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Music Labels Charge Too Much For Microsoft

Posted by Zonk on from the i-share-microsoft's-opinion dept.

Bret540 writes "Yahoo is reporting that Microsoft has ended license talks with four major music labels. From the article: 'The paper [the Wall Street Journal] reported negotiations broke down Friday over what Microsoft considered high royalty rates.' How much more can the music labels demand when even Microsoft won't go to market? With other recent developments, one must wonder how long the music industry can keep pushing."

16 of 366 comments (clear)

  1. Yahoo! by duerra · · Score: 4, Interesting

    They say that the current subscription services are being charged in the %6-8/month range, which is what was being offered to Microsoft. If this is true, how is it that Yahoo! can afford such a low subscription rate?

    --
    A community-oriented lyrics site
  2. Wrong question by Mr.+Underbridge · · Score: 4, Interesting
    " How much more can the music labels demand when even Microsoft won't go to market?"

    That's not it. More like, "how much more of the cut is MS demanding (compared to others in the market) that the RIAA won't do it?"

    And,

    "How long is MS willing to let Apple own music before they realize that the music itself is a loss-leader?"

  3. Wow, MS does the right thing? by glomph · · Score: 3, Interesting

    Hard to believe, but they have agreed with His Steveness, and told the cartel to stuff it. Takes one monopolist to know another, or an oligopoly, at least.

  4. It'll Never Happen by fragmentate · · Score: 5, Interesting

    ...one must wonder how long the music industry can keep pushing.

    Indefinitely?

    The majority of people are ignorant to these demands. The only informed people are the ones that follow the blogs, and news sites (like /.); last I knew, I don't think /. had readership on the scale necessary to effect change.

    The answer is a simple one to state, but a difficult one to implement. While media is completely different from every product in that it is possible to reproduce (copy) it, I also believe it's longevity implies copies should be permitted. Let's look at CD's, even if you take care of them they wear out. You didn't buy the CD for the plastic disk, you bought it for the music on the plastic disk. Compare that to say, a TV, when it dies, it dies, you have to buy a new one, period. You can't copy it. On the other hand, you didn't purchase what you're going to watch on the TV. And you can't blame the TV's or their manufacturers for crappy TV stations. The TV manufacturers have to make the TV last longer or the reputation is at stake. They can store music on a low quality media, and get away with making you buy it repeatedly... so the media and the music can both suck, and you're screwed.

    The point is everything the music industry is involved in revolves around greed, plain and simple. You don't believe there was some greedy bastard at each of the record labels wringing his hands in glee when he realized the recurring income from worn out CD's?

    Stop buying it. Or stop bitching about it.

    That's what we have to do, present company included...

    --
    My ZooLoo
  5. I root for the little guy by LunaticTippy · · Score: 5, Interesting
    It's strange to see microsoft in a relatively powerless position.

    I'm not sure how to feel about this situation.

    --
    Man, you really need that seminar!
  6. When.. by aero2600-5 · · Score: 3, Interesting

    This is just my two cents, but I belive the music industry executives to be complete and total morons. When will they realize that people will not continue to buy your product when you're overcharging? This is basic economics. If a dairy wanted to charge $20 for a gallon of milk, do you think anyone would buy it? No. There are better ways to support the artist than buying their music. Steal the music, go to their concerts, but their t-shirts.

    And here's a hint to the music industry: Collective Licensing. You will continue to be forced to lower your royalties until you reach this.
    Voluntary Collective Licensing

    Your time as the bully is over.

    Aero

    --
    Please stop hurting America -- Jon Stewart
    1. Re:When.. by Karma_fucker_sucker · · Score: 4, Interesting
      Steal the music,...

      Oh, please no. That'll just give them (RIAA, record companies) ammo for the legislatures that there needs to be more DRM, they need more laws to allow them invade our machines, more laws allowing for all of those stupid lawsuits that they're filing, it gives an excuse as to why their sales are declining - regardless if it's true or not, and more that is not coming to me, now.

      Lastly, it's just wrong. I wouldn't like it if you did that to me regardless of how noble your intentions are.

