohibition by making a huge fraction of the illegal alcohol sold in the US.

    His daddy was in essence a kosher Pablo Escobar.

    Little Bronfy himself presided over the shameful shakedown of Swiss banks in the 90s.

    It doesn't surprise me at all that Little Bronfy vants his money.

    Here are some references:

    http://www.forward.com/issues/2002/02.06.07/news6. html
    http://www.davidicke.net/tellthetruth/reststory/br onfmanking.html
    http://www.blacksandjews.com/bronfman.html

    --
    http://www.thebricktestament.com/the_law/when_to_s tone_your_children/dt21_18a.html
  116. Payback's a bitch by geekee · · Score: 1

    Apple deserves it for screwing over companies like Real with their proprietary DRM scheme. Apparently, it isn't so fun when they're on the receiving end of getting screwed by a monopoly.

    --
    Vote for Pedro
  117. So, this is actually kinda funny.... by prof_tc · · Score: 1

    If you think about it. Apple has this huge profit from iTunes. The record companies are getting some large percentage of it.

    Threatening to cut Apple off is like threatening to shoot yourself in the foot unless someone puts down their gun.

    Jobs is probably sitting in his home/office, laughing.

    1. Re:So, this is actually kinda funny.... by klang · · Score: 1

      The lables get a $.79 of off every song sold on iTunes, which only breaks even for Apple. iPod sales on the other hand is another story. For the record lables to want a cut of that profit is equivalent to them wanting a cut in CD player sales .. (In some ways, Sony has a sensible setup)

  118. Re:The music industry is stupid enough to do this. by Soul-Burn666 · · Score: 4, Insightful

    The RIAA isn't supposed to represent the artists. It represents the Recording Industry Association of America, i.e the record companies, i.e the executives. They don't give a fuck about the artists.

    (mods, go away, use your points where they're needed.)

    --
    ^_^
  119. Constrained Flash Memory Supply Favors Apple by heff66 · · Score: 1
    In the little pissing match that seems to have developed in the last few weeks, Apple has a major advantage when dealing with the labels.

    Apple has managed to snap up most of the available flash memory being produced by Samsung and the other manufacturers. They have also arranged sweetheart pricing deals with the same manufacturers. This leaves almost no flash memory left in the supply chain for other portable player makers to use in their units. And even if they can get them, the prices Apple is paying for their supply allows them to price their products lower than the competition. If the labels want ANY kind of digital music sales (which remains to be seen) they'll have to work with Apple somehow.

    Read this article for more details on why Apple will remain in the driver's seat when it comes to iTunes pricing. Here's a key excerpt:

    Having secured a large chunk of the supply of flash memory from Samsung and Toshiba and a price break from Samsung, Apple is going to constrain the supply for flash chips. That's going to make it difficult for competitors making flash-memory-based players that work with other music services to get their products on the shelves this holiday season.

    How bad will it be for Apple's rivals in the music-player business? A research report by WR Hambrecht says manufacturers of flash memory will be experiencing an uncomfortably tight supply environment this quarter and into the first quarter of 2006. Samsung and Toshiba both have their second- and third-tier customers on allocation -- which means lots of smaller companies will be told to get in line and wait for their flash chips.

    And it may only get worse for those companies. Analysts at UBS Investment Research suggest that Apple could get an even bigger price break on flash chips from Samsung, and Toshiba may give it favorable pricing as well, making it even tougher for others to compete on price and amid constrained supplies. Rumors are also buzzing that Apple may soon tie up even more flash supplies by cutting a deal with Hynix Semiconductor.

  120. analogies by TheHawke · · Score: 1

    Y'all heard of Apples and Oranges, eh?

    Here ya go folks.. Apples and Lemons.

    ^.^

    --
    First rule of holes; When in one, stop digging.
  121. So when are the Monopoly hearings... by Anonymous Coward · · Score: 0

    So when are the hearings to break up the music industry's monopoly going to take place? Ahh, that's right, the government doesn't have the balls to break up such a big money maker. They're too busy helping to track down those evil movie and music pirates who are the downfall of our society... right... downloaders, not those scum sucking every last penny they possibly can out of the economy...

    /rant off

  122. music industry extortion = DRMless Apples? by StandardDeviant · · Score: 1

    If the music industry forces Apple to close down iTMS via extortionate pricing, what incentive is left for Apple to maintain DRM controls in their music players or iTunes software? If all apple is doing is selling hardware and software to enable their customers to listen to music, but have no investment in selling music itself, they gain competitive advantage by removing barriers to their customer's enjoyment of music. Hello, alternate formats, open music transfer via hardware devices, the return of streaming from iTunes to all and sundry, and goodbye any DRM. Imagine if iTMS was reborn as a free collaborative service where registered Apple music storage devices users could trade music as a giant "fuck you!" to the music industry. You know Jobs has the personality to be tempted by something like that...

    *shrug* I love my PowerBook, but I haven't bought into the whole iTunes/iTMS/iPod shebang precisely because I don't feel like supporting the music industry in any fashion or dealing with the DRM shit that Apple has to maintain to please them. The music industry pissing off Apple sufficiently to break the relationship sounds, well, kind of fine to me. If they (the music suits) want to cut off their nose to spite their face, then I'll buy a ticket to watch.

  123. Broken Record (Company) by WndrBr3d · · Score: 1

    Not to sound like a broken record, but I think Mr. Nash's comments are only a bluff to try to direct some negative press towards Apple and iTunes.

    His whole argument doesn't make any sense when you have services like Napster, Rhapsody and Yahoo Music offering -FLAT RATE- monthly subscriptions for UNLIMITED DOWNLOADS. If a user downloads enough songs, the average cost per song could EASILY drop below $0.05 each.

    I think record companies are seeing the cash flow POTENTIAL of raising the price of iTunes songs, by even $0.10, could results in MILLIONS of dollars yearly in increased earnings.

    My hat goes off to Steve Jobbs and Apple for not sticking it to their users just to make a buck.

  124. Music Industry - Stealing=bad; Extortion=good by moxley · · Score: 3, Funny

    I guess they don't consider extortion by big business stealing

    I guess to them stealing is only stealing when it's an individual (usually a minor) who they can then threaten with a lawsuit

    (Isn't that extortion also?,)

  125. the name is Apple Music by MBAS · · Score: 1

    apple will form it's own music company(industry).
    apple has it all, software, hardware, platform.
    the old music industry will crash on it's own term.

  126. Its my pledge by Anonymous Coward · · Score: 0

    From the past 1 year I have stopped downloading ileagal music. Seems like I have to resume it againg. The moment they increase the price of a song in ITunes, I pledge that I will never ever legitemately buy a song and I will find new ways to download a song. Rightnow they are targeting on torrents and emule. So, the best bet is downlooad from file hoasting sites. The big stealer

  127. A lawyer working for Warner said this: by sgant · · Score: 5, Insightful

    Kenneth Hertz, partner at Goldring Hertz and Lichtenstein LLP, a law firm representing major recording industry artists said "What if Jobs says 39 cents or 29 cents per download - what then? The industry can say, OK we'll cut him of - very few people buy music from digital downloads... [Jobs] will figure out another model ... The industry got together and said 'We don't want another MTV'. Well, now we've got another MTV, in Apple. And we have to deal with it."

    So, I have to ask...if very few people buy music from digital downloads according to this suit, then what the FUCK do these guys care what price Apple sells their music at? This is greed. Pure greed. The recording industry is so used to making reams of cash without doing any of the actual work that they're lashing out when someone tries to take that away from them.

    And then to turn around and say they want a cut of the profits from the physical iPods themselves shows they have HUGE balls too. I mean, do they get a cut from every CD player sold that plays their music?

    Yes, I'd rather blatantly steal all the music from here to the end of my life then have to pay anything to the bastards that run these companies. I'm sorry to the artists but lets face it, they only see a 10th of the actual cash these companies are actually raking in.

    Or better yet, I won't even listen to music anymore. I'm so pissed off and disenchanted with the whole industry I'll just sit and listen to the birds outside my window...or laugh like a brook as it trips and falls over stones on it's way. Sorry, was channeling "Sound of Music" there....DAMN!

    --

    "Leo Fender was in a 'state of grace' when he designed the Stratocaster." -- Paul Reed Smith
    1. Re:A lawyer working for Warner said this: by Overly+Critical+Guy · · Score: 1, Interesting

      I wouldn't worry. iPod nanos are going to sell like hookers this Christmas. This is a lot of public snorting from a few labels that won't go anywhere, because Apple has the upper hand--they're the #1 music store and are surpassing even P2P networks in usage. Steve Jobs doesn't give a shit if Warner pulls out. Without Warner music on iTunes, iPods are still just gonna keep on sellin' while Warner loses cash to non-sales and piracy, especially when video-enabled iPods come out.

      This is just the game they play. Higher prices than .99 per song ain't gonna happen on Jobs' watch. Apple did focus studies that determined .99 was the sweet spot.

      --
      "Sufferin' succotash."
    2. Re:A lawyer working for Warner said this: by angelasmark · · Score: 2, Informative

      You ask if the labels of get a cut of every CD player they sell... In some cases (Sony) they do.. in other cases the labels actually get money from taxes on CDR sales... The IPod changes things signifigantly since the labels get no revenue from this..

    3. Re:A lawyer working for Warner said this: by User+956 · · Score: 4, Insightful

      So, I have to ask...if very few people buy music from digital downloads according to this suit, then what the FUCK do these guys care what price Apple sells their music at? This is greed. Pure greed.

      The only thing I can think is that these fuckwits heard the fable about the goose with the golden eggs and didn't get the moral of the story.

      --
      The theory of relativity doesn't work right in Arkansas.
    4. Re:A lawyer working for Warner said this: by Anonymous Coward · · Score: 1, Insightful

      OK, maybe I'm dense, here, but what do they mean, "they don't want another MTV"? As if MTV made them loose control of music market... I don't remember MTV pushing what *people* want to hear and going against the RIAA's will.

      Can anyone 'splain dis to me? Thanks. /ac

    5. Re:A lawyer working for Warner said this: by chumpboy · · Score: 2, Interesting

      Yes, I'd rather blatantly steal all the music from here to the end of my life then have to pay anything to the bastards that run these companies. I'm sorry to the artists but lets face it, they only see a 10th of the actual cash these companies are actually raking in.

      What an amazing statement! Amazing simply because it will resonate through the ears and hearts of music purchasers everywhere.

      I don't mind a company earning money. Hell, I enjoy it since it helps me pay the bills every two weeks. But greed so blatant and obvious is going to kill the greedy bastard in the end.

      Not sure if this will be the end of the music companies, but I think they are buying the shovel to dig their own grave.

      --
      I'm not prejudiced. I hate everyone equally.
    6. Re:A lawyer working for Warner said this: by tsm_sf · · Score: 5, Insightful

      Oh they got the moral, but for them it was "kill the goose and get the next egg faster."

      I have to totally agree with the GP. This will drive me back to p2p and the used record stores. Actually, you know what? Fuck this. I like stealing from corporations. I'm tired of trying to do the right thing when I see the wrong thing being rewarded on a macro level every day. How the hell did we get shamed into being "good citizens" by these bastards? It's like listening to Tony Soprano give a "crime doesn't pay" speech.

      --
      Literalism isn't a form of humor, it's you being irritating.
    7. Re:A lawyer working for Warner said this: by dnoyeb · · Score: 2, Funny

      I never did like that right foot. Good riddance.

    8. Re:A lawyer working for Warner said this: by Zasten · · Score: 1

      I think the record companies feel they are beholden to MTV since for many years a hit required heavy MTV play. No MTV, no hit.

    9. Re:A lawyer working for Warner said this: by Fear+the+Clam · · Score: 1

      I never really understood the point, myself. I've always been a big fan of used record (now CD) stores. The first record I ever bought was used. I'd be surprised if I actually paid, new, for more than a dozen albums in my life. In my world, the RIAA gets sweet fuck all no matter what they do.

    10. Re:A lawyer working for Warner said this: by jcr · · Score: 1

      surpassing even P2P networks in usage.

      I haven't heard this. As a shareholder, I certainly hope it's true, though. Where did you see the figures?

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    11. Re:A lawyer working for Warner said this: by Anonymous Coward · · Score: 0

      Hey, but if you equate "hits" with "sales", then isn't it like radio, i.e. no air play, no *sales*? So what makes MTV different from radio, then?

      (And from your answer, I'd gather that it is no longer the case. I wonder what happened and when...) /ac

    12. Re:A lawyer working for Warner said this: by Zasten · · Score: 1

      I'm only guessing, of course, but if I were a record company I would hate that I had to convince a single source (MTV) to play my music where in the past I had many radio stations (some in the same market) I could work with. My use of the past tense only indicates my sense that "the times they are a changin'" and that with independant "broadcasting" (read: podcasting) even MTV will start to lose its grip.

    13. Re:A lawyer working for Warner said this: by arose · · Score: 1

      But they still get money when I burn my data (or legal music downloads) to CD...

      --
      Analogies don't equal equalities, they are merely somewhat analogous.
    14. Re:A lawyer working for Warner said this: by rtb61 · · Score: 3, Informative
      Never argue greed with logic. Technically speaking apple via the ipod is now the song publisher. They are actually threatening the revenue of current RIAA members and in the future will undoubtably provide an alternate publishing point for independent artists as well as copyleft artists (the people that really believe in music as an art form to be shared, rather than as a profit centre). The current crop of RIAA members are fully aware of this and are now taking the initial steps to basically knock apple out of the music publishing business. Variable price point is about charging apple more than they charge other preffered manufacturers (RIAA members in long standing) and licencing on hardware is an extention on that policy.

      Most modern music is basically the same with some slight variations for marketing purposes (music development has always been based on the development of the supporting musical instrument technology). Even the rebellion aspect of music is over fifty years old (excluding of course any hint of rebelling against the publishers profits).

      Recorded music has always been and will always be "dead" music, when it is live and shared it comes to life as part of a shared community celebration, whatever that community may be (create your own music don't buy it because your are just buying advertising 3 minutes at a time).

      --
      Chaos - everything, everywhere, everywhen
    15. Re:A lawyer working for Warner said this: by mr_shifty · · Score: 5, Interesting

      Damn skippy.

      I pay on average $3-$8 for used CDs in "like new" condition, via Amazon.com.

      No low-quality downloads, no DRM, no overpriced songs I can't play where I want, on whatever device I want. No bullshit.

      Why in the world would I ever even consider paying a dollar per TRACK of the same music, only to have harsh restrictions placed on me as to where I can play it, and how many times I can copy it to other devices?

      Screw that. As long as I can still buy CDs used, that's the route I'll take. If iTunes Music Store goes the way of the dodo, I guess it won't bother me.

      Between you, me, and the dodo, though, the RIAA's dumber than a sack of hammers to let a potential cash cow like this die.

      Free money. For a product they already have. Being sold by someone giving them a cut. For something they otherwise wouldn't be selling at all.

      What collossally stupid people must they be, those in charge of the major labels. These are potentially the best years to get in on the ground floor of the internet music revolution, and here they are, trying to stamp it out and drive themselves out of business.

      Heh.

      And I thought music execs liked money. I guess they don't.

      --
      And the circle of life continues to spin, occasionally wobbling on its axis thanks to the weighty presence of dumb.
    16. Re:A lawyer working for Warner said this: by Anonymous Coward · · Score: 0

      "I like stealing from corporations. I'm tired of trying to do the right thing when I see the wrong thing being rewarded on a macro level every day."

      I hate responding to old posts but you're one of the few with the balls to stand up and say that. I agree. As a very moral and ethical person I have absolutely NO compunction at stealing from music corporations. These corporations basically embody everything that is evil about modern life. Frankly I'm not into the 'sharing' aspect of it anymore either, and I don't want the music as I already have more than I can listen to in a lifetime. I'm determined to cause the maximum loss and financial damages to the music business as possible, by legal or illegal means. I consider them a hive of scum and villany without redemption. The best way I know to cause the maximum loss of money to these bastards is to share on DVD, not via the net. Within my circle we exchange DVDs of mp3s, each containing tens of thousands of tunes. I compile these into larger and larger collections. It occurs to me that a single shoebox will contain every piece of music ever made and recorded using compresion. In 10 years time the same media will fit onto a single disk. That's every piece of music EVER written on one disk. If each person already has a copy how is the music business going to sell back catalogue. Since all the lawsuits are aimed at internet sharing they are missing the real heavyweight offensive, on personally shared DVDs. Here's my advice...dont use Edonkey or Kazza, never share online with strangers, that's small stuff. Share on the BIG end of scale swapping entire collections with your friends 1 to 1. Nobody can touch you or prove a thing, and it does far more real damage to the greedy talentless cunts up at TimeWarner. BTW I am a musician and artist.

    17. Re:A lawyer working for Warner said this: by The_Quinn · · Score: 0, Troll
      You spew vitriolic hatred toward companies - whose purpose it is to grow, excel, and be as profitable as possible. You want to bop along with your ipod, munching Doritos and sniggering about how mean the record companies are because last year downloads were 10 cents cheaper.

      All these people in the industry devote their lives to the industry and work incredibly hard to achieve their goals. You (or I) don't know the first thing about the pressures and demands these people face day in, day out. But you don't have any problem scraping your fingernails on the chalkboard of whininess, and proclaiming "If anyone changes the price of music, I'll just steal it! Waaahhhhh"

      Do you work for free? Have you ever changed jobs to make more money? Do you want to get by in life with more than barely subsisting in a cave with a hunk of meat? Then aren't YOU the "greedy bastard"?

    18. Re:A lawyer working for Warner said this: by sgant · · Score: 4, Insightful

      This isn't the case and you know it. I don't spew vitriolic hatred for companies...just the RIAA ones.

      I'm not sure how much you know about the recording industry, but these people do NOT work incredibly hard. What they did was create the "company store" atmosphere that the mining companies did with the miners. The actual artists are pretty much slaves to these companies after they sign their contracts. Do you know how much the average recording artist makes off of a average CD? It's the ARTISTS that work incredibly hard and face the pressures day, day out and they usually end up owing the company money for their CD.

