Music Labels Charge Too Much For Microsoft

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."

Comments

Yahoo!

[duerra]

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?

Wrong question

[Mr. Underbridge]

" 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?"

It'll Never Happen

[fragmentate]

...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...

I root for the little guy

[LunaticTippy]

It's strange to see microsoft in a relatively powerless position.

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

It's already affecting Itunes

[bl968]

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.

Re:It's already affecting Itunes

[Tsiangkun]

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.

This is how long they'll push

[Red Flayer]

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.

Re:This is how long they'll push

[Overly Critical Guy]

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.

Re:When..

[Karma_fucker_sucker]

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.

Dvorak correct?

[BKuhl]

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...

Re:Music Industry?

[cosinezero]

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...

The real question

[Queer Boy]

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...

Re:Never thought I'd ever say this, but...

[nine-times]

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.