      --
      Evil people don't think they're evil. - George Lucas, Making of Ep III
    2. Re:When.. by dwandy · · Score: 3, Interesting

      Sadly they're not total morons ... perhaps idiot savants.
      Music (art in general) is a human thing that exists without the riaa, without a compensation model, and has existed for all of the history of mankind, and will exist to the end of the human race.
      There is no other monopoly ('cept maybe food...maybe!) other than music that is guaranteed by humanity.
      The telephone company (the original modern monopoly?) is not even guaranteed an income - but those that can monetize music are guaranteed an income. If you haven't read Eben Moglen's thoughts on all this look him up... For me he answered the big compensation question.
      Sadly it's not the riaa that's stupid - it's us for buying their particular music.
      I agree with many others on /. - the answer is to STOP SUPPORTING THE RIAA and purchase/support independent artists.
      It won't happen over nite, but when they no longer control the market, the big artists will no longer be signed with them...

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
  7. It's already affecting Itunes by bl968 · · Score: 4, Interesting

    While not the biggest fan of on-line music I have occasionally bought albums via iTunes. However 9.99 is the max I am willing to pay for any downloadable album. So I have skipped four albums in the last two weeks due to their pricing being higher ranging from 13.99 to 19.99 for the downloadable album. That works out to $39.96 in lost sales if you work it out using my max price. Why do they think we are fool enough to pay as much for a downloaded album as we would for a complete packaged CD. I also notified Apple of my decision and why so they could use it as ammunition in their fight against the labels. I am waiting for the price fixing lawsuit and the abuse of copyright claims against the recording labels. Maybe one day. I know I am a dreamer.

    --
    "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
    1. Re:It's already affecting Itunes by Tsiangkun · · Score: 4, Interesting

      Exactly.

      I can go to $USED_CD_STORE and buy $ALBUM used for $3.99-$9.99. I walk outside, sit on the curb and rip it to my powerbook in a higher bit rate than the downloadable version. Three minutes later, I walk back into the store and sell the disc back for $2.50.

      I'm not going to pay $14, $15, .. $25 for a digital album.

  8. This is how long they'll push by Red+Flayer · · Score: 5, Interesting

    The recording companies will push as long and as hard as they can -- they'll pause when someone pushes back.

    Only by continually testing the line will they be able to determine how much the market will bear, which is how they determine their prices. MS breaking off negotiations is a negotiating tactic in itself -- MS has communicated to the recording companies that they are demanding too much.

    Wait a month or two, the recording industry will come down in price, and both sides will have a deal they are content with.

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    1. Re:This is how long they'll push by Overly+Critical+Guy · · Score: 5, Interesting

      The recording companies will push as long and as hard as they can -- they'll pause when someone pushes back.

      That just might be Apple. With CD sales down again this year and Apple owning 82% of the online market along with a Christmas-slaying iPod nano and rumors of a slimmer fifth-generation hard-drive iPod coming later this month, Steve Jobs really has little to be afraid of from these guys. If they pull out of the iTunes Music Store, people will still be gobbling up iPods, and they'll just be filling them with pirated music instead. Jobs knows this, and so do the labels...they're just making a public fuss after realizing they're losing decades of control they once had over music distribution, all because they waited and waited and waited, and so Apple just strolled along and legitimized it without them.

      --
      "Sufferin' succotash."
  9. Dvorak correct? by BKuhl · · Score: 4, Interesting

    With developments like these I am begining to think that Dvorak may be on to something in his latest PCMag.com article.

    http://pcmag.com/article2/0,1895,1862166,00.asp

    It certainly seems that the record companies are deliberately trying to sink online music sales...

  10. Re:Music Industry? by cosinezero · · Score: 5, Interesting

    No, I'm sorry... I'm a dj, a musician, and date a girl who worked for years at world-famous nightclub. The music industry as a whole is inherently evil. Those people break violate contracts in a week than microsoft does in a year...

  11. The real question by Queer+Boy · · Score: 4, Interesting

    The real question is when Apple or Microsoft will start/buy their own music label. Sounds easier to me than trying to negotiate with any cartel...

    --
    Not since Marie-Antoinette played milkmaid has looking simple and honest been so fake and complicated.
  12. Re:Never thought I'd ever say this, but... by nine-times · · Score: 5, Interesting
    How about the equally unlikely, "three cheers for the RIAA!" for keeping Microsoft out of the music business? With all the knack Microsoft has for leveraging their monopolies, I don't want anyone in control of the content delivery, the content format, AND the device the content plays on, all by making deals with a monopoly that controls the content production.

    It's a bit disconcerting when it's Apple. It'd be downright frightening if it's Microsoft.