      Case in point, remember a girl group called TLC? They had a number one hit a few years ago with "Don't Go Chasing Waterfalls". The song was everywhere, won awards, millions of CDs were sold. Care to take a guess on how much money they made for those millions of CD's sold? After paying off the company for recording time, the actual printing and distribution of the CD's etc etc(yes, the artists pay for all this) they were left with 50,000 dollars each that year. In TLC's case, nearly a year after the group sold 10 million copies of "CrazySexyCool," they filed for Chapter 11 bankruptcy. Their record company didn't lift a finger and they were on to their next conquest.

      Also, do I work for free? No. Have I changed jobs to make more money? No, actually the opposite, I moved to a different part of the country and took a substantial cut in pay. I'm actually below the poverty line and yes, I'm barely subsisting...though not in a cave. I still manage to donate my time and what little cash I have left over after bills (bills meaning electricity, heat and food...no car payments, no cable tv, no credit cards) to the community. Yet, I'm very happy.

      Also, I said I'd rather steal than line the pockets of these guys...but I never said I'd actually do that. I'd rather make my own music...though some would question if it were indeed music.

      And I don't eat Doritos. Any other assumptions you'd like to make about me?

      --

      "Leo Fender was in a 'state of grace' when he designed the Stratocaster." -- Paul Reed Smith
    19. Re:A lawyer working for Warner said this: by Directrix1 · · Score: 1

      You spew vitriolic hatred toward companies - whose purpose it is to grow, excel, and be as profitable as possible. You want to bop along with your ipod, munching Doritos and sniggering about how mean the record companies are because last year downloads were 10 cents cheaper.
      I would say there is a certain amount of greed associated with charging more for an album purchased online (the cheaper distribution method by an order of magnitude), than on store shelves.

      All these people in the industry devote their lives to the industry and work incredibly hard to achieve their goals. You (or I) don't know the first thing about the pressures and demands these people face day in, day out. But you don't have any problem scraping your fingernails on the chalkboard of whininess, and proclaiming "If anyone changes the price of music, I'll just steal it! Waaahhhhh"
      Funny I've devoted my life to my industry and work incredibly hard to meet my goals. The pressures they face are no less contrived than the pressures you or I face. The market has to play to what is willing to be paid. Distribution is cheap now. There are no reasons for the price to go up.

      Do you work for free? Have you ever changed jobs to make more money? Do you want to get by in life with more than barely subsisting in a cave with a hunk of meat? Then aren't YOU the "greedy bastard"?
      A more sensible analogy would be, have you ever had to change your product price to meet demand?

      --
      Occam's razor is the blind faith in the natural selection of least resistance and in universal oversimplification. -- EF
    20. Re:A lawyer working for Warner said this: by fbsderr0r · · Score: 1

      does mtv or mtv2 play music anymore?
      i thought some fat kid just had his personal show on it.

      i get much better music off any of the digital cable or satelite
      music channels.

    21. Re:A lawyer working for Warner said this: by SheeEttin · · Score: 1

      The recording industry is...lashing out when someone tries to take that away from them

      Hmm... can you say "withdrawl"?

    22. Re:A lawyer working for Warner said this: by Golias · · Score: 2, Funny

      iPod nanos are going to sell like hookers this Christmas

      Are hookers going to sell particularly well this Christmas? I would think that with New Orleans still recovering from the flood, it would be kind of a down year for prostitution...

      --

      Information wants to be anthropomorphized.

    23. Re:A lawyer working for Warner said this: by Anonymous Coward · · Score: 0

      Meh. If they were really smart they'd offer something more for the extra money they want to charge. Popular songs are $1.29 but are encoded at 256kbit/s VBR AAC for better quality. Then they can give people the choice to pay for better quality. You can be sure that many people will buy the better quality version and the labels will get greater income from their existing back catalogues.

      Apple can always threaten to lower the price and sell independent artists on iTMS. Apple make more money, artists make more money, customers pay less and people stop buying music from 30 years ago.

      The major labels will cave on this but they will probably get a few concessions from Apple. Independent artists are probably the biggest worry for the RIAA in the medium term. They're perfectly happy to let big artists turn producer because they still are tied into the big distributers and all the artists get is a bigger cut for being guaranteed to make more money for them.

    24. Re:A lawyer working for Warner said this: by 99BottlesOfBeerInMyF · · Score: 1

      The RIAA members collectively own most of the radio stations. If they want to make some talentless skank a star, to make money, they just make sure her new "hit song" plays on all the radio stations. Since that is how most people find (found?) music no one could become a hit and reach a large audience without paying them a between 80% and 120% off the top. (Yes, most musicians lose money by signing with an RIAA label.) Then MTV came along and was a huge success. The problem was, they were playing anything someone made a video for, even if they were not signed with the RIAA. Popular musicians were reaching the public without paying the toll and were making money. It took a lot of money for the RIAA to pay for their acts to get played in the prime slots and to keep those other musicians out of the limelight. It was fiasco, and it was largely because the RIAA is made of dinosaurs who don't want to innovate and don't want technology to make listening to music easier or better. All they want is a steady influx of money.

      So here is what the RIAA fears: the iTunes music store selling and providing free advertisement for non-RIAA musicians. It is already happening to some extent. Songs by indy labels are for sale and their songs can be previewed and purchased. Apple refuses to favor any label in their placement or advertisement, putting whatever they like in the front window of the store. If they wanted Apple could host large quantities of cheap or free indy music exposing a huge audience to non-RIAA songs very cheaply, and Apple would make money doing it through the sale of iPods. What the RIAA wants is time to stop people from using digital music until they can control the formats, the DRM, and the distribution. They envision an online store, or better a whole series of online stores that carry just their music, with heavy DRM, in formats that cannot be easily moved to new computers or new players and will require the user to purchase one copy for every device they own. Their goal is to make sure the iTunes store does not get too popular, without being destroyed in court for price fixing, and before Apple is in a position to bypass them completely and either supplant them or compete with them effectively. Basically they want to keep screwing their customers and make sure that never stops.

    25. Re:A lawyer working for Warner said this: by istartedi · · Score: 1

      The problem with buying CDs is that you actually have to store them someplace. Does anybody offer a service similar to the one that Kitco does for gold? You know, you can buy "pool gold" from their exchange and not actually have to receive physical gold bars or coins. Of course you have to trust an exchange to do something like that, but it seems like we ought to have the option of doing this for music too. Then, you have a vault full of many copies of the CD. You can dispense with the jewel cases to save space, since you are only really buying a license and then... oh... wait... it's a cheaper version of iTunes, assuming the cost of storing the physical media and cataloging it in case you are audited doesn't drive things up too far. Also, unsold inventory actually consumes space, so it may not be possible for such a model to compete, but it seems like it would be perfectly legal as long as you only register one owner per physical CD.

      --
      For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
    26. Re:A lawyer working for Warner said this: by mr_shifty · · Score: 1

      I suppose you could take all your CDs and transfer all of them to DVD... That would at least keep the quality but would take up about 1/4 the physical space, since you can get about 4 times the data on a DVD than you can a standard CD.

      But you're still looking at storing a physical disc somewhere then.

      --
      And the circle of life continues to spin, occasionally wobbling on its axis thanks to the weighty presence of dumb.
    27. Re:A lawyer working for Warner said this: by Phreakiture · · Score: 1

      Why in the world would I ever even consider paying a dollar per TRACK of the same music

      The only upside to $1/track that I can think of is that you can buy just one track. If you just like one song, you aren't forced to buy the whole album.

      only to have harsh restrictions placed on me as to where I can play it, and how many times I can copy it to other devices?

      Here, I'm with you 100%, and it is precicely the reason why I will not be buying HD-DVD unless the movie industry extract their collective crania from their collective recta, in precicely the same manner as the record industry have not done.

      --
      www.wavefront-av.com
    28. Re:A lawyer working for Warner said this: by mr_shifty · · Score: 1

      The only upside to $1/track that I can think of is that you can buy just one track. If you just like one song, you aren't forced to buy the whole album.

      That, I suppose I can see. Pay a buck and get exactly one song. The DRM would still be a turn-off for me though.

      That, and the fact that if you buy a song via iTunes Music Store, the label is getting money from the purchase.

      I don't purchase music in any way from which any RIAA affiliated labels profit directly. It's used CDs or nothing for me.

      Yeah, I know. Somebody had to purchase those CDs to begin with in order for me to get them used, right?

      Sure. But I don't see any reason to supply the RIAA with any more money than what they got from that original sale. They'll only use it to sue 12 year old girls and disabled people, after all.

      --
      And the circle of life continues to spin, occasionally wobbling on its axis thanks to the weighty presence of dumb.
  128. Some background on Bronfman by barthrh2 · · Score: 1

    You have to get some background on Bronfman to fully understand what a raging idiot he is. He is a a stupid son of the very successful Bronfman empire. Like the Rockefellers, the Bronfmans made their fortune during prohibition, building Seagrams. Once Edgar rose to the helm (earned only by name, not talent), he decided that profitable booze was just too boring for him. He started getting into the entertainment business, eventually making a horrible deal with Vivendi to save his skin and destroying the great Seagrams company. It was a massive shame.

    He has always been a huge opponent of digital music. He has never understood it, nor will he ever. He is an arrogant moron. Steve must just roll his eyes everytime he sees his number on caller ID.

  129. the RIAA and MPAA should GET A F'ing GRIP... by futurekill · · Score: 1

    I wish the RIAA and MPAA arguments could be wrapped up siply. Something like 'We need to charge more because it now costs us more to produce our quality (dubious) product...' (even though it doesn't but you get the point) would be a nice change and also a starting point for intelligent debate. Instead all they ever seem to say is 'we want more money' becase, well, 'we want more money'. I can understand that argument, I too 'want more money'. But until the RIAA or MPAA produces something to warrant that, the price should remain the same. I wish more artists would speak out about how they feel about this whole debacle. While the music and movie companies are shelling out millions to produce this stuff it's the Musician's, Directors, Writers and, I guess, Actors that should be controlling the direction of their respective industires (not sure if that made any sense). Music and Movies have always been about entertainment but it almost feels like they are trying to take even that most intrinsic part away...'Buy it because it is there and because we say so at the price we want'. Maybe they should adopt a model similar to how public companies are traded. You can only charge as much as the market will bear. There will be low prices and high based on how much people like the 'product'. Things should reach a 'natural' equilibrium. It's got a lot of flaws but at least then we wouldn't have to hear about how greedy these damn industries have become. The consumer would tell these industries how greedy they can be. Well, that was a pretty eclecktic set of rants. I just find it really frustrating and disappointing to see what our society has become and is heading toward. Neither side seems to want to present a good solution that would be amicalbe and acceptable to consumers, who are by the way, the people that buy most of their crap.

    --
    The gates in my computer are AND, OR and NOT; they are not Bill.
  130. suggestion : they drop apple,so apple drops DRM by Anonymous Coward · · Score: 0

    that would be a fun scenario :
    greedy music execs says 'raise price or we won't sell to you anymore'.
    Now if apple only said 'OK, get lost. We close Itunes and won't sell your music anymore, but from now on all new ipods will ship without DRM support. They'll only play mp3, ogg, unencrypted AAC, and similar formats'.
    Now that'd put the music execs in a very delicate position, with lots of people buying ipods (more than before, I reckon - I'd buy one for one), then either demanding to have drm-free music for legal download ... or turning to less legal alternatives for their restrictions-free music.
    Smart move, really....

  131. Explain this to me by i_am_profiled · · Score: 1

    Apple doesn't hardly make any money on their music store right?

    But someone this is a golden cash cow for the music industry, who have got to be the stupidest people in the world to shut it down?

    Does anyone have any numbers on percentage of online music sales versus total sales?

  132. braindead? by fadir · · Score: 1

    Sorry, but did they lose their mind, completely?
    I do not get it. They get more money out of ITMS than they get from their cd sales and still they demand more? Did their greed for money already ate their brains?

    How stupid can one be? It's idiotic, they are already digging their own graves and now they literally demand that one of their biggest supporter has to switch sides to help digging?

    Every shimp has more intelligence than those managers!

  133. If Jobs did by rabid_sith · · Score: 0

    tell the execs to shove off and get a number of artists under them, I bet it would put quite a porcupine in the RIAA's pouch. And I'd be loving every minute of it.

  134. Music industry already have money from Ipod & by davFr · · Score: 1

    In different European coutries, music industry (and thus Us majors) gains some money on every MP3 player sold. This is a tax, depending on the actual capacity of the harddisk in the MP3 player. In France this tax is called Sorecop. This is a shame, because I already pay this "Music Tax" because of every harddisk in my PC. and every memory media I have (such as CD-R, DVD-R). So how many times should I pay the tax to please the RIAA?

    --
    RIP Slashdot. I used to love you. dead account - but slashdot wont let me delete it.
  135. Hmmm ... but in Australia.... by sarahtim · · Score: 1

    We don't have iTMS as the record companies will not agree on a deal with Apple - and iPod sales have followed the same growth curve as they have everywhere else. I don't think the record companies could sustain that argument.
    (Most people here fill their iPods with music they've ripped off their CD's, which is against Australian law but none of the record companies have tried exercising yheir legal rights - yet.)

  136. The Market'll Straighten This Out But Good by themesb · · Score: 1, Interesting

    Though I think the music industry is acting in an exploitative and short-sighted way, I'm not terribly worried. The general consensus from the tech crowd seems to be that $3 a song is gouging. Supposing Apple caves and lets labels price their songs higher, consumers will reject price gouging and go back to piracy. After all, the labels aren't just competing with each other, they're competing with illegal P2P. Consumers have shown that they'll pay $1 for a song legally, but my guess is that if $3 is too much, the labels'll know it pretty quickly through lost revenue and prices will drop again. To play devil's advocate, though, consumers may actually be willing to pay more $ for certain songs. All songs, after all, aren't created equal, and I'd rather pay $5 for one good song than $1 for 20 bad ones. In any case, I'm guessing prices will be exactly where they should be in several years.

  137. Re:The music industry is stupid enough to do this. by Bastian · · Score: 3, Interesting

    My dream scenario for this starts with the RIAA following through and yanking the rights to all of their music from Apple.

    Should this happen, Apple will have to find something to do with iTMS - I think shutting it down would be their very last resort. Much more likely, Apple cashes in on what little "counterculture" street cred they might still have, and starts courting independent bands and labels.

    Freed of the insatiable greed of the RIAA, they and the indie lables start turning the store into a much better service. The samples will get longer, and you will even be able to download full songs from many bands looking to market their new albums. The iTMS becomes a worthwhile service, and rapidly gains popularity. Pundits declare it the center of the independent music Universe, and hail Apple as the Greatest Company on Earth.

    On top of that, Apple starts really capitalizing on the podcast thing. They start arranging agreements with various news and sports radio networks whereby people can subscribe to shows for a price. Apple breaks out of the young technophile music-head market and starts getting the attention of NPR addicts. (However, they will draw ridicule when their ad campaign featuring sillhouettes of people wearing headphones sitting at desks or driving home in traffic and being less bored than normal is launched.)

    Through it all, Apple fares fairly well, and may even lose some of the "evil corporation" reputation it's been earning lately, although its profits may take a slight hit as the iTMS becomes more expensive to run. iPod sales will stay where they are, because iPod sales drive iTMS sales, not the other way around. Customers aren't hurt because there are plenty of other places to download MP3s on the internet.

    The RIAA, though, ends up with egg on their face as their play at forcing Apple into a position where they can be accused of (and sued for) actively supporting piracy with iTunes and the iPod fails miserably. They also hurt their sales as they close down a small but noticeable source of revenue and it is promptly replaced by the biggest advertisement and point of sale that their competitors have ever had. Their reputation suffers further as a few more people are added to the ranks of those who think the RIAA is a pack of fucking morons with a greed problem.

  138. Why does Jobs get to decide what music is worth? by geekee · · Score: 1

    Reord companies own the music. They should be able to decide what it costs Apple to sell a song. Apple then can add whatever cost they want on top of that. Why is this even an issue?

    --
    Vote for Pedro
  139. Record Labels Making Mondo Mistake by PortHaven · · Score: 2, Interesting

    How long until Apple simply approaches all of the musical artists and licenses "direct" for digital. RIAA actually has made a mondo mistake. They have licenses to distribute the recordings. Correct.

    However, RIAA has also put much effort into distinguishing "analog" from "digital". Enough so, that a good lawyer could argue a case for the artists that RIAA was not granted the right to collect "digital" royalties.

    (This actually came up with the lawsuits against "web radio" and the creation of a "digital royalties" collection agency.)

    However, it could be pushed by the artists that they are distinct. And they could then license the "digital distribution" exclusively to Apple. Even if the case is lost or held up in court for years of debate. Apple could sign "digital distribution rights" with new bands. Keep the price $0.99 cents and split $0.25-$0.50 with the artist. Artists would see much more profit from Apple's model. While at the same time the record labels would see a loss of revenue. Eventually, the record labels will go bust and Apple will be able to buy their portfolios (just like RIAA did with MP3.com & Napster).

    Touche

    1. Re:Record Labels Making Mondo Mistake by Feanturi · · Score: 1

      I like what you're saying, but I wonder about something. If the recording companies get all beat up in all of this and Apple winds up distributing all of the music digitally, no more middle-man, then who actually does the recording? Who provides the studio, with all the high-end mixing equipment? The digital info still has to come out of instruments, throats, armpits, etc, pulled through a mixing board controlled by some sort of professional. It's not just a question of mixing tools either though, that's pretty accessible thanks to good PC software and peripherals, and an amateur can get pretty good results, but you still need a good acoustic space to work in and all that. So if the record labels go away, who actually gets the music into a distributable form?

      I'm definitely not saying that I want them to continue, they suck, I just wanted to point out there's still got to be some kind of middle-man job here.

  140. Alternatives to iTunes Music Store by Gerhardius · · Score: 1

    There are alternatives to iTunes, many people already use them, but they often don't have the major labels on board. I like Emusic.com and have found a ton of stuff there that iTMS would never touch. The cost per download is well below $.99 per song but they don't have much in the way of "top 40" stuff or whatever crap the major labels spew out. If the major labels want to setup their own service and charge twice as much per song as iTMS they will still have a market: that range of people who buy into the promotion and the folks who can't let go of the hits catalog back to the 60's. If the bulk of the sales at iTMS are from these major labels the traffic will follow the product. The major labels are not stupid enough to try to force people back to the record stores, but they are willing to maximize their profits from the online market. The smaller labels are simply trying to get their product out there and are happy with service that ends up costing the listener less than $.30 per song but the major labels want profits for their corporate empires.

