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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.
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.
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]
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.
^_^
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
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.
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.