  141. Great news for Apple and artists by Pampusik · · Score: 1

    This is great news for Apple and artists.

    If the music distributors would drop iTunes, Apple could contract with artists to drop their labels and use Apple as their sole distributor. This would allow artists a larger share of the pie while keeping tunes at the $0.99 rate.

    Everybody would win... except the big labels. :) Digital music is the way of the future, and this is Apple's big opportunity to capitalize on it...

  142. It's Hertz, not Warner's Nash by bayvult · · Score: 4, Informative
    Oops - it was Alanis Morissette's lawyer Ken Hertz, not Warner Music's Michael Nash who made those remarks.

    More interestingly, Hertz is a proponent of blanket licenses:

    Peer to peer file sharing is really just interactive radio consumers get to listen to exactly what they want when they want it. This demand is not addressed by the record industry. In fact, it cant be offered legally at any price. And as I think Ive illustrated, technology and reality will insure that supply finds its way to meet that demand...

    and

    My partner Fred and I therefor support compulsory blanket licensing. The same way restaurants, radio stations and elevators pay for background music, a tariff on communications technology could permit non-commercial file sharing to flourish, and copyright owners to benefit financially. File sharing is NOT piracy. Piracy is big fat guys manufacturing fake CDs in Mexico and selling them at swap meets. File sharing is tens of millions of music fans swapping copies of things they wouldnt otherwise buy. An ASCAP or BMI like pool of money allocated in an equitable way amongst copyright owners is the only solution that could be of benefit to creators, consumers and copyright owners. Compulsory blanket licensing for non-commercial file sharing is the equivalent of loosening a tourniquet tied around the entertainment industrys neck.
    - ACLU Bill of Rights Dinner - Thursday, December 12, 2002

  143. Bring it on! by TheBadger · · Score: 1

    Personally, I'd like to see them pull the plug, then Apple to offer to bail all of the artists out of their stinking contracts in return for dealing direct with them. Hehe, that would be the recording industries worst nightmare.

  144. Re:Won't apple have to call it something else? by vertinox · · Score: 2, Informative

    If I remember correctly, didn't Apple computer have a spat with Apple Records (the ones the Beattles started) but settled by saying they will stay out of the sound business and even later having a fight over the sound card on a mac?

    Although, I guess apple could call the label "iTunes Records"

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  145. OK, so warner music goes under first, then by swschrad · · Score: 1

    if they don't want to sell legally to podheads, screw em. I wouldn't buy anything on CD from them if I couldn't get it direct to pod. that would make warner music the first big label to crash as the business is changing, because they're cutting off the growing segment of the market because they don't own the channel all the way up, down, and sideways. the first dinosaur has roared from the tar pit.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  146. Apple's Should Modify their License by PortHaven · · Score: 1

    Include a EULA:

    "Apple Computers may not be used to produce or modify or effect in any way, any recordings to be licensed to RIAA members. Any use of Apple computers to do such is a violation of the Mac OS and will be prosecuted to the full extent of the law as applicable in the DMCA. Including, pursuit of the right to distribute said creative works."

    *ha ha*

    That'd be funny as 90% of music studios utilize Mac's.

  147. Dear RIAA... by Anonymous Coward · · Score: 0

    Dear RIAA,

    Please pull your music from iTMS so I can go back to downloading all my music from P2P sources like I did before. I always said that I used P2P because there wasn't a single online music store that was actually worth using. When iTMS came along, I couldn't justify it anymore, so I went legit--but with your help, I can go right back to Bittorrent with a clean conscience!

    Much obliged,

    A Music Lover

  148. Re:The music industry is stupid enough to do this. by paisleyboxers · · Score: 1

    I have been through three ipods (because i'm stupid enough to never buy the apple care plan).. and every time I've ripped my own albums and sent them down through gtkpod. i've never infact purchased anything other than the basic ipod and some nicer earbuds (the apple ones just plain suck).

    DRM and me never got along, and the idea of people having ipods to do whatever with? (given all the open source alternatives) is the great appeal for me.

    i've taken great care to make sure that quicktime nor itunes ever touch my harddisks.

  149. SPA audit anyone? by Anonymous Coward · · Score: 0

    I think it would be funny were Apple to cause an SPA audit to happen to all these record companies. Lots of Macs in the industry. Lots of pirated MacOS, Logic..

    It wouldn't help their cases against filesharer's if they were known as notorious software pirates. And of course, there's the licensing fees, which could be waved if the record companies dropped their pricing demand.

  150. iPod plays MP3s just fine by billstewart · · Score: 1
    I've got an iPod Shuffle. I've downloaded some 99-cent songs from Apple, and some free MP3s from legitimate sources (e.g. bands that let you download some songs from their websites and hope you'll download more, and amateur singers putting their music out for fun.) I would have ripped some CDs I already own, but WindowsXP doesn't seem to know how to get the audio track off my CD-burner, but you can either blame Bill Gates or Doctor Polaroid (burnmax48 drive) or the CD standards bureaucrats for that; it ain't Steve Jobs's fault.

    As I said, MP3s play just fine on my iPod. If one major music distributor channel doesn't like Steve selling their tunes when the public would have been happy to buy them, there are other major labels and lots of indies who will let Steve sell their music. If all the major labels gang up to illegally price-fix their tunes by not selling to Steve or by raising their prices, well, they know that MP3s of their music plays just fine and there are lots of places to download them, Yarrrr!!!!, and meanwhile we can still get smaller labels' music from iTunes and lots of jam-band stuff off eTree.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  151. It's too late for the recording industry by tm2b · · Score: 1
    Here's the thing: Recording companies have exactly two reasons they can continue to exist in the face of deep resentment from their artists:

    • They have a lock on distribution (that is, only they can get your album into stores),and
    • They have a lock on promotion (that is, only they can get your songs onto the radio).

    As a result, recording companies can ream new artists in exchange for the promotion and distribution that only they could offer.

    The iTunes music store destroys the first advantage. No longer does a musician have to sell their soul (in the form of the rights to their creative output) to a record company in order to sell their music to you: they only have to talk to Apple now in order to sell their music (in fact, I have a number of indie friends who have done just that).

    The second advantage will fade on its own, hurried on by payola scandals. The internet has taken the popularity of music out of the hands of recording industry executives, since fans can now communicate with each other.

    The iTunes Music Store is driving a stake through the recording industry's dead, desicated heart. This was all largely inevitable, but now that they're starting to realize that they're doomed they're going to fight Apple in increasingly shrill manners.

    I hope that someday the same structural shift will kill the deadlock television executives have over TV content.
    --
    "It is our blasphemy which has made us great, and will sustain us, and which the gods secretly admire in us." - Zelazny
  152. No longer true by Thu25245 · · Score: 3, Informative

    The Music Store has been solidly profitable for years now, according to the quarterly conference calls.

    When Apple was dealing with the setup costs, the store was a break-even endeavor. Those costs are now over, and the store is profitable, though with small margins (compared to the 20-30% it makes selling iPods and G5s.)

    1. Re:No longer true by tricorn · · Score: 1

      "... for years now ..." ? The iTMS has only existed for about 2.5 years total! I know people have short memories these days, and things that happened 10 years ago seem like a different century, but referring to something as "for years now" sort of implies more than 2 years - I'd probably interpret that to mean at least 5, if not 10 years. I mean, to say that Duke Nukem Forever hasn't come out for years now would be fine, but to say that Firefox has been taking market share away from Microsoft for years now would be pushing it a bit...

      Next you'll be talking about how mature XML is.

    2. Re:No longer true by covertbadger · · Score: 1

      I know people have short memories these days, and things that happened 10 years ago seem like a different century

      Uh, seem? 10 years ago it WAS a different century. Millennium, even.

    3. Re:No longer true by tricorn · · Score: 1

      It was a joke, son.

    4. Re:No longer true by Anonymous+Cowpat · · Score: 1

      It's a joke, Son. (not bad for 1947)

      --
      FGD 135
  153. Oligarchy of Greed! by Quash · · Score: 1

    So, let me get this straight... The digital audio player industry, essentially created by Rio in product and law, has allowed the record industry to get rid of manufacturing, get rid of distribution, bypass the B&Ms, create a whole new revenue streamand... They want an album to still cost the same as a CD, which is already artificially inflated by an oligarchy of greed. So much for anti-trust laws. These people are G-L-U-T-T-O-N-S!!!

  154. Re:I think Apple needs to do a "week without iTune by Agent+Green · · Score: 2, Informative

    CDBaby already put a lot of their artists' catalog on iTunes...but there is some paperwork the artists need to fill out before they can do that. (i.e. assurring that the material is original, etc.) CDBaby even has its own ISRC identifier that it tacks on all the digital tracks that they sell. Check out their digital distribution info here: http://www.cdbaby.net/dd They also don't limit themselves to iTunes...and they take a 9% cut of whatever they get after fees. Not too shabby.

    Magnatune goes direct...and lets the listener set the price per disc...which is an entirely different concept. Very cool indeed, but they're more selective about what goes up on their site. Plus, you can play the stuff before you buy it. Once it's bought...pick your distribution format.

    --
    // Agent Green (Ian / IU7 / KB1JQO)
    // IEEE 802.3: All 10base Are Belong To Us
  155. Charging 50 cents for 50-Cent's tunes. by billstewart · · Score: 1
    Will variable pricing happen? Probably, though right now the two main prices in the market are 99 cents at iTunes and 0 cents at many other fine distributors. 99 cents per tune is typically $10-15 per album, which is about the same as the current prices from the big labels, i.e. way too high. On the other hand, many music consumers don't download all the tunes from an album, so overpriced single tunes, while a threat to the Album-Oriented Business Model, may not be as overpriced as they look.

    Will some of the indie labels let Steve buy their tunes for less and sell them for less than 99 cents? It could happen, especially if the major labels conspire to raise their prices in an attempt to deal with the fact that they're doomed anyway.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  156. Re:Why does Jobs get to decide what music is worth by Jerry+Rivers · · Score: 1

    It's an issue because if the big labels dictate the price it's called price fixing. They can recommend a price but it's up to the retailer to decide how much they want to sell it for.

    --
    The pursuit of absolute tolerance leads to the most rigorous and ludicrous intolerance. - REX MURPHY
  157. Is anyone listening by Zoomshare · · Score: 1

    I stated before in a discussion about lawsuits that one company will force the record labels to lower there cost. That company will be either google, Microsoft or Yahoo. It won't be Apple, Steve jobs did a great job of starting the trend. However, Google and Yahoo can reach more people with their website - advertise online at their sites for free, and target users based on different areas they visit (i.e most people that visit Google blog search my like a certain music so you promote that genre of music on that site). The price of a song is worth less then a dollar. We have to pay for the marketing-producing-potential profits of the album thats why a cd is 10 bucks. Ahh but once the system is in the hands of a Super power like Google the ITune model will explode and revenues will be up as downloads will increase 3 fold. DO I have proof no! But the download trend is keeping the record labels alive. Now they are looking at greed to get back to the old days of multi-million dollar album sales.

  158. Wait a second... by Schnapple · · Score: 1
    If iTunes, with it's $0.99/song, $9.99/album model isn't good enough for the music industry, then how exactly is the Napster "as much as you can eat for $9.99" model producing enough money? Or will that be summarily executed next?

    I guess one could argue that iTMS underscores music piracy ($10K to fill this thing? Fuck that, I'll just steal it) but isn't it better than the iPod just being an MP3 player?

    1. Re:Wait a second... by Deadguy2322 · · Score: 0

      The industry benefit from the subscription model is that you only have the music while you keep paying. Didn't download anything new this month? Still $9.99. Miss a monthly payment? All music downloaded under the subscription goes "POOF!" No more music, even if you resume payment, old files are gone till downloaded again. And, you can't burn these files to CD, so no messy hardcopies to worry about. Since most people will slow down or stop downloading once the novelty wears off, but forget to cancel the sub, the record companies make their money with less and less product consumed as time goes by. In the long run, they make a lot more this way.

      --
      Check out my foes list to see who is so retarded that they can't use the signature line!!!
  159. Looters by sirra462 · · Score: 1


    Apple scares the industry. For years the music industry has not had to do anything. They find musicians and force music onto the masses through politics and marketing. The musicians create, the consumer buys, the music industry profits.
    Apple has removed several key parts in the industry - media, and distribution. With iTunes, the artist can ideally record music, put it on iTunes, and then promote it. The music industry will see nothing, and Apple will see everything.
    Please Apple, do not cave in and accept these demands. Given enough time, the non-evolving leaders of the current industry will dissolve and people will forget that they ever dealt in music.

  160. Warner exec was misquoted... by ethank · · Score: 2, Informative

    Warner Music: iTunes Statement False
    By Ed Oswald , BetaNews
    September 29, 2005, 12:20 PM
    BetaNews has learned that a quote widely attributed to Warner Music's digital music strategy chief Michael Nash, which received a lot of attention in the press, never actually occurred. Nash was quoted as saying they'd "cut him off," referring to Steve Jobs and iTunes if discussions were not favorable to Warner Music Group, and that "very few people buy music from digital downloads."

    "He was misquoted in a lot of different sources," a Warner Music spokesperson told BetaNews. The comment first appeared on British technology site The Register http://www.theregister.co.uk/2005/09/27/warner_app le_decapitation/>, which had quietly removed the story by Thursday morning. The spokesperson would not comment on the status of any negotiations with Apple.

    1. Re:Warner exec was misquoted... by Apotsy · · Score: 2, Interesting

      In other words, it was a trial balloon, to see how people would react to the idea.

  161. Apple's hardware sales by simpsone · · Score: 1

    I'm surprised no one has mentioned this yet, and I don't know if it's exactly analagous, but what about Apple's hardware sales? My understanding is that Apple resellers cannot sell below the price Apple sets without Apple rejecting their license to be a reseller. Is this not at least faintly similar behavior?

  162. It would be nice if... by Wile_E_Peyote · · Score: 1

    ..Steve told em to go fornicate themselves and dropped their music the instant they complained. I don't think they (The Music Industry) understand how much Apple adds to their profits. Apple is a whole new distribution channel for them.

  163. I just wish it wasn't necessary to have all these by MarcoAtWork · · Score: 1

    separate music stores: I was born in Italy, and I'm sometimes interested in Italian music which, although present on the Italian iTunes site (obviously), is nowhere to be seen in the North American ones. I also like Queen, say I wanted to buy "hot space", no way, that's available only in the US store, but not in the Canadian one (why?). I sometimes also listen to world music, plenty of artists available from the Japanese, the UK, the Swedish stores are nowhere to be seen in the USA one.

    As of now I can order an "import" CD from Amazon.ca whenever I want or heck, even order directly from amazon.co.uk or amazon.com, but for some reason I am not allowed to do that on the internet: where's the logic in this state of things? Just because I live here in Canada it doesn't mean I should be interested only in "approved for Canada" music/books and so on.

    It's like the US customers not getting a lot of British fiction commonly sold here, and getting "translated" versions of Harry Potter without having a say in it: this is just ridiculous.

    --
    -- the cake is a lie
  164. $50 Gift Card by failedlogic · · Score: 1

    I have a $50 Gift card which you can bet I will be using tonight or tomorrow. No way I'm going to buy less songs because of this.

    And if the labels want to rasie the prices then I'm going to keep buying less new albums ... wait I already am buying less because the new ones usually suck. I mostly buy late 80s' early to mid 90's rock, jazz and blues because I haven't found many new rock bands I like. Most POP music blows too. I'm buying 'new-age' country female vocalists' CDs because they have great voices and the lyrics are pretty good too.

  165. welcome the digital challengers by swschrad · · Score: 1

    used to be way back in the old days when records were 78s and radio announcers had to announce, "The following program is a transcription," before playing a record... that ASCAP artists would not allow their music to be played over radio. shock! and! awe!

    well, that was the ASCAP board talking, and a bunch of artists walked on down the street, rented a lawyer and a space, and established BMI as a music licensing agent. BMI has beated the schytte off ASCAP's pants in business almost every year since.

    if RIAA is ready for a schism, there are plenty of great musicians that are not getting contracts or are being screwed over on royalties that are ready for an alternative. lots of musicians don't want into the present star-maker machinery and are trying everything from PatroNet to burning their own "greenies" and trying to sell them at bars and gas stations.

    mp3.com was a place where a lot of them tried to get it done. iTunes could be a much hotter eMarket.

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  166. iTunes Operations Staff needs a vacation anyway! by billstewart · · Score: 1

    One of my friends is on the iTunes staff, responsible for keeping the iTunes download system running. She spent New Years Eve party glued to her pager/palmtop watching the server stats instead of paying attention to the cute guy she's been seeing, because it was her turn to make sure everybody who got an iPod for Christmas could keep buying tunes. Shutting down iTunes for a week would mean that she and her co-workers could go on vacation....

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  167. Don't worry about it, folks by Anonymous Coward · · Score: 0
    This is the same http://slate.msn.com/id/1862/Edgar Bronfman who ran Seagrams into the ground with his "business savvy". The same Edgar Bronfman who was so keen to introduce variable pricing for movies once upon a time. Look how well that did.

    This ploy will go nowhere. He'll most likely run Warner into the ground with his hair-brained schemes.

  168. OK, so it's about time for Apple to sponsor... by Assassin+bug · · Score: 1

    It's own label! Look, with artists like U2 and Madonna collaborating with them why don't they spin off their own label. Could be huge!? And, considering Apple's sales I'm sure there will always be smaller labels that would happily distribute their stuff through Apple.

    1. Re:OK, so it's about time for Apple to sponsor... by Tankko · · Score: 1

      Oh yeah, the Beatles would love that.

    2. Re:OK, so it's about time for Apple to sponsor... by klang · · Score: 1

      I guess Apple Computer's first move should be to BUY Apple Records and be over with it. Granted, Apple Records is not a big lable, but they are already established and I'm sure that Michael Jackson would be happy to let The Beatles into iTunes ..

  169. alternatives by IndependentVik · · Score: 2, Informative

    Join emusic.com. High quality drm-free mp3s, great selection of independent artists, fast downloads, much cheaper than itunes.

    Addicted to the major labels and couldn't possibly live without their music? Yourmusic.com, $6/CD. It's a music club, so they're not going to have everything, but almost everything that's popular enough they'll have a few months after the retail stores do.

    --
    I'd suggest you don't use Slashdot as your only news source, or you will suffer permanent brain damage.
    1. Re:alternatives by gfody · · Score: 2, Informative
      --

      bite my glorious golden ass.
    2. Re:alternatives by Pharmboy · · Score: 2, Insightful

      Before I would buy from a website that registers its name with bogus info (mp3search.ru) or send my credit card info to Russia (both sites are Russian, do a whois) I would explore some options a bit closer to home.

      If you LIVE in Russia, fine, but I won't be giving my credit card info to companies out of the US, Canada and western Europe.

      --
      Tequila: It's not just for breakfast anymore!
    3. Re:alternatives by kaitou · · Score: 2, Informative

      Check with your credit card company. Most banks offer throw-away card numbers that expire at the end of the month and are only good for a set amount.

    4. Re:alternatives by aaron_hill2 · · Score: 1, Insightful

      What about Australia, New Zealand, South Africa and Japan? :P

    5. Re:alternatives by Anonymous Coward · · Score: 1, Informative

      I've been using both of these sites for at least a couple of years, and I haven't had any problems. True, they are in Russia, but if they want a sustainable business model, they can't turn around and screw you with bogus charges to your card, no one would use them anymore.

      My coworkers have started using them also, and none of them have any problems. I usually buy my music from these sites, and if I can't find something, I fall back on iTunes, and if iTunes doesn't have it, I go find it on bittorrent.

    6. Re:alternatives by Anonymous Coward · · Score: 1, Insightful

      Well, coming from an anonymous coward, then I have to believe this....Not exactly an endorsement when you won't even log onto as a user.

    7. Re:alternatives by Pharmboy · · Score: 2, Insightful

      Or I could just do business with reputable companies, which is a whole lot easier. Why would I do business with a company that will not provide their real address? Throw away credit card or not, I am just not interested in dealing with companies like that.

      Do you buy Rolex watches from guys hanging out on the street?

      --
      Tequila: It's not just for breakfast anymore!
    8. Re:alternatives by Pharmboy · · Score: 1

      What about Australia, New Zealand, South Africa and Japan? :P

      Legit question, and point taken. I have never done any business with companies in those countries like I have in the US and Europe, so I have no experience. I wouldn't be against it, but I would have to do some research first. I haven't seen any products there that I couldn't get here, so haven't had the reason to look into it before. 99.5% of the time I find what I want in North America anyway, which is local for me.

      The key is that those countries have well established consumer protection laws that are similar to the US, which is NOT the case in Russia, much of eastern Europe, and parts of the middle and far East. I haven't bought from Mexico or South America either, although I have sold and shipped to a few countries there.

      --
      Tequila: It's not just for breakfast anymore!
    9. Re:alternatives by kaitou · · Score: 1

      I was talking about allofmp3.com directly, where your problem was not that they used fradulent info (which they didn't) but that they weren't in a country on your 'approved' list.

    10. Re:alternatives by IndependentVik · · Score: 1

      Am aware of both sites. I didn't link to them because I, personally, don't think they're on the up-and-up. I wouldn't suggest anything that I wouldn't use myself.

      --
      I'd suggest you don't use Slashdot as your only news source, or you will suffer permanent brain damage.
    11. Re:alternatives by JourneymanMereel · · Score: 1
      Do you buy Rolex watches from guys hanging out on the street?

      Ummmmm, ya.... doesn't everybody? :)
      --
      Life has many choices. Eternity has two. What's yours?
  170. Would it be so bad if they did? by ostermei · · Score: 1
    I don't think it would be such a bad thing at all if the RIAA dropped their labels off of ITMS. It'd just save me the ALT-TAB over to Firefox to check the RIAA Radar when I find a new band that I like, and it would give some much-deserved exposure to some of the great independent bands that are out there.

    Maybe instead of seeing the Top 10 list filled with crap from Nickelback, Kanye West, Ashlee Simpson, Fittycent, and Kelly Clarkson we could start seeing something listenable, for example from any (or all) of the following:

    --
    "Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read." -- Groucho Marx
  171. Apple gets 4 cents on every 99 cent download by saha · · Score: 5, Informative
    First I think Apple earning only 4 cents for every 99 cent download is very reasonable. Considering it is Apple who hosts the iTMS (servers, bandwidth and ...other over head), R&D for the iPod and they came up with an elegant solution for consumers to gain access to music from a wide variety of labels under one roof.

    The record industry is too anachronistic to have the foresight to create this solution themselves and are still obsessed with selling a solid medium (LPs, tapes, CDs), while treating its customers as criminals and artists as expendable commodities that can ignore paying royalties if they can help it

    A brief look at the practices of the record industry reveals that they are the dishonest lot:

    Apple earns less than a nickel per iTunes track

    States settle CD price-fixing case

    RIAA Continues Distributing Dud CDs to Satisfy Settlement

    A music industry case study Shows how little the artist makes thanks to middle men like the record industry

    Wal-Mart Wants $10 CDsRemember when CDs first came out and people said it was too expensive and the record industry promised that it would go below $10 eventually. Never happened

    How Apple saved the music biz

    FTC: Labels charged with price-fixing - again

    Music Firms to Look Harder For Artists Owed Royalties Spitzer announced a settlement in which the nation's five largest recording companies promised to do a better job of tracking down and paying $50 million in unclaimed royalties to thousands of performers.

    Finally, last night 2005-Sep-29 on Nightly Business Review (NBR) was a four part series on the music industry. It shows how iTMS allowed one relatively unknown electronica artist sell directly to her consumers with the iTMS . Her music was featured on NPR and then people all over the world wanted to download and listen to her music. Stores like iTMS are the great equalizer from years of abuse from the greedy record labels. "The Business of Music,"-Part 4: The Down Low On Download Distribution

    1. Re:Apple gets 4 cents on every 99 cent download by Mac+Degger · · Score: 1

      Well researched post, thanks for the linkage!

      Back ontopic: this is EXACTLY like the oil companies telling the car manufacturers that they want a cut of all car sales, because the gasoline they sell is driving car sales.

      The utter fucking gall of these people. And to think that lobyists for this group are buying legislation...you US-ians should be scared shitless that your elected representatives are even listening to these creeps.

      --
      -- Waht? Tehr's a preveiw buottn?
    2. Re:Apple gets 4 cents on every 99 cent download by wahsapa · · Score: 1

      most.informative post. ever.

    3. Re:Apple gets 4 cents on every 99 cent download by hnjjz · · Score: 1

      The record industry is too anachronistic to have the foresight... Finally, last night 2005-Sep-29 on Nightly Business Review (NBR) was a four part series on the music industry. It shows how iTMS allowed one relatively unknown electronica artist sell directly to her consumers with the iTMS . Her music was featured on NPR and then people all over the world wanted to download and listen to her music. Stores like iTMS are the great equalizer from years of abuse from the greedy record labels. "The Business of Music,"-Part 4: The Down Low On Download Distribution [nbr.com] Maybe the music industry does have very good foresight about what this technology will lead. Artists selling directly to consumers without going through the big record labels must be a terrifying prospect for the music industry.

    4. Re:Apple gets 4 cents on every 99 cent download by Anonymous Coward · · Score: 0
      The utter fucking gall of these people. And to think that lobyists for this group are buying legislation...you US-ians should be scared shitless that your elected representatives are even listening to these creeps.

      Mark Twain "We have the best government in the world... that money can buy"

    5. Re:Apple gets 4 cents on every 99 cent download by denominateur · · Score: 1

      I hope you're not sitting in the UK because Blair & Co. and the BMI appreciate their regular togetherness a bit too much for my taste... Fuck them I say and listen to indie music.

    6. Re:Apple gets 4 cents on every 99 cent download by xtracto · · Score: 1

      What an excellent post.

      I was really attracted by the Wal-Mart vs Record Labels battle. I know that on average, Wal-Mart is considered bad, but in this case its practices could really make pressure for the Record Labels and make them decrease their prices.

      A notable quote from a Best-Buy representative states:
      "The record industry needs to refine their business models, because the consumer is the ultimate arbitrator. And the consumer feels music isn't properly priced."

      So it lets you see that in general people is pissed of with the actual prices.

      An interesting piece of information is the "breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail" which shows where the money goes for a new album with a list price of $15.99.:

      $0.17 Musicians' unions
      $0.80 Packaging/manufacturing
      $0.82 Publishing royalties
      $0.80 Retail profit
      $0.90 Distribution
      $1.60 Artists' royalties
      $1.70 Label profit
      $2.40 Marketing/promotion
      $2.91 Label overhead
      $3.89 Retail overhead

      Although the article is from October 2004, I found it really interesting. My question is, those extra $6 are the "Label oerhead" and "retail ovehread", can anybody tell me what exactly does that means? and if it could be reduced?.

      Oh and the other is, is the "$0.17 Musicians' unions" piece of the pie the one that goes to the RIAA??

      And all that makes me thing about a previous story on slashdot: Group Releases Album as Free Download. If these guys recieve $0.5 cents for each person that downloaded their CD, they will win more than if selling it through a music label!

      --
      Ubuntu is an African word meaning 'I can't configure Debian'
    7. Re:Apple gets 4 cents on every 99 cent download by Paradise+Pete · · Score: 1
      mi ortografía en Inglés apesta, solo acepto críticas si están escritas en Español

      Una cosita, nada más. En inglés, a ganar por negocío no es win, es earn.

      If my spanish stinks, I only accept criticism written in English. ;-)

  172. what the hell for? by swschrad · · Score: 2, Insightful

    consider what a "music company" is. a tower full of suits running drugola and payola, seeing and being seen in expensive fancy places, and in the case of rap imprints, the odd gangland style shooting in an expensive fancy place. there are a couple dozen A&R guys around signing acts and leading them into the studios to cut "acceptable quality" masters, at the industry's highest rates, on credit against receipts from sales. so big-hit artists start out broker as the record goes higher, due to label-paid publicity tours and the like they have to pay back.

    apple doesn't need any of that. they have an eMarket that is instantly recognized and considered grade-A, they have a track record of paying their artist revenues in full and on time (which the big labels shockingly have never had,) and they have giant media buzz as well as street cred.

    no, apple doesn't need any steenkin' labels. the steenkin' labels need apple. the artists can always re-contract with iTunes music service and be done with big label bullshit. ITMS needs to get an office, phone, and a couple more dealmakers, and the "major record labels" are all dead as doorknobs.

    the artist as their own label, with a distribution network of millions of hits daily... that's what ITMS could be.

    the line forms at One Infinite Loop, please don't block the bus stop as you snake around the block......

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  173. Air Supply? by Anonymous Coward · · Score: 0
    If they cut off the air supply to Itunes, all of that...

    Please Please PLEASE cut Air Supply out of iTunes.

  174. I hope all the record companies pull out by Anonymous Coward · · Score: 0

    Apple will start signing artists. In 10 years music CDs are going to be more antiquated than LPs are now.

  175. Well actually... by boomgopher · · Score: 2, Insightful

    Or better yet, I won't even listen to music anymore. I'm so pissed off and disenchanted with the whole industry I'll just sit and listen to the birds outside my window...or laugh like a brook as it trips and falls over stones on it's way

    The more you create on your own, the broader and better your taste in music/art/etc becomes.

    Fuck the music industry, humanity has created great music for thousands of years without their nonsense..



    --
    Your hybrid is not saving the environment. Its purpose is to make you feel good about buying something.
  176. Why does the RIAA get to decide what iTMS charges by Anonymous Coward · · Score: 1, Insightful

    Apple owns the iTMS. They should be able to decide how much they want to charge for items in their store. The RIAA supplying the songs can accept it or get lost. See WalMart.

  177. This just in... by meadandale · · Score: 5, Insightful
    Having just bought an iPod in the last week and bought my first music in well over 3 years via iTunes I have only this to say to the RIAA and these Music Industry morons:

    Force iTunes out of business and I'll revert to stealing your music.

    Downloads on iTunes aren't cheap. On the contrary, at a buck a song, it is only marginally cheaper to buy music on iTunes (though arguably more convenient). So, with no physical product to produce and distribute, we are being charged almost the same amount as if we go into a store and buy a CD? And you want to charge more?

    What part of 'greedy fscking assholes' don't you understand?

    1. Re:This just in... by EntropyEngine · · Score: 5, Insightful

      Well over here in England, it's quite a lot cheaper to buy music from iTunes than it is to buy from the high street.

      The greed of the music labels really does know no bounds.

      It's just pure greed that they want a slice of iPod sales.

      These people are just parasites feeding off the very entity that saved their collective margins from a razor-thin oblivion.

      Will they ever learn? Of course not.

      I don't see any other alternative than for piracy to rise again and their sales to fall for them to realize the error of their ways. But with their totally blinkered attitude, all that they would do is put on yet more spin on the economics and blame some other nameless / faceless force for their own idiocy...

    2. Re:This just in... by timbloom · · Score: 1

      Before buying an iPod I hadn't bought or stolen music in years. I'm one of those apple fanatics many people ridicule around here. I bought a 1st generation iPod mainly because I was impressed with the technology and the lust factor. After doing so, I've bought more music than I have before in my life, both CDs and apple's DRM'ed .m4p files. I've only upgraded iPods because I want the storage space for files from my job, just recently going over 5GB of music, mainly from Apple Lossless imports from my favorite CD's. If ITMS stopped carrying the artists I like, I'd probably have to start "borrowing" CD's from friends and importing them. DRM can't hurt mainly because if I can hear it, I can capture it. Apple deserves all the money they can make from the iPod, very few people buy ipods so they can buy music from iTMS. It is usually the other way around.

    3. Re:This just in... by TheoMurpse · · Score: 1

      And in impression of an AOL subscriber:

      ME TOO!

      I got an iPod Photo a month ago and if I can't buy music off iTunes anymore, I'll start downloading songs again.

    4. Re:This just in... by tsa · · Score: 1

      It's worse than that. With nthe iTMS, you get lower quality sound (128 kbps). It's not bad, but you can hear that it's not as good as CD. So yes, the RIAA is greedy. What I usually do is buy the music at iTunes, and then grab a copy with better sound quality off the P@P networks.

      --

      -- Cheers!

  178. Durn straight. by jpellino · · Score: 1

    I just exhausted the extras on the re-release DVD of Toy Story. Amazing. It's a brass tacks film school education in a can. Watch the round-the-coffee-table recap of their experiences. Disney was clueless at that time about how to do this. From the looks of the Chicken Little trailer, they still are. Chicken Little's finished trailer looks like the first rough concepts of Toy Story - the ones where you gasp and ask how they ever thought they could succeed with their first ideas. The fact is they didn't really. It's a place to start - you shape it in the directions that succeed and make your eyes light up a little more each time and you ignore everything that doesn't make it a great story and great characters. When Randy Newman calls your rough cut a trainwreck, you forget the fact that Disney Wants It That Way and you reshoot and recut.

    You end up with something that's new and seems familiar - each of the Pixar movies have done that, and it works magic. Chicken Little takes familiar stuff and tries to make it new. The trailer and site - from the beating-us-over-the-head with "Signs" gag to the character names (OK, Ugly Duckling and Turkey Lurkey we remember, but Morkubine Porcupine? You have now officially run out of original ideas.)

    They may have had to drag themselves into the digital age to do all the things they can't do with pen and paint, but they seem to not be able to do this and good story simultaneously. The last worthy Disney animated feature was Lilo & Stitch, before that was Emperor's New Groove. They were new, they were well written and character'd, they were smart and funny and endearing.

    It's all about the story. Long way around - but here's the loop:

    It's all about getting good music into my ears. It;s a new delivery system and player, but it's my good old familiar music. If I can press a button on my screen and minutes later I'm getting Beethoven's Emperor Concerto and Let's Get It Started and Blame The Vain through a Shuffle I have to remind myself I'm carrying, I'll do it and maybe never set foot in a record store again. And 99 cents per experience is a sweet spot for a whole lot of people. Don't screw with the pricing. Make the experience better. If a sales floor full of jewel cases ends up being the next buggy whip shop, I think WalMart will find something to fill the floor space. They always do.

    --
    "Win treats sysadmins better than users. Mac treats users better than sysadmins. Linux treats everyone like sysadmins."
  179. Count de Monet by E8086 · · Score: 2, Insightful

    Let's see...
    The RIAA claims music "piracy" is the great satan costing them billions in profits a year. Enter Steve Jobs, their great savior with a plan to legally distribute their merchandise over the Internet. He has the resources and has seen the light in the attractiveness of the 99c menu. He has software created to work with his company's media player, a good idea for him, the iPod promotes iTunes and supports the legal sale of songs owned by the RIAA. The plan works for years until someone gets greedy and threatens to pull the plug. I'm sure they know an end to iTunes will force people back to "piracy." Since the RIAA knows this, it is safe to conclude that "piracy" really isn't costing them as much as they claim. Now they want some variety in pricing, no not a drop in prices, only price increases. I guess they like suing people because that is soon going to be their main source of income. Remove people's ability to do something legaly and sue them, makes perfect sense.

    --
    F7 doesn't work, ignore spelling and grammar
  180. This is awesome by Anonymous Coward · · Score: 0

    Usually these fight are so one sided. I.E. the RIAA vs. 13 year old. Now we have Jobs, master of the temper tantrum vs. record label CEO's. This is a case of pure greed, but at least this match up could be interesting. IMHO what we need here is someone to figure out a way to turn it into a steel cage match. I would actually pay the PPV fee for that.

  181. How do you spell GREED by BanjoBob · · Score: 1

    RIAA

    --
    Banjo - The more I know about Windoze, the more I love *nix
  182. what, some kind of communist??? by swschrad · · Score: 1

    I have nowhere near ripped my whole CD or vinyl collection, not even close. but I have lots of stuff in my iPod that has not been made availiable for sale, and that is not availiable even on cd. always will be that way. but I do find nice things I lost track of or couldn't afford when they came out on Da Service, and like being able to two-self-divided-click them to my life. (don't want any lawsuits from amazon by using a "one-" in print where others can see it.)

    --
    if this is supposed to be a new economy, how come they still want my old fashioned money?
  183. I'll buy an iPod by Bob9113 · · Score: 1

    I just emailed the following to a friend of mine who works at Apple.

    I've been avoiding buying an iPod because it means I'd have to turn on my Windows machine (something I've avoided entirely in the 3 months since it was handed down to me). However, I'd like to make a pledge, and hope you can pass it up the chain to someone who can get it to the appropriate hands:

    The labels have not earned a share of iPod profits, and they fought digital music tooth and nail. Apple put in the time, research, and manpower to make iTunes work, and negotiated a price with the labels that is fair to the fans, the musicians, Apple, and the labels. Now the labels are using their fiat monopoly to try to steal the wealth Apple is creating.

    If Apple refuses to knuckle under, and any of the four big labels pulls out, I will buy a 60 gig iPod, and turn on my Windows machine (that last part should show how serious I am).

    1. Re:I'll buy an iPod by Anonymous Coward · · Score: 0

      Why not buy and iPod and a Mac mini. That would alleviate the need to turn on that Windows box.

  184. Advertize on iTunes? by phorm · · Score: 1

    Indeed, Apple, with their iPod and iTunes popularity, could probably set up shop to... wait for it... market the artists themselves! If artists go straight to Apple, it cuts out the middleman, saves both a few bucks, and benefits the end-user.

  185. Apple Records by Anonymous Coward · · Score: 0

    Hell..why doens't Apple just start its own freekin label. Maybe they can buy out Apple Records (UK) so that they can use its legendary logo (Beatles). Apple can sign all the happenin talent and maybe not conform to the bullshit corporate music that these pop record companies are shoveling.

    START A NEW MUSIC REVOLUTION!

    This might even put an end to EMO rock...fer gawd sakes save us!!!

  186. Re:Buy the music companies by Salvo · · Score: 1

    I personally have a thing against Technology Companies controlling Content.
    Other than that it is a good idea.
    A Better Idea would be for the Indie Record Companies to rise and Usurp the Recording Behemoths. The Back Catalogue of the Big Companies would still exist, but eventually it would become less and less relevant, and the music of Newer Indie Artists would envelope a larger and larger proportion of the Music Mindshare.
    Let the RIAA dictate less and less of the Music, until their entire Catalogue is relegated to the Bargain Bin.

    You North Americans clamour about a Free Market, but are still lapping up to Popularist Marketing Schemes, rather than promote good quality Local Music. In a Free Market, the only people who can break a Monopoly are the Consumers and the Independent Producers. You can't expect Large Corporations (even those as Altruistic as Apple, Google, Yahoo! and Microsoft) to act in the best interest of Market Diversity.

  187. Headline should read... by Darth+Daver · · Score: 2, Interesting

    "Music Industry Threatens to Commit Suicide"

    I'm sure some artists (Indies) will continue to sell through ITMS, and I already have tens of GB of music. I will listen to that and not purchase a CD unless I like most of the songs and can rip them to my iPod. I had not purchased any new music for years until ITMS came along. I was not stealing it either. I just stopped paying $15 for a CD with one good song.

    My iPod revolutionized how I listened to music I already owned, ripping CDs I had purchased over the years. ITMS got me buying music again. I have purchased 326 songs from ITMS since its inception. That is up from zero per year for several years. If the music industry wants to cut its own throat, I'll let them. Piss on them. I can't stand those greedy bastards. The RIAA and MPAA are some of the worst scumbags on the face of the earth. They have no respect for the rights of others, and they are totally consumed by greed. How many cars and multi-million dollar homes do you need?

  188. What's at stake here? by seven+of+five · · Score: 2, Insightful

    I'm curious about who's running the bigger risk... While ITMS sells a lot of tracks, it doesn't contribute *that* much to Apple's bottom line (5% of revenues is the last I heard).

    The record companies aren't making that much off selling digital tracks either, compared to CD revenues.

    So what's going on is not about the current scene but jockeying for the best position in the long run, assuming that downloads will eventually outstrip CD sales.

  189. Re:I think Apple needs to do a "week without iTune by Anonymous Coward · · Score: 0
    The music industry needs to see what would happen if they kill this cash cow by trying to milk it too hard. One day would probably not be sufficient, so let's have a week, or maybe just 5 days, where you can't buy anything from the iTunes store.
    Why close it down? Just give into RIAA's request .. temporarily. Give them a taste of hell. Raise the price to $5 per song for a week. Then Jobs can tell RIAA: "So, did you like you not making any money for a week, or would you like us to resume selling at $1 per track? If you want us to return to selling at $1 per track, please give me ONE MILLION DOLLARS."
  190. How about this as solution: PIxar Records by dmarcoot · · Score: 1

    That way apple could have its cake and eat it too.
    Pixar isn't beholden to Apple records for non-compete. But if labels pull out, Jobs could create his own label and fill it with artist who jump ship from RIAA and they would get awesome exposure?

    Hell, Jobs could do it alone, he is worth about 3 billion.

    but i dont think thats what Jobs wants, as he wants everything to be easy for his customers to a fault. For people to go to different places to get their music, even if they could get it in a mp3 form, wouldn't make sense to him.

    he would sell iPods at loss to break record companies will before he would allow them to leave his pull. Or he would let Warner leave by itself and eat it.

  191. I hope they do pull the plug. by spiritraveller · · Score: 1

    Then iPod owners will no longer support this absurd DRM scheme. And the whining RIAA can keep complaining that they are losing money from "filesharing", when they are really losing it because they are stupid businesspeople. They just love digging their own grave if it lets them take someone else with them (Apple).

  192. 4th option by ifwm · · Score: 5, Funny

    The finger

  193. Re:The music industry is stupid enough to do this. by Anonymous Coward · · Score: 0

    I believe the RIAA is too used to being able to bully around companies into doing business their way. This isn't going to work with Apple though. Apple has gone toe-to-toe with the ultimate evil empire monopoly and *survived*, Microsoft. Do you think Job's ego is going to say 'Hey, we survived microsoft, but ooooh nooo the RIAA is scary!".

    Goodluck RIAA, you have been screwing artists for 50 years, but this time you fucked with the wrong industry.

  194. Apple could care less by Nicky+G · · Score: 0

    Apple has stated time and time again, in full public record (if they were outright lying, it would be an SEC violation, plain and simple) that the amount of money they make from iTMS is negligible at best. They think of it as a value-added to owning an iPod, but it is not driving revenues. What this means is, Apple is in a COMPLETE position of power when it comes to online music distribution (which they almost completely control, despite it not making them huge money). Only the labels themselves have something to lose, if they stop selling through iTunes. These threats are ridiculous. Why does Apple have any desire to lower prices to 30 cents a track, when the precedent is that ALL tracks are 99 cents each? I think the labels release statements like this purely to generate press, and remind people of their existence (which is likely doomed).

  195. Step it Up! by ripismoney · · Score: 4, Interesting

    The music industry better step it up! If they want to stay afloat, they should allow the 99 for all policy to stay! What is better, getting a little under a dollar per song ($10 for an album), or having everyone just pirate and take it all for free? Actually, if they played their cards right, it would be more profitable to lower the price. I would buy a lot more music if it were less than a dollar. In fact, anything 75 or lower, if I heard it, and didn't think it was terrible, I'd buy it. It's time they started realizing that they work for us. We pay them for entertainment. Well, you know what? Screw them. I can live without legal music. I can live with what I've got, or just acquire music from others. By the way, I do not in any way condone or approve of stealing music. Remember that every time you download a song, God (or Buddha, or whatever) kills a kitten!

    --
    ---Without electricity, we'd all be surfing the net by candlelight.
    1. Re:Step it Up! by Anonymous Coward · · Score: 0

      I'm really not that fond of cats anyway.

    2. Re:Step it Up! by Anonymous Coward · · Score: 0

      Remember that every time you buy a RIAA song, God (or Buddha, or whatever) kills a talented artist!

  196. WMG not TWX by balamw · · Score: 1

    Only one problem with this. We're not talking about TWX, we're taling about WMG. TWX spun off WMG earlier this year. Unlike TWX, WMG is about a $3B revenue company that is losing money, or to be generous is breaking even. They lost $90M in their last reported quarter. B

    1. Re:WMG not TWX by HardCase · · Score: 1

      Good point, but Sony makes up for that in spades.

  197. A George Carlin once said... by bujoojoo · · Score: 1

    "Fuck the fucking fuckers!"

    I think I'll just listen to AM sports talk radio stations from now on...

    --
    This space for rent
  198. Article clarification - not the Warner boss by Infonaut · · Score: 3, Informative
    It seems some of the facts are a bit muddled. The Register posted a similar article which attributed the comment to Warner's Nash. They then issued a correction, stating that the "we'll cut him off" comment was made by Kenneth Hertz, a partner at Goldring Hertz and Lichtenstein LLP. Interestingly enough, GHL represents major recording industry artists, which seems to indicate that the big name artists are still quite happily in bed with the RIAA, all protestations to the contrary.

    I've said it before, and I'll say it again: As long as the big name artists all acquiesce to RIAA control of the music industry, they're complicit. A lot of smaller artists understand that the music industry cartel props up a small number of big name artists at the expense of all other recording artists. Unfortunately these smaller players don't have the clout that the big acts do.

    Millionare recording artists, wake up and smell the coffee! The system that built you up is crumbling at the foundations. It won't be around forever.

    As for the RIAA, the original Reg article indicated that they were feeling full of piss and vinegar supposedly because their profits have been better than expected, and they have a lot of faith in wireless networks to deliver the Next Big Thing in music. Yep, because ringtones are the bellweather of the future and everyone wants to use a cellphone as a music player.

    Morons.

    --
    Read the EFF's Fair Use FAQ
  199. Give the industry what they are asking for. by DrKludge · · Score: 1

    Or rather, Apple should call their bluff and start signing artists/agents directly. Maybe that will put an end to this Music/Movie/Entertainment/Media raquet for once and for all.

    On that note, we don't need new legislation for "new media." The only thing that has changed is how quickly and the granularity of information delivery. Don't support any politician who claims that we need new laws.

  200. iPod is a red herring by gorbachev · · Score: 2, Insightful

    They don't really want a cut of iPod revenues. It's just a negotiation tactic to have leverage when they ask what they really want, which is to have more control over pricing in iTunes.

    --
    In Soviet Russia, I ruled you
  201. what apple should do... by polyp2000 · · Score: 1

    The music industry needs to realise that iTunes - perhaps the most popular legal song trading network. Might actually be beneficial to them.

    In response to this Apple should quit playing fair and its DRM game and just concentrate on selling the thing that makes the money - the iPod. Remove the DRM from the player and add the functionality to play other formats such as ogg.

    Quite frankly Apple shouldnt allow themselves to be bullied like this when they are one of the few legal music distribution networks out there playing fair.

    nick...

    --
    Electronic Music Made Using Linux http://soundcloud.com/polyp
  202. Re:Won't apple have to call it something else? by ScrewMaster · · Score: 1

    Or maybe "iRecs".

    --
    The higher the technology, the sharper that two-edged sword.
  203. Re:I think Apple needs to do a "week without iTune by fermion · · Score: 1
    I wonder why Apple does not do a direct link from CDBaby. There are albums that are no longer in print, but would not be so expensive to keep on disk. The consumer goes to CDBaby, and can be redirected to ITMS. Perhaps even have the option to order cover art for you own case.

    Which brings up a big question. Why are we not doing on demand publishing for CDs?

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  204. Three words for the RIAA... by Anonymous Coward · · Score: 0
  205. Apple can't lose here... by deviator · · Score: 1

    I don't think Apple has anything to lose here. Steve Jobs _shouldn't_ back down because he has the upper hand at the moment. He _won't_ back down because of his ego. So what if Apple's shares are down for a quarter or two while this gets resolved? Apple is not _all_ about the stock price (unlike other companies) and he seems to have a strong sense of what is right for technology & what is right for the industry, regardless of how it may temporarily impact sales.

    Besides, I'm sure they've had contingency plans for this worked out ages ago--the current music industry execs are clearly strictly reactive--they didn't exactly see this coming years ago and now they can only resort to threats and force to try to stop this from changing the status quo. Apple is very different from this--they think, plan, and anticipate things well ahead of the curve.

    1. Re:Apple can't lose here... by Anonymous Coward · · Score: 0

      You don't understand how publically traded companies work. You, by law, ARE about your stock price. You are legally obliged to maximize shareholder profit. If profits are down for a "quarter or two", there will be hell to pay from stockholders. Stockholders don't care about some petty idealism. They want results or there will be heads rolling.

  206. Classic Poker Stance by jav1231 · · Score: 1

    Each side is waiting for the other to blink. My hope and guess is it won't be Jobs. Why should he? You think the RIAA is going to screw with their best / only real online revenue stream? Then again, their suing 12 year old girls, so why not?

  207. FOR FUCK'S SAKE by Soul-Burn666 · · Score: 0, Offtopic

    I HAVE SAID THE OBVIOUS UP THERE. It was there just to show a small point that most people know already, but it's there for those who don't.

    I don't need the fucking karma, others do.
    Try reading at -1, you'd be amazed what informative/insightful posts get modded down on a whim of a moderator, sometimes causing new posters to have negative karma, lose the will to post and stop posting. And by that leaving the forum to old posters that post the same inane jokes and redundant opinions. It's rare to have one that actually SAYS something.

    Seriously, whoever gets to metamoderate my above post, please mod it unfair.
    The moderation system is broken, and the above post proves it.

    --
    ^_^
    1. Re:FOR FUCK'S SAKE by NMZNMZNMZ · · Score: 1

      Good point. /me mods parent up.

  208. Only true at the moment... by 7Prime · · Score: 1

    The only reason why physical CD sales is higher is because it's there, and it's tradition. If tomorrow, your favorite artist (or an artist you've followed for a while) stopped selling CDs and went to digital, I bet you'd get on iTunes and buy it there. Sure, there'll be a few who don't know about iTunes, but also consider this, artists would make something like 65% on their music without a CD distributer, instead of the measily %5 they do now, meaning that even if they held onto 1/13th of their audience (not a problem for an established band with an audience), they wouldn't lose money. Furthermore, even though musicians are humans, they're also artists, and many artists already sacrifice a lot of their money for social causes. I could imagine an artist like R.E.M or Springstein (if those particular musicians weren't already on indy lables that they have good relationships with), jumping at the chance to break loose from the chains of the physical music industry.

    And I agree, Apple should just start their own label, "iMusic Inc." or, "iTunes Records", or be done with it and buy out Apple Records once and for all. There's a lot of money to be had in the music industry, even if you're better to your artists than most companies are, and even if they broke even on a record company, the enormously possitive PR it would generate would easilly sell many iPods. I have no question that they'll start a record company fairly soon, it's only natural since getting their foot into the music market.

    --Eric
    --
    Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
  209. Go Ahead and Do It. Cut them off. by dogfriend · · Score: 2, Interesting
    I like Apple and I use Apple products. But it won't matter that much in the long run if the labels cut Apple off. Apple doesn't make a lot from the iTMS. I will still use my iPod(s) even without the iTMS.

    But how will I get my music? The same way that I get the majority of my music now: Buy Used CDs. No (new) revenue for the labels, no DRM on my music and I am supporting a local business that buys and sells Used CDs. I could use P2P for anything I can't find used, but I really can live without it; I have way more music right now than I have time to listen to.

    One more point: The used CD market really sets the value that I'm willing to pay per song. Most used CDs are available for $6.99 to $7.99 (sometimes even less). So if there are 10 tracks on a CD, they are only really worth $.80 max / track. I may pay $.99 for certain songs if I don't want the whole album, but no way would I pay more than that.

  210. Jobs should set up his own RECORD LABEL. by cheekyboy · · Score: 1

    Call it, iEntertain

    He could with his billions buy a smaller record label for 500-800mill. Then change its structure to be 100% online.
    And give artists 30% not 2%. And start signing up all the majors , get them all to dump the BMC/SONYs/*.*

    He already has a 'movies studio' as such, dumped Disney. He has the balls and guts to stick it up em. And is friends
    with Bill Clinton.

    --
    Liberty freedom are no1, not dicks in suits.
    1. Re:Jobs should set up his own RECORD LABEL. by Halfbaked+Plan · · Score: 1

      He already has a 'movies studio' as such, dumped Disney. He has the balls and guts to stick it up em. And is friends
      with Bill Clinton.


      You were making sense right up there until the end...

      --
      resigned
  211. I don't have a problem with that. by Anonymous Coward · · Score: 1, Funny

    I really don't have a problem with the RIAA shooting themselves in the foot.

    Although, I do sometimes wish they'd aim a bit higher... ;-)

  212. One could only hope - DROP DROP DROP by q256 · · Score: 0

    Hmmm... crap for music - can't sell crap... go after those that can.

    Movie industry is starting to think... hmmmm... put crap on screen - "no make money we do".

    When will the RIAA learn ?

    iTunes is a nice place to buy music, but at $20,000 to fill a 20 gig iPod - NOT !

    How much does it cost to pawn stuff on the iTune store vice pressing Cd(s) / shipping / marketing - pull your head out here guys.

    --
    Once upon a time, a soon to be mommy and daddy loved each other very much (the lust was strong as well as the drinks)
  213. BLOOD I WANT BLOOD! by Anonymous Coward · · Score: 0

    re:"Warner CEO Edgar Bronfman". Anyone think he will fare as well as the CEO now leaving Disney after fucking with Jobs/Pixar (amongst other failings)? I love a good corporate spat, even if the end will be the same. Re-run schmeerun, let's see some BLOOD!

  214. Typical Slashdot Responses. by Adam+Avangelist · · Score: 1

    Obviously the RIAA has the upper hand here. If they wish to charge more for music Apple's Itunes will comply, and if they don't Napster will win our or Yahoo music or someone else.

    Apple's Itunes can't live without the recording industry, the recording industry can live without Itunes and the Ipod.

  215. Who really holds the power? by Anonymous+Brave+Guy · · Score: 1
    That's a nice revenge fantasy, but it misunderstands who has the power. Jobs cut a deal with the devil. Now he's the recordos' bitch: if they walk, he doesn't have anything to vend. Empty iTMS makes Steve a sad, sad honcho.

    Not really. Losing one music publisher from iTMS gets iTMS lots of street cred when they put the inevitable banners up saying why, while shafting that music publisher. Empty iTMS implies that all the music publishers walked at once. While that may make Steve a very upset honcho, he'll be a very upset honcho with just about crystal clear evidence that the major recording studios are engaging in an illegal price-fixing agreement and a whole army of lawyers.

    Of all the battles they could choose to fight, that's the big one the major players in the music industry really, really can't afford to pick. They moment they do, their shares will be down 30% in a day, heads at the top will roll shortly afterwards, and their entire business model will start to collapse under the weight of a legal system that's finally woken up. I'd be very surprised if all of the big studios survived the fall-out, and those that did would be dramatically less powerful afterwards whatever happened. Are they really going to risk opening Pandora's box over a silly little thing like Steve Jobs wanting them not to make even more money from a scheme that's already making a decent profit? I think not.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
  216. Close... by Mr2001 · · Score: 1

    That's like complaining Gillette has a monopoly on Mach-3 razor blades, except that Apple's razor can also use generic blade cartridges. It just can't be used with the proprietary DRM'd WMA blades of the other razor makers.

    Remember, the other razor makers tried to make replacement blades that would fit in Apple's razor, but Apple shut them down with legal threats. And while you can buy generic blade cartridges, they're generally perceived to be poor quality - the only way to get a good shave from your Apple razir without buying Apple's blades is to buy a different proprietary blade and file it down by hand so it'll fit.

    --
    Visual IRC: Fast. Powerful. Free.
    1. Re:Close... by Scudsucker · · Score: 1

      Remember, the other razor makers tried to make replacement blades that would fit in Apple's razor, but Apple shut them down with legal threats.

      Since when did Apple send out legal threats to anyone who released mp3's, wavs, or even unprotected aac's? Those all fit in Apple's "razor" just fine, thank you.

    2. Re:Close... by Mr2001 · · Score: 1

      Since when did Apple send out legal threats to anyone who released mp3's, wavs, or even unprotected aac's? Those all fit in Apple's "razor" just fine, thank you.

      Cute. Apple has threatened those who attempted to distribute music in Apple's DRM format (i.e. Real). Other stores don't want to release unencrypted MP3s, WAVs, or AACs for the same reason Apple doesn't. Sorry, the fact that the iPod can play MP3s doesn't excuse Apple's anti-competitive practices.

      --
      Visual IRC: Fast. Powerful. Free.
    3. Re:Close... by Anonymous Coward · · Score: 0

      Dude, that must be the first time I've heard Apple Lossless (or AAC, or high-bitrate MP3 even) panned as "generally perceived to be poor quality". You really don't know what you're talking about.

      (If you point out that ALE is proprietary, I respond with two points: first, there's an open-source decoder, and second, this in no way invalidates the other perfectly good--in one case, identical to the iTMS format minus the DRM and with higher quality settings available--options.)

    4. Re:Close... by Mr2001 · · Score: 1

      I was referring to the music, not the sound quality. Sorry if that wasn't clear, but hey, it didn't really fit into the razor analogy. ;)

      The major label music that most people want isn't available as MP3s or other open formats - you can buy it in Apple's DRM format or some other store's DRM format. For an iPod owner, the only legal alternatives to buying the tracks from iTMS are buying them in a different format and converting them by hand (filing down the competitor's razor blades) or abandoning your musical tastes.

      --
      Visual IRC: Fast. Powerful. Free.
    5. Re:Close... by ioErr · · Score: 1

      When exactly did Apple threaten Real with legal action? Sure, Real have told their shareholders that there is a risk that Apple might sue them, but that's all I've heard about.

    6. Re:Close... by Mr2001 · · Score: 1
      Apple press release:
      We are stunned that RealNetworks has adopted the tactics and ethics of a
      hacker to break into the iPod(R), and we are investigating the implications of
      their actions under the DMCA and other laws.
      Not exactly the strongest threat ever made, but there you go.
      --
      Visual IRC: Fast. Powerful. Free.
    7. Re:Close... by Scudsucker · · Score: 1

      Apple has threatened those who attempted to distribute music in Apple's DRM format (i.e. Real).

      BFD. It's Apple's format and Apple's player. Until Apple becomes a monopoly in the online store and music player markets, neither you nor Real have any grounds for complaint whatsoever.

      Apple doesn't. Sorry, the fact that the iPod can play MP3s doesn't excuse Apple's anti-competitive practices.

      Sorry, that's utter nonsense. Nothing prevents you from buying an iRiver or a Dell DigitalDJ or a Rio or an mp3 Walkman and buying music from Wal-Marts site or Buymusic.com or Napster or Real or even buying a regular pressed cd and putting it in whatever format you want.

    8. Re:Close... by Mr2001 · · Score: 1

      BFD. It's Apple's format and Apple's player. Until Apple becomes a monopoly in the online store and music player markets, neither you nor Real have any grounds for complaint whatsoever.

      Ridiculous. As a potential customer, I have every right to complain about a vendor whose products lock me in to their other products. I may not be able to sue, but I'm sure as hell not buying an iPod, and neither are my friends or relatives if I have anything to do with it.

      Sorry, that's utter nonsense. Nothing prevents you from buying an iRiver or a Dell DigitalDJ or a Rio or an mp3 Walkman and buying music from Wal-Marts site or Buymusic.com or Napster or Real or even buying a regular pressed cd and putting it in whatever format you want.

      Well, nothing except the DMCA or your contract with those other music stores. Napster's Terms & Conditions, for example, lets you burn CDs but forbids you to "copy, distribute, or transfer the track from that CD to any other media or device". If you're going to disregard that contract, you may as well disregard copyright law too and just get the files from your favorite P2P service.

      Or is your point simply that you can choose not to buy an iPod, and instead get a player that works with more than one music store? Oh boy. You can choose not to get a Windows machine, a diamond ring, cable TV, or a phone line too, but that doesn't mean we should ignore the anticompetitive practices in those industries.

      --
      Visual IRC: Fast. Powerful. Free.
    9. Re:Close... by HTH+NE1 · · Score: 1

      For an iPod owner, the only legal alternatives to buying the tracks from iTMS are buying them in a different format and converting them by hand (filing down the competitor's razor blades)

      Apple provides a tool for this: the iTunes application.

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    10. Re:Close... by Mr2001 · · Score: 1

      iTunes can crack the DRM on files from competing music stores? First time I've heard of that. I don't suppose you have a link?

      --
      Visual IRC: Fast. Powerful. Free.
    11. Re:Close... by HTH+NE1 · · Score: 1

      Not all commercial versions of music sold from stores has DRM. Indeed, most music stores still do not have an online delivery option. I have yet to buy a CD that I could not copy/rip, and rarely do I want to do that.

      Granted, I hate most of what passes as music today. My most recent CD purchase was an import of The Hitchhiker's Guide to the Galaxy, Quintessential Phase.

      But yes, apparently some CD-DRM is vulnerable to being ripped by iTunes, but only if you're using the Mac version which is immune to the embedded .exe malware.

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    12. Re:Close... by Mr2001 · · Score: 1

      Not all commercial versions of music sold from stores has DRM. Indeed, most music stores still do not have an online delivery option. I have yet to buy a CD that I could not copy/rip, and rarely do I want to do that.

      That's hardly an alternative. What if I just want a single track? I can get it for $1 from Apple, get it for $1 from another online store and (perhaps illegally) file off the DRM so it works in my hypothetical iPod, or pay $13 for the CD and then rip it myself. Even if I could find it on a CD single (which is unlikely these days), those still cost at least 5 times as much as downloading the individual track.

      --
      Visual IRC: Fast. Powerful. Free.
    13. Re:Close... by HTH+NE1 · · Score: 1

      What if I just want a single track?

      When did getting just what you want become an entitlement?

      iTMS isn't the only source of music for an iPod. iTunes lets you convert unprotected audio into a format playable on an iPod. Unprotected audio is still abundant and CDs are not the only legal source.

      I've made my point.

      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  217. How to really stick it to the labels by ztirffritz · · Score: 1

    If Apple does get locked out, they could get back at the other labels by creating their own label. Of course they'd have to deal the Apple Records and past legal agreements. But imagine what would happen if Apple said, We'll distribute your album, foot the bill for recording and promoting it, and we'll give you(the artist) 50% of the profit. That would still increase Apple's profits by 45%, and it would increase profits to the artists by about 300%. Even if the iTMS sells a fraction of the volume of conventional CD sales, if the total proceeds are divided between only two parties, those two parties may come out ahead of the game as it stands now. Artists might jump ship left and right. Suddenly Apple controls all the best names and the labels are left with a bunch of worthless CDs that the 14 year old kids consider so obsolete they might as well be 8-track tapes or 78 RPM records.

    --
    Why doesn't anything interesting happen when I have mod points?
    1. Re:How to really stick it to the labels by ln+-sf+head+ass · · Score: 1

      There's not just the issue of Apple Records; Apple most likely signed a non-compete with the labels in order to get access to their inventory.

  218. music today sucks by timmarhy · · Score: 1

    music labels today are all about pumping out one hit wonders and pushing retards like jessica simpson. doesn't it occur to anyone that the reason people like her need to be on tv, is that without seeing her no one would listen to her music.riaa pay to play certain tracks over and over on popular stations, in order to advertise and boost sales. and for that matter noticed how old songs are getting covered more and more often? it's a sign of a music industry in crisis

    --
    If you mod me down, I will become more powerful than you can imagine....
  219. the way i do things by Anonymous Coward · · Score: 0

    Since the recordcos are releasing crap anyways, I get my music like this:

    1. Support my local CD trader shop by searching his online store for a used CD that is in nearly brand-new condition and that costs about 1/4 of what it would at SamGoody. That way, I get the older (better) music I want and I have an instant hard-copy backup should my hard-drive die with all my songs on it.

    2. I search iTMS for what I want, and if they don't have it...

    3. I give up because there's no way I'm paying what the recordcos charge!

    There, nice and simple, and no laws broken!

  220. Ipod gone..possible by Anonymous Coward · · Score: 0

    I think what a lot of people are glazing over is the fact that the shitheads in congress may well make things like Ipods and dvd burners a thing of the past.. With perhaps DRM embedded in the firmware or outlawing this stuff altogether. And now with the supreme court leaning heavily tward the fascist end of the scale, I'm afraid the music industry is going to have quite a few allys in the government, and so don't think an MP3 player is nessessarily a permanent fixture.. It sucks, but you can see it. The government loves it's contributers and if the entertainment industry says jump, you know the feds will.. Just something to think about..

    1. Re:Ipod gone..possible by bombadier_beetle · · Score: 1

      Try being known as "The Senator who outlawed the iPod" and see how your next reelection turns out.

      The genie is out of the bottle, and the RIAA is just going to have to wise up and live with it.

      --

      If you mod me down, I shall become more powerful than you can possibly imagine.
  221. Apple's Cash Reserves by rhh · · Score: 1
    An executive from the Warner Music Group is making threats, Apple could drop WMG or let WMG walk and when WMG's share price drops... Apple buys WMG.

    WMG's market cap is currently $2.75B. Apple could afford a hostile stock take over using cash reserves and still have enough left over to possibly buy the EMI group ($3.4B)

  222. Read Dvorak's article by jocknerd · · Score: 2, Informative

    The RIAA is afraid of Apple. They know in today's world, music labels aren't as necessary. And iTMS may be making them useless. Why should a major act re-sign with a label when they can go straight through iTMS? Dvorak has a great article on it.

    http://www.pcmag.com/article2/0,1895,1862166,00.as p

  223. Spend some on research by networkphantom · · Score: 1

    It is unfortunate that these record industry crusaders don't allocate a small percentage of their yearly litigation budgets to research the price points that tilt the average consumer to the point of piracy. If they could yield certain figures with relevant data, it would make their argument much more powerful when attempting to sway the likes of Apple. At this point they are loud, obnoxious, and baseless in fact.

  224. Re:A lawyer working for Warner said this: MY EARS by catmistake · · Score: 2, Interesting

    Well, in order for the record industry to even function, they need to use my ears to deliver their music to me. I'm not getting paid. I think if the record industry wants to continue to charge for music, that I should get a some reasonable cut of that as my ears are irreplacible assets that they have used for free for long enough.

  225. Eventually RICO laws apply by gelfling · · Score: 1

    Let them raise the prices to the sky. $5 a track, $10, higher. At that point the record companies literally become a racketeering enterprise just like the mafia.

  226. HA by gtx · · Score: 2, Funny

    This post was fucking hilarious and I'm kinda sad I couldn't mod it up.

    --


    "I hope I don't make a mistake and manage to remain a virgin." - Britney Spears
  227. eatme I will never buy musix again ! by Anonymous Coward · · Score: 0

    bitme and who thinks big corp should rule the world ?

  228. Steve Jobs doesn't take threats lightly by Anonymous Coward · · Score: 1, Interesting

    They are playing with fire here, they need to apologize quickly to Apple and act like they never said anything at all. I see a few scenarios that can evolve from this:

    RIAA Wins
    1) Apple bows to the RIAA and begins charging more for songs and sharing profits on devices themselves with them. I find this one the most unlikely to happen.
    2) Apple takes RIAA to court and loses; it's possible, but I doubt they would lose.

    Apple Wins
    3) Apple denies the RIAA, and the RIAA drops Apple's iPOD. Apple starts its own publishing company and uses the iPOD's ubiquitous nature to rake in many artists and privateers. Now the RIAA has a fight on its hands for the domination of the music industry, where before there was only a medium for them to make money.
    4) Apple takes the RIAA to court and wins ruining all possible chances in the future of the RIAA being able to racketeer companies out of their own revenue. And, the settlement would probably require they drop the price per song and/or give Apple even more % of the profits, instead of raising it.

    They should probably be happy with the billions they're already making and not try and ruin a good thing. Steve Jobs doesn't take threats lightly.

  229. tempting, but... no. by Doktor+Memory · · Score: 1

    These deals rarely work out the way you expect them to.

    Sony Electronics corporation bought its way into the music and movie market, and everyone expected that this would mean Sony would apply their technology muscle and hustle to bring content to new markets faster.

    But instead, the opposite happened: the hollywood side of Sony ate the rest of the company like a cancer. It's common knowledge among ex-SEL people that Sony had a "digital walkman" product ready to ship at least a year before the iPod, but that Sony Music's execs strangled it in the crib. It's said that Nobuyuki Idei still has to take sleeping pills because the sound of Steve Jobs cackling keeps him awake at night. But hey, Tommy Mottola got to do Mariah Carey on that big boardroom table from "Wall Street", so you win some and you lose some.

    More seriously here: the problem is that music labels make INSANE amounts of money, and once you've acquired one, it's really, really, really hard to argue with the business practices of a PROFIT CENTER. Plus, even if you're a complete maniac like Steve Jobs and are personally willing to swing the axe around once you've acquired a major label... you can't do it, because a music label is, in the end, comprised of nothing but very canny salesmen with very expensively cultivated rolodexes, and if you make them uncomfortable, they will leave... and take their rolodexes with them. Then all you have in hand is a bunch of worthless contracted artists that nobody expected to get a second album out of in the first place, and nothing in the pipeline to replace them. Oh, and a very large bill for Cristal, Moet and cocaine. And some very pissed-off shareholders.

    Apple has to play the cards in their own hand. Which, luckily for them, are pretty damn strong: hence Bronfman and Nash whining like pussies in the national press.

    --

    News for Nerds. Stuff that Matters? Like hell.

  230. They're on the other side of the world... by Create+an+Account · · Score: 1

    They're on the other side of the world so it comes out backwards sometimes.

  231. What this is about. by Doktor+Memory · · Score: 1

    ...if very few people buy music from digital downloads according to this suit, then what the FUCK do these guys care what price Apple sells their music at?

    Jake Gittes: I just want to know what you're worth. Over ten million?
    Noah Cross: Oh my, yes.
    Jake Gittes: Why are you doing it? How much better can you eat? What can you buy that you can't already afford?
    Noah Cross: The future, Mr. Gittes, the future.


    (Forget it, Jake. It's Chinatown...)

    --

    News for Nerds. Stuff that Matters? Like hell.

  232. So they pull out, so what? Let them. by microcars · · Score: 2, Insightful
    They pull out because Apple wouldn't allow them to Charge More

    Fine

    So now what happens?

    They have to pull the same stunt on every other joint that is distributing music on-line, Rhapsody, Napster, the Windows Music box or whatever they will call it, Wal-Mart, etc etc

    So all of a sudden no more 99 songs at ITMS and the price is $1.99 everywhere else!
    And the subscription prices will probably Double! How many people will just CANCEL their subscription services?

    Guess who loses? (you already know)

    Oh, and if they pull this on Wal-Mart, they'll just pull the plug, Wal-Mart won't play along.

    --
    I like microcars
  233. Shoot them in the face. It's more fun that way... by Anonymous Coward · · Score: 2, Insightful
    ...do what you must but please don't support these labels.

    And so for the first time today, we are introducing two new features to iTunes. First we will be introducing RIAA Radar labels on all tunes listed in the iTunes application. If the copyright of the song belongs to an RIAA member it can be flagged and will be by default... Just so you know who loves you ;-) The second feature is by far much more important. We will be introducing collaborative filtering at the iTunes Music Store. You see, the labels have left us no choice here. They won't let us sell you the music you know you like, so we'll help you find music that you'll love but you didn't even know existed." < cuts to new iPod commercial with steamroller driving over massive piles of CDs to the tune of We're Not Friends>

    The labels believed that once one company forged a path, everyone else would follow leaving them king of their little fiefdom. Unfortunately for them, Apple was more like an ice breaker in the Arctic. They made their own path and the sea froze behind them. I was of the opinion that they were trying to kill iTunes because they see it as a genuine threat. After reading this article, I am convinced the labels are genuinely too stupid to realize their extremely precarious position. This is, in fact, not a strategy to kill iTunes because of the threat it presents. This is just greed. They really are that stupid. Too bad they don't see the end coming. It'll be like they've been shot in the back of the head. No crys of "Please, please don't kill me! I'll do anything you want! Just don't *BANG*" kind of thing you'd get if you shot them in the face. It's a shame too, because they really deserve to be shot in the face.

    There will be no labels for new music soon. Bands will go direct to fans through iTunes, keeping the copyrights to their creations, and making six times the profit margin the old labels would have paid them. They will make the same money going 'gold' as they would have going 'platinum' the old way. You are witnessing a turning point in music history. Music is about to become very diverse and interesting again. Get ready for something besides the same old cookie cutter 'alternative' crap you've been hearing for the last 15 years.

  234. Screw that, bypass by SuperKendall · · Score: 1

    Boycott? Boycotts are for idiots because they DO NOT WORK. You need a rational and slightly guilty party on the receiving end of a boycott for it to take effect, not the insane wankers in the music biz. They already have shown they care nothing for how much money they loose due to stances they take.

    Want to institute REAL change? If the studios back out keep selling indie stuff on ITMS for $.10 a track, then proceed to ship every computer with iP2P (and let Windows users download it as well). Ahh, P2P made easy for the masses. That would be sticking it to the man in places the sun dont shine.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  235. Apple should become a record label. by Anonymous Coward · · Score: 0

    Maybe Apple should turn into a record company and split the profits 50/50 with the artists them selves...

    Aren't traditional record companies becoming/already obsolete?

    Everyones got a home studio to a certain extent anyway... Imagine what kind of home studio a Rock Star would have...Hire an engineer. DIY... unlimited freedom of creativity. Apple bought Logic Audio....iTunes for ultimate distribution. Seems like its not long before something like this happens.

    Record Companies realize the are going out like the dinosaurs.... and fast. The MIddle man is no longer nessessary.

  236. 2 Ways apple can get around them by Anonymous Coward · · Score: 0

    1) Endorse piracy outright if the industry does this.
    2) Wait for the talents contracts to expire with the labels. Apple becomes the next music producer/distributor they already are/can be by directly going to the artists. They start producing their own labels, maybe with a influx of cash from MS and or Google the AMG Cartel/label. So your out of the whole back catalog of songs controlled by the old labels but everything from that date on is yours and theirs, Apple etal has the catalog from there on out along with all the artists with a direct input to the distribution of their music. Old industry withers up and dies while thinking wtf did we screw that up for. pp

  237. Two birds with one stone by briancnorton · · Score: 1

    Well I can happily say that I would be just fine with both Apple and the music industry being destroyed. Both put out mediocre yet overpriced products, and take every opportunity to tighten their stranglehold on their own customers. They both fight innovaton and litigate against their own customers. Yes I'd be just fine with their collapse, but I'm also not holding my breath.

    --

    People who think they know everything really piss off those of us that actually do.

  238. I'm starting not to care anymore by boredofthesane · · Score: 1

    Seriously, I do not care anymore. Crazy? Perhaps! Pick up a guitar and learn how to play your own music. We'll get a hell of a lot better music out there with more people playing then the current slop that's out there. That is, until they start figuring out how to make us start paying to write our own songs. =P

  239. Dear record companies, by stickyc · · Score: 1

    If you choose to not make your music available on iTunes, I will not stop using iTunes. I will just stop paying for your music... again. Sincerely, Joe Consumer

    1. Re:Dear record companies, by klang · · Score: 1

      Actually, what I will do, is "not buy your music from iTunes and just download it from a newsgroup. I will not stop playing, just stop paying."

  240. Hey Warner, iPod works with MP3 by skingers6894 · · Score: 1

    You know iPod works with MP3 too. Good old fashioned, grab from and play.

    iPod has over 80% of the player market.

    You might like to think about that before removing your only avenue for a DRMed version of your product that works with iPod.

  241. THATS IT!!! by rolandog · · Score: 1

    The Artists should publish their recordings, and set up a PayPal account to receive donations. We could cut off that way most of the recording company's revenues and still get the cash to our favorite bands.

  242. Neat post (was Re:don't blink, Apple) by Laebshade · · Score: 1

    Neat post, but that last part will never happen. At least, not until Apple Records no longer holds the Apple trademark, which by the way is still involved in litigation with Apple.

  243. back to www.allofmp3.com by Anonymous Coward · · Score: 0

    fine.. F the RIAA.. after spending 2k in the last year at itunes for the music I want, I guess i'll have to revert back to using questionable services.

  244. I bought my iPod years before iTMS Canada launched by aristotle-dude · · Score: 1
    I guess I can go back to buying one CD every three years or so and downloading off newgroups. I've bought more music in the past year from iTMS Canada than I have for the past 15 years in the form of CD's. As the article pointed out, people like me are buying music from iTMS because we have iPods already and because the store offers consistent pricing and end usage rights. It follows the KISS principle. Apparently these execs do not understand the KISS principle.

    Pull the plug and on iTMS and I'll pull the plug on your revenue. You will not see a dime from me. Have fun on the unemployment line when sales tank.

    --
    Jesus was a compassionate social conservative who called individuals to sin no more.
  245. Amazing... by altruizine · · Score: 1

    Apple Sells music over iTunes.

    Slashdot Response:
    "Bah, I'm just going to steal music anyway! Total device lock-in, the iPod is monopolistic! $.99 is too much! Why not $.50, I would buy it then! iTMS just doesn't work for me as a concept. Apple is greedy."

    Steve Jobs tells Record Labels he refuses to increase the price.

    Slashdot Response:
    "iPod is fantastic. $.99 is the perfect price point, any more and I will steal. iTMS works great. Labels are greedy, apple gets such a small cut!"

    ahh.. slashdot.

  246. Re:Won't apple have to call it something else? by wahsapa · · Score: 1

    or maybe they can just buy Apple Records...

  247. Cut out the middleman by Anonymous Coward · · Score: 0

    Exactly what value does the "recording industry" now add to the transaction between musicians and consumers? Time for Steve to start signing bands.

  248. Apple so has them by the balls by amichalo · · Score: 1

    The thing is, Music execs would be more willing to go through with cutting Apple off (and rightly so, I mean the music _should_ have variable pricing relative to market demand) but Apple so has them by the balls.

    If the music companies stop suppling Apple with their tunes, Apple will issue a statement that "due to the demands of the record companies to increase pricing beyond $0.99 per song, foobar has not renued their contract." People would go ape shit. Some would certainly start poycotting Foobar Records all together. Others would vow to only download illegally and music Foobar Records ever puts out just to "show 'em".

    The only possibility I see is that they insist on the ability to lower prices, not raise them. That would win over the hearts and minds of the people. But then Apple might just call them on it and go along.

    It's a no win situation for Foobar Records.

    --
    I only came here to do two things; kick some ass, and drink some beer...looks like we're almost out of beer.
  249. MS Influence? by Anonymous Coward · · Score: 0

    Any correlation? September 21, 2005: "Recent reports have claimed it [Warner Brothers] may sell a stake in AOL to Microsoft." http://news.bbc.co.uk/2/hi/business/4268864.stm September 23, 2005: "Bronfman Fires Back at Apple" http://www.redherring.com/Article.aspx?a=13702&hed =Bronfman+Fires+Back+at+Apple Maybe... maybe not.

  250. Copyright by simpl3x · · Score: 2, Interesting

    I have stated several times that I buy CDs, burn them and ditch the shell. I get called a thief, yet I am not a thief. Simply a copyright abuser. And, this is why. How can I buy music from services who may not exist in a couple of years?

    Copyright also gives me the right to copy something at a lower resolution as a copy--fair use--regardless of what happens to the original. Dear RIAA, go f yourself.

  251. time for Apple to become a record label by MonkeyBoy369i · · Score: 1

    Apple should work with some famous artists and form their own record label. Imagine the marketing potential... then Apple can charge what ever they want, just to upset Warner and the RIAA. I'm sure U2 and a few others would like to play that game.

  252. Let them pull the plug.... by 56ksucks · · Score: 1

    And all those people who decided it was worth it to pay $.99 for a song can go back to bearshare and get them for free again.

    --

    ---- "Excuse me. Where's the children's gun section?"

  253. Why i cant download music? by Anonymous Coward · · Score: 0

    Why cant I download music from such paysites such as iTunes and oters and get the song in Ogg Vorbis format?

    Do I have to pay for all songs on iTunes?
    Cant I easy find and download from less-known artists or copyleft artists for free?

    If I buy many songs from iTunes cant I get an discount or a free song for every 10 songs I buy?

  254. How about some royalty-free music? by Francisco_G · · Score: 1
  255. A compromise... by Anonymous Coward · · Score: 0

    If they want more $$$, give us Lossless!

    A compromise so simple, it's guarantied it'll never happen!

    (This assumes that this is all about $$$, not control as most of us believe...)

    May I suggest a solution that could possibly make *everyone* happy? Users, Jobs, and the record labels alike?

    If they (record labels) were talking $1.50 for *lossless* tracks.. I could see myself buying that.. If they want to charge more than $0.99/ea for some tracks, offer the pre-release and top 10 songs in loossless for $1.50/ea. Offer the same songs at the current 128bit aac, for $0.99/ea.

    I would see that as a fair compromise. They get their $1.50/ea for some tracks.. we get the choice of high quality or same old $0.99/ea price.

    Hell for a lossless recording of the CMT Outlaws concert, or a few Jimmy Buffett concerts.. I'd go as high as $1.99/ea.. (as long as I can still buy the songs ala carte.. )

    Lossless box-sets would also be a nice offering... include some exclusive videos (not available on MTV, VH1, the local video store, etc) ... I wouldn't mind having the choice between a box set that cost aprox $0.99/ea track and the same box set in lossless that cost $1.50/ea - $1.99/ea track... Choice is good.

    It's so simple, they'll never do it. ;-)

    But it does seem like the kind of compromise that everyone could be happy with... If it were really about the $$$... It isn't, it's about control.. of the money.. They already make more off each iTunes sale than they do from wholesale CD sales (per unit).. They get about $0.70 off each track Apple sells.. No material costs, no shipping costs, no warehousing... They should be offering Jobs their 1st born and shuting the Hell up, if they were smart.. if it were about the $$$... It's not.. it's about the fear that sooner or later, artists won't sign with record labels.. they'll sign with Apple. They want enough control that they can keep that from happening.

    If it were just the immediate income/profits right now, and the near future, they'd be much more quiet than this...

    Just my $0.02.. Or is that $1.50?

  256. Online Radios? by DimGeo · · Score: 1

    There are quite a few online radios playing my favourite kind of music (trance), so maybe you can also find something like this to enjoy. A few months back while I was still in Norway, and connection speeds were decent, I enjoyed listening to one of those stations all the time. The music was varied and it was all good. No fees, just whatever you pay for your broadband.

  257. Contract law? by slickwillie · · Score: 1

    At the risk of being here too little/too late, a day late/dollar short, and a little bit drunk, but didn't Jobs sign any contracts with the music industry calling for the pricing of the music?

  258. Production Company by kd5ujz · · Score: 1

    They seem to do alright with commercials, if the RIAA pulls this bullshit, I would LOVE to see Apple start a production company, and cut the RIAA out entirely. This is VERY wishfull thinking,but it is what I would do.

    --
    -William
    God is everything science has yet to explain.
  259. An entire industry forcing a price on one business by ninejaguar · · Score: 1
    Hmm...Smells familiar. Doesn't appear to be very market driven, does it? Seems capitalism is only good for the goose, and not the gander. Music execs are the dregs of the corporate world. It's ridiculous to expect any better behavior from them.

    = 9J =

  260. If they pull out, they can forget my business by MikeYPK · · Score: 1

    Believe it or not, I have actually never burnt any illegal CDs, or downloaded music from an illegal site. I am however a very happy iTunes customer. If Warner Bros. pull the plug in iTunes selling their music, they can forget about earning my money, as it's unlikely I'll go back to a retail store and buying a CD there again. Like most on the site, considering the music companies have minimal distribution costs for music on iTunes, I have little sympathy for what is essentially transparent greed. Actually, considering how CD's are *CHEAPER* to produce than tapes, it also seems amazing that CD's sell for more than tapes (at the same time, I can't argue with supply and demand). It's amazing how some of the big media companies have resisted many of the most lucrative new technology to come along (video tapes anyone?). They just don't know when they have got it good.

  261. RIAA was tricked by rtechie · · Score: 2, Interesting

    ITunes is proof that Steve Jobs is both brilliant and a fantastic liar.

    See, the Big 5 are deathly afraid of suffering from the "MTV syndrome" when it comes to digital downloads. See, originally music videos were seen as an interesting way to promote and "package" artists which proved incredibly sucessful through the 80's and early 90's through the partnership of the big labels and MTV, which initally was desperate for content for it's PAID service, then they switched to an advertising model with the videos as content, and the station took off. Eventually of course, the MTV people realized that the videos THEMSELVES were advertisements and started charging for airplay (no payola laws for music videos afaik). The labels didn't like being held hostage this way and it's one of the big reasons for the decline of actual music videos on MTV and MTV2.

    iTunes was sold to the Big 5 essentially as an experimental system for devoted Mac fans. The software would ONLY run on Macs and the iPod (which would only work with Macs). This was a critical sales point because the Big 5's other major concern was widespread piracy of digital music tracks (not that that wasn't happening already). The Big 5 recognized that Apple is a relatively small player in the PC space so that even if their DRM protection was cracked, if the software/player only worked on Macs there couldn't be THAT much piracy since only a relatively small market used Macs. They also didn't have to worry about the "MTV syndrome" because incompatibility with Windows, Linux, and other big MP3 player vendors (Rio, Creative, etc.) would keep iTunes confined to a niche market.

    Hasn't turned out that way has it?

  262. Apple should start its own music label by Anonymous Coward · · Score: 0

    And cut out those greedy bastards.

    Seriously, an artist-friendly innovative company like Apple would be a natural for music artists to flock to.

    It would be awesome if Apple could buy Apple records.

  263. Jury Duty by harvey+the+nerd · · Score: 1
    "I have a friend"

    Should he ever be on a jury in an extortion-infringement case, RIAA and its bootlicks may find "preponderance of evidence" somewhat of a burden - closely related to the immovable object. Voir dire? Forget it, you won't see him coming, your lawyers will beg for him. (Well, usually both sides do...). And afterwards, you may not even find the fingerprints on the bulge growing between your shoulder blades.

  264. RIAA is out of control. Time for change by Anonymous Coward · · Score: 0

    The RIAA is getting way, way, way out of control.
    We need to send them a message directly to where it hurts the most.

    No more CD's will be bought by me and I would like to see a website
    to spread the latest information on what the RIAA is doing and spread
    the message of not buying music off of CD's.

    I am not advocating piracy, but if you need to buy music, buy it off EBAY
    or from a friend. Make the RIAA pay, that is the only way they will learn.

  265. Vote with your consumer dollar by Anonymous Coward · · Score: 1, Interesting
    Use this site to determine if your money will be going to the RIAA next time you buy music:

    http://www.magnetbox.com/riaa/

    I've been RIAA free for over four years now, and believe me, there's precious little out there from RIAA represented musicians that you can't live without (as in none.) On the other hand, there is a TON of excellent, heartfelt, meaningful music out there not represented by the RIAA. I hope everyone here complaining about the RIAA is putting their money where their mouth is and not supporting a group whose policies you disagree with.

  266. This is similar to the UK postal service by Peter_JS_Blue · · Score: 1
    A few years ago, I heard that the UK postal service realised that they were losing out to people sending emails instead of sending letters. So like any other old-school organisation on the receiving end of a new, disruptive technology, they demanded some kind of compensation from every email sent. Needless to say, it did not happen, they re-organised and are doing fine as far as I know.

    It seems to me that the RIAA are in the same situation but with one major difference - we will always need to send stuff via the postal service but who will be buying music on physical media in say 10 years ?? - none I would bet. No wonder the RIAA are sounding so desperate. The music industry could have seen the Internet as a wonderful new opportunity and started a world-class online music industry but instead we find them suing little old ladies, 13 year old girls and starting a "Jihad" against any new technology.

    I think, deep down, they know they will be totally irrelevant in 10 years and are simply playing for time.

    They are just paying the price for their astonishing lack of vision.

    --
    Art Makers Just an excuse to show photos of naked women !!
  267. Steve makes a call... by shyfabian · · Score: 2, Funny

    Hi Bill, Steve here. Say, I know we've had a few differences in the past but how would you like to OWN THE FUCKING MUSIC INDUSTRY with me. I'll spin off iTunes into joint venture that we'll share and you and your $27.87 Billion will be used for financial backing. I have the disturbution you've got the cash to burn. And, hey, calling it itunes means apple records(assholes) can't sue me any longer.

  268. Re:The music industry is stupid enough to do this. by Ulrich+Hobelmann · · Score: 1

    If just one music company cancels the deal on Apple, then it will lose lots of revenue compared to all the other labels, plus customers won't be too happy (and the artists on that label!).

    But even if all labels would quit iTunes, that would be *incredibly* stupid. How much money does a label make on selling one CD, with high-cost distribution? And how much do they make on selling it on iTunes, even if Apple shaves off a couple of cents?

    This whole complaining that iTunes is too cheap is pure rip-off planning.

  269. Re:I just wish it wasn't necessary to have all the by Deadguy2322 · · Score: 0

    If the Liberal party stays in power much longer, you'll only be able to get "approved in Canada" art and media. Anything else would damage our national identity and weaken our culture.

    --
    Check out my foes list to see who is so retarded that they can't use the signature line!!!
  270. Musicians: Let Apple & Co publish your work. by Anonymous Coward · · Score: 0

    Well I'm a musician (never signed anything with any recording company though) and am currently in the process of making an album with a band that used to be on a large, Manchester based, British "independent" label.

    When it's finished we'll be pressing and publishing some CDs ourselves and I think we'll also go direct to Apple and see if they want to sell in in iTunes. This is a far better business model to me than dealing with the major labels who will always try to to mould you into "product" (thereby killing off any inspiration you may have). I can only hope that many other artists will do the same.

    Fuck the recording "industry". They're now irrelvant and their mafia protection racket behaviour is there for all the world to see. In these days of the internet any band potentially has direct access to the entire population of the wired up world. Who needs some crappy pimp in a suit taking huge cuts from your efforts ?

    Anyone still buying "product" from the major labels should stop now. You might as well be giving your money to the mafia/the IRA/Al Qaeda/"Giblo the child strangler" etc.

  271. Jobs, stand up by ashyanbhog · · Score: 0

    RIAA members have probably realised that they are no longer needed in the music food chain. Any good artist can get his song recorded at the a studio and put it up at itunes. Consumers will pay and download, if they think the song is good, This is what is pissing RIAA MBAs off, they will probably shout for sometime and then negotiaite with Jobs to continue with 99c, but on the condition that he will not sell music from independent labels and artists. In short, they want to maintain the monopoly they had for so many years..... Using precisly two words lets tell them, what we think -- "F&$k off" -- This showdown will tell us what stuff Jobs is made off...

  272. Well, Apple could go along with it.... by gevantry · · Score: 2, Interesting

    I certainly hope Apple will resist the effort at corporate blackmail on the part of RIAA members. It does own its own sizeable chunk of recording rights, which it bought a couple of years ago for a few cool billions, and I'm sure that 600,000 title catalog has gown.

    However, in Japan Apple did ultimately cave-in on the matter of variable pricing. The Japanese labels refused to budge, and Apple wanted to get that iTMS Japan store going. The tunes it sells are roughly at parity with the prices charged at other Japanese download stores. iTMS is still, however, wildly more popular than any other store here, which has Sony frothing.

    It would be interesting to see if iTMS could implement a model similar to that used by AllOfMp3.com (but with no doubt watever as to legality).

    The prevelant wisdom here, that Apple has the labels by the royal jewels, is wrong, though. These people have incredibly deep pockets, collectively far deeper than Apple's, and could quite easily weather an losses in revue incurred if dropped by iTMS. There are still plenty of other download services that they sell through.

    The issue is whether Apple feels spunky enough to be a maverick, kiss the the big labels good-bye (and along with them the major acts), and risk making a go with smaller labels and independent artists. If it is, then it can deal with the labels on its own terms by simply ignoring them. The recording industry as represented by RIAA members is just one--admitedly very large--dimension among many. As it has demonstrated its fortitude in being a maverick computer company, bucking the odds in a more-or-less Microsoft/Windows universe, so might it equally succeed with music.

    The other thread of wisdom, that the buying public will cheer at this Apple toughness, is also a bit too optimistic. Most of the downloading public doesn't give a mouse fart in a hurricane. They want their popular tunes, and it doesn't matter that few folks here think most of that popular stuff is shite. Call them Philistines if you wish, but they buy the music that's popular.

    Someone else has noted here that the real issue is control of distribution, and there of pricing and who gets the lion's share of profit. This is entirely the case: RIAA members see their distribution networks under threat if not under seige, and they are willing to dig in and take whatever immediate financial losses may be incurred to assure their longrange control of the distribution network. Control of that in turn assures that they can charge whatever they wish.

    So the further question facing Apple is whether the iPod would continue to be a hot seller if the major labels were out of the picture, and if th iPod would continue to drive music sales for alternative independent arts and small labels.

  273. ahem by Doktor+Memory · · Score: 1

    I did read the date of the article -- that's really, honestly, truly the last update on the situation.

    The wheels of the court system grind really slowly, especially when the issue under consideration is a highly contentious piece of international trademark and contract litigation between two exceedingly well-funded companies that are ill-inclined to settle. The discovery phase of the trial alone could take years, and in this case almost certainly has.

    (You'd think that the SCO-vs-Linux thing has been dragging on since 2003 would have clued people here in about this, but apparently not.)

    --

    News for Nerds. Stuff that Matters? Like hell.

    1. Re:ahem by Anonymous Coward · · Score: 0

      in that case, I apologize (don't feel like logging in right now, but yeah this is iceanfire)

  274. Encourage artists to defy by Anonymous Coward · · Score: 0

    Jobs should encourage artist to defy the RIAA and demand that their music sold on iTunes. The artists have the power, if they would only stop sucking the RIAA balls.

  275. Re:The music industry is stupid enough to do this. by bhamm · · Score: 1

    Having observed their behavior in the past, I fully believe that the music industry really believes that they are doing Apple a favor and that they can cut Apple off. If they close iTunes, iPod users will just rip their own music (and share it) leaving 0 revenue.

    I think you're exactly right. I refuse to pay more than $0.99 per track. The minute the labels begin messing with that number.. i'm done with them.. permanently. They can choose to continue receiving thousands of my dollars, or they can choose to see none of it. Since the iTMS store opened i've bought over 3000 tracks.. i don't buy discs anymore. I support the ITMS model because it works. I vote with my wallet to tell the labels (and Apple) that they/somebody findally got it right. If the labels reward that support by trying to extort me.. fuck 'em.. everything stops. I wont get angry and throw a fit about it, i'll just stop buying. I'll remove the store icon from iTunes, and get all of my music from Usenet, or from ripping friends/family CDs. Their response to this over the next couple months will decide their fate with me. I don't care anymore which way it goes.. really, i'm tired of it.

  276. Re: Slashdot EeziPost (TM) ...gee,that was Eezi! by CrankyOG · · Score: 1

    X] Another: [ ] Dupe [X] Apple iTunes Article [X] WTF [ ] $editor is a dork

    [ ] Frist psot [ ] link to GNAA [ ] Link to goatse [ ] $random_drivel

    [X] I Haven't RTFA, but... $random_opinionated_comment

    [ ] Slashdotted already!. I bet their server runs on $topic_item too

    [ ] Soul_sucking registration required

    [ ] Mod Parent [ ] up [ ] Down

    [X] Fsck: [ ] SCO [ ] Micro$oft [ ] DMCA [ ] DRM [ ] MPAA [X] RIAA [ ] Google [ ] Bush [ ] You all

    [ ] I for one welcome our new $topic_item overlords

    [ ] Imagine a beowulf cluster of those

    [ ] In Soviet Russia, $topic_item owns you!

    [ ] Meh!

    [ ] Netcraft confirms $topic_item is: [ ] dead [ ] dying

    [ ] But have the inventors thought of what will happen if $random_amateur_insight

    [ ] Once again the USA is clamping down on my [ ] Amendment rights.

    [ ] You insensitive clod

    [X] But people who download music from P2P networks are more likely to buy the album

    [ ] Cue DVD Jon-type crack in 3..2..1

    [ ] Torrent, anyone?



    [ ] Clever Sig [X] Lame Sig

    --
    [ ]Clever sig [X]Lame sig
  277. Pixar label by austad · · Score: 2, Interesting

    There are many comments here about Apple starting their own label, and how they can't right now because of the Apple Records lawsuit. Why not leverage the Pixar name and start a label under that? Promise the artists something insane, like a 70% cut of all sales on it for switching from a RIAA label to Pixar. We already know that artists are getting some insanely low 1-2% cut, or even lower in some cases now. If they buyout their contract, or fulfill the contract by releasing the remainder of their albums, there is nothing to stop them from moving.

    Apple/Pixar are currently in a perfect position to really shake things up in the Music industry, and if I were any of the major labels, I'd be really careful not to piss off Jobs. The only thing the labels are bringing to the table right now is their contracts with artists, and if Apple owns their own label and those contracts expire, there could be plenty of incentive for artists to give the finger to RIAA labels and switch over.

    Online music distribution is where everything is currently heading, I would venture to guess that purchasing a CD in 10 years from a retailer will be next to impossible. I also think that it is in Apple's best interest to form their own label (or buyout Apple Records) and use that to distribute their music. If the big moneymaking artists signed with the dinosaur labels start leaving and going with another label that treats them right, those labels will be screwed. It's a realistic situation, and it's going to happen at some point (even if it's not with Apple).

    Another thought on this, the label could not initially rely on online distribution only. They need to have some way for people to buy their albums at traditional retailers. Do they print and press CD's and distribute them, or do they use some of the on demand CD duplication technologies that are out there? It certainly would be nice to be able to walk into a store, select 10 different songs from 10 different albums, hit Print and have a CD with a nice printed cover in my hand in a couple of minutes. Not only does this provide some novelty and convenience, but it greatly increases the amount of different music that a retailer sells. I know when I go into Target and look for something that's not mainstream, I can't find it. Having a Kiosk like this would be able to provide me with literally everything I was looking for (since it would be connected to the net and have full access to the iTunes music store library).

    --
    Need Free Juniper/NetScreen Support? JuniperForum
  278. Look out world! by chia_monkey · · Score: 1

    Uh oh!

    Looks like members of the RIAA and other music industry execs have mod points. Zoiks!

    --

    "He uses statistics as a drunken man uses lampposts...for support rather than illumination." - Andrew Lang
  279. Renting music by Caldair · · Score: 1
    Paying for something, being allowed to listen to it, not being allowed to keep it, and the person you got it from being allowed to change the rules for its further use*... Sounds, as far as I can tell, like renting. I wouldn't be interested in that, especially not at roughly the same price as I'd buy a cd**, I don't think too many others would either, and I guess someone figured that out and decided to call it "buying" anyway.

    *No, it's not retroactive, unless you suddenly have to pay more for the time you've already used it, or something like that. The original deal can be that you can play the music on five computers, and then they change that to three so on two of the computers you've copied it to it doesn't work anymore, but that means that you can only play the music on three computers from now on. It doesn't mean that you never heard the song on those two computers.
    **Which I stopped doing years ago anyway, when the price touched 30USD (in Norway), but hey...

  280. Counterstrike by Anonymous Coward · · Score: 0

    They'd rather not piss off Steve Jobs too much! If the Labels really pull the plug on iTMS, an appropriate answer would be to seamlessly integrate a P2P client into the next version of iTunes just the way iTMS is integrated now. (Or, a little more elegant: Creating a hook for iTunes *plugins* and let other people to do the dirty work...)

  281. A cut of iPod sales.... by rdean400 · · Score: 2, Informative

    would be like a cut of every CD player, tape player, or record player sold. If the RIAA doesn't get a cut of those, then it obviously shouldn't get a cut of iPod.

    It is also an insipid argument that their digital downloads made the iPod. It is completely bass-ackwards to the real truth. There were digital music players, and even digital music stores, before iPod/iTMS. It wasn't until Apple made it simple to buy music that digital downloads took off.

    The RIAA labels really show how they feel about Intellectual Property with this move. "What's ours is ours, and anything ours touches is ours."

  282. Forget about Pixar... by bennomatic · · Score: 1
    It might be smarter just to spin off the iTunes product/store into its own company with its own P/L base. It wouldn't be impossible to do, and as long as it doesn't have the Apple name, there is no reason that it couldn't become its own label as well.

    This might even resolve the conflict with Apple Music to the point that they agree to release the Beatles collection, prompting millions of dollars in (re)sales overnight!

    --
    The CB App. What's your 20?
  283. PLEASE MOD PARENT AS TROLL! by pressman · · Score: 1

    If you're going to make statements like this, please back it up with facts and not opinion.

    --
    Pooty tweet
  284. Woot! by mijohnst · · Score: 1

    Go Steve! Kick those greedy bastards in the balls!

  285. Let 'm crawl ... by Cipher9 · · Score: 1

    Simple, shut ITMS down for a year, lets see 'm crawling back when they realize the hughe drop in profit they already get ...

  286. Make their own label by xombo · · Score: 1

    Apple needs to just make their own music label. They have the stockpiled cash and the means of distribution to do it. Just put the whole damn record industry out of business and see if they cry to work for Apple in 5 years.

    1. Re:Make their own label by Anonymous Coward · · Score: 0

      Actually, they should just crack open the piggy bank and take out whataver it takes to buy Apple Records outright. That would settle those pesky lawsuits, and then they'd have a functional record label from the start. All that would be left would be to start signing artists.

      They should also offer legal assistance to any artists who'd like to find a loophole to help them escape from their current contracts with RIAA members... poaching a few high-profile, profitable artists would put a nice hurt on those greedy RIAA fucks.

  287. itunes by xero2099 · · Score: 1

    i always thought that a buck a song was resaonable, if it gets raised that means the record companies are beeing greedy, its still costs you the same to dl an entire album vs buying i in the store, i would think the companies would preffer the dl due to the fact they save $$ by not having to put music to media

    --
    --I am still wating to be impressed--
  288. Buy USED Cd's. They don't get a dime. by Kodack · · Score: 1

    New CD is purchased. Store gets their cut, recording company and artist get their cuts. Used CD is purchased. Store gets their cut. If you want a legal way to buy music without dumping more $$ into the greedy hands of the recording corporations then buy used music. They make an initial profit on the disk when it's new. But every time it is re-sold it's denying them a sale and dammit that feels good.

  289. Re:So they pull out, so what? Let them. by The+One+and+Only · · Score: 1

    Oh, and if they pull this on Wal-Mart, they'll just pull the plug, Wal-Mart won't play along.

    So the solution to corporate assholery is....corporate assholery?

    --
    In Repressive Burma, it's not just your connection that dies. slashdot.org/comments.pl?sid=314547&cid=20819199
  290. 'Lost' producers threaten to stop filming... by Nindukugga · · Score: 1

    if Sony, Toshiba, Philips... don't agree to split their revenues from their TV sets, VCRs and DVD recorders. Sheeeesh!!!

  291. Re:classic example (nit pick) by MORTAR_COMBAT! · · Score: 1

    Pushing the issue will just force people back onto p2p networks, and with the RIAA/MPAA crusade to have them shut down - its only going to spawn the next-generation of p2p networks sooner.

    Using the word "force" here I disagree with. Nobody forces anyone to listen to any music -- well, outside of the whole Noriega siege. What I mean is, people would still have the choice of copyright infringement downloads, legal downloads, and/or no downloads.

    --
    MORTAR COMBAT!
  292. Amazon.com by Merdalors · · Score: 1
    Amazon dot fucking com, motherfucker

    That's not quite the point: a good music store has expert staff who can advise, recommend, let you hear stuff you've never heard of, and tell you why Maria Callas' O mio babbino caro is better than Leontyne Price's.

    --
    Slashdot entertains. Windows pays the mortgage.
    1. Re:Amazon.com by Anonymous Coward · · Score: 0

      Hell, i doubt that i live within 93 million miles of a store like that... (I do live on earth)

  293. Re: Lick Me by briancnorton · · Score: 1
    Ok, facts.

    1a) Apple has sued a multitude of fan sites for distributing information ahead of schedule.
    1b) The RIAA has sued fans, (many with no facts to back up their case) for activity that, while likely illegal certainly fits in a legal grey area at the moment.

    2a) Apple has a long and tragic history of half-baked products and recalls of defective or just plain crappy parts. (laptop batteries, ipod batteries, ipod screens, superdrives, etc. They have alienated their developers and driven just about everybody off the platform except themselves.
    2b) Te music industry put out a constrant stream of low-quality products. Yes this is my opinion, but declining sales and concert attendance can be interpreted as market agreement.

    3) Apple computers routinely cost 1.5 - 2 x as much as a comparable PC, and have a library that is tragically limited in scope. They use their "monopoly" over their niche to charge premium prices. 3b)The record company has inflated prices far faster than inflation for no reason other than that they can and nobody is competing with them.

    Sure, there is a healthy dose of opinion here, but I like to think that I'm not off on some wild tangent where a reasonable person can't follow.

    --

    People who think they know everything really piss off those of us that actually do.

  294. Re: Lick Me by pressman · · Score: 1

    That's a much better argument than what you originally posted. I still don't agree on most of it, but at least it's more than a kneejerk reaction which the original post was.

    The signal to noise ration on /. is so high that the only way to make reading it bearable is to read intelligently written stuff rather than the old "Mac's suck, they're too expensive, they're abusing they're "monopoly" to inflate prices (which is patently wrong by the way. economies of scale is all I have to say)... yada yada yada." Go ahead, dislike Apple all you want. If you're going to post how much you hate them, at least put some thought into it like you did this last time.

    --
    Pooty tweet
  295. $$ Envy by mkiwi · · Score: 1
    Steve Jobs is worth well over a billion dollars, and he is used to getting his way. Name an exec who has as much money as Mr. Steve? Maybe Paris Hilton, but if that is the face of the RIAA I would rather keep my dick out of it.

    Steve's Money > Record Exec's Money

    Steve's Karma > > RIAA karma

    What I want to see record companies do is film Paris Hilton having sex with all different kinds of iPods. That might make them more money than saying, "Screw you Steve- I'm going home."

  296. Don't laugh now but ... by Anonymous Coward · · Score: 0

    ... in Sweden they do.

    More specifically there's a "tax" on blank media such as harddrives and blank compact discs that goes directly to the recording industry.

    1. Re:Don't laugh now but ... by canadianlinuxnerd · · Score: 1

      In Canada we have this type of Levie to, the money is collected by the Government and is in theory paid directly to artists (in fsct the application process is so difficult and the pay outs so small that most of the money goes unclaimed and s deposited in general revenue). For this reason the courts have ruled and parliment has yet to legislate against that it is legal to download music.

  297. Gracias by xtracto · · Score: 1

    =o)

    -----

    --
    Ubuntu is an African word meaning 'I can't configure Debian'
  298. Gracias! by xtracto · · Score: 1

    And BTW:
    In Spanish you just say "ganar por negocio" you do not use the preposition "a".

    Cheers,

    Omar

    --
    Ubuntu is an African word meaning 'I can't configure Debian'
    1. Re:Gracias! by Paradise+Pete · · Score: 1
      In Spanish you just say "ganar por negocio" you do not use the preposition "a"

      Thanks. I thought about it when I wrote it, and wasn't sure. It sounded more "complete" with the a. I have about five years of Spanish, and still have a lot to learn.

    2. Re:Gracias! by xtracto · · Score: 1

      Well, it was just me being pedantic, your Spanish is excellent :).

      --
      Ubuntu is an African word meaning 'I can't configure Debian'
    3. Re:Gracias! by Paradise+Pete · · Score: 1
      Well, it was just me being pedantic, your Spanish is excellent :).

      Well, thanks. I don't have any formal training though, so there are some pretty big gaps. And I really did appreciate you telling me about the a.

  299. Obligatory Pink Floyd quote by Phreakiture · · Score: 1

    (excluding of course any hint of rebelling against the publishers profits)

    Now I've always had a deep respect
    And I mean that most sincerely
    The band is just fantastic, that is really what I think
    Oh, by the way, which one's Pink?

    Tell me that is not rebelling against the publisher? The sarcasm drips thick off of that song. (For the unfamiliar, the song is Have a Cigar from the album Wish You Were Here

    --
    www.wavefront-av.com
  300. Well, I guess... by XnR'rn · · Score: 0

    They'd build their own, but they're not into blackjack and hookers. :>

  301. Re:The music industry is stupid enough to do this. by vortmax · · Score: 1

    We had this at o ne time. It was called mymp3.com.

    Artists uploads mp3's of their work and had links to where to buy, news on the artist, etc. It worked great until they were bought up.

  302. Time for Corporations to Unionize by Bruha · · Score: 1

    The music industry would be singing a new tune if Wal-Mart & Apple said our price or no sales. CD/DVD sales are 1% of Wal-Mart's profits so they could care less, and have already used that stance to gain favorable pricing from labels.

    I've been able to buy things on opening day from walmart cheaper than best buy.

  303. Record players, TVs, reel-to-reel, etc... by Evil_Idiot · · Score: 1

    Do FM stations get a piece of every FM radio sold? Using this logic, they should.