Costly Music Store Coming to Cellphones
Carl Bialik from the WSJ writes "The new Sprint Music Store is the first legal music downloading service you can access right from a cellphone, and Wall Street Journal tech columnist Walt Mossberg gives high marks to the interface, download speed and playback quality. But he criticizes the 'stratospheric new price for the legal download of a single song: $2.50.' Sprint justifies the price because of the convenience and usability of its store. Mossberg responds, 'I believe something else is at work here: a lethal combination of two industries many consumers believe typically charge too much. One is the bumbling record industry, which has been seeking to raise prices in the fledgling legal downloading market even as it continues to bleed from free, illegal downloading. The other is the cellphone carriers, or, as I like to call them, "the Soviet ministries," which too often treat their customers as captive and refuse to allow open competition for services they offer over their networks.'"
Does this line mean that Zonk went to the WSJ and cut-n-pasted this article into slashdot as though someone submitted it, or did someone from the WSJ actually submit this to slashdot?
Either way, I'm not sure I like the precedent. (Seeing as how WSJ is subscription-based.)
My other car is first.
When you think about the ridiculous prices people pay for ringtones it's not that crazy. So maybe it'll work for the songs that you just HAVE to have right now, but otherwise why wouldn't you save a few dollars and just wait till you're home and get onto the iTunes store?
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The other is the cellphone carriers, or, as I like to call them, "the Soviet ministries," which too often treat their customers as captive and refuse to allow open competition for services they offer over their networks."
Should be The other is the U.S. cellphone carriers... since competition works and takes care of this in all other markets.
In Sweden downloadable music for cellphones is 9 cents (0.69 Swedish Crona) per song from ComvIQ.
Second: No-one outside the U.S. will ever buy music just for their cell phones. Everyone over here uses SonyEricssons excellent K750 or W800i , syncing them with iTunes and MacOSX using scripts like iTMW or apps like Dreamsicle.
Third: I bet a case of beer that SonyEricsson will include iTunes in their cell phones during 2006. The demand is huge and they know they will have to do it, sooner or later. Nokia will also include iTunes as soon as they realize how Real sucks bigtime.
Am I the only one who sees this statement as falsely implying that all free downloads are ilelgal as opposed to those not authorized by the copyright holder/on works in the public domain, or is it just me?
If you believe in privacy, and believe you have "nothing to hide" at the same time, you're a goddammed idiot
This type of high pricing is increasing the copying of music and other illegal activities ..... if these songs are priced properly then i think it will help in stopping piracy.
i work for money, if u want loyalty, Go get a Dog.
is that the plan might actually work. I mean, on a per minute basis, it is actually a better deal than ring tones. Who is buying this stuff and why are they buying it I have no idea. Where's Darwin when you need him?
Consumers will determine if the 2.50 is a lot of money for a song. Many consumers decided that forking $2+ for a ringtone was well worth it.
Okay, the occasional ringtone someone has to have, I can see someone paying for.
But to listen to half-assed quality tunes on a device not made for that and probably sucks the batterylife of said device, I don't see this thing suceeding in pulling in regular customers to make decent revenue.
Who'd pay 1-1/2 times iTunes price? Which is already overpriced considering what I can get some used CDs for on amazon.com or ebay or half.com, etcetera.
That's only half the price of a ringtone!!!!
This might be the first in the US... but its miles from being the first available elsewhere in the world. Usually the US is a mobile backwater that lags the rest of the world by around 2 years or so, in this case its around about that mark again.
Japan and Europe have had legal download services for a significant amount of time either via 3rd parties or more recently directly, when it was being talked of as "what is next" in this market.
So like Sprint now do NFL, Europe has been doing Football (Soccer) goals for 3-4 years. TV on your mobile... yup got that... loads of crappy shit you never want... got that... and you'll be getting it soon.
Its expensive over in Europe too against iTunes et al, but that is down to the "convenience" factor (and normally lower quality) of the mobile downloads.
But "first"? Not by a long chalk.
An Eye for an Eye will make the whole world blind - Gandhi
People who use ringtones deserve to pay too much.
In the context of Doc Searls' interesting essay about communications carriers in general, this is called bundling and it's a classic example of vendor-lockin.
Sprint couldn't just give you decent Internet access and have you go out onto a competitive net and find your own music vendor. They have to try to tie you to their own over priced service. To many carriers, a free and openly competitive Internet puts puts them out of the game by reducing them to what they really are -- nothing more than carriers. Expect more of this in the future.
As the mad scientist laughed, the lightning gave life to the creature.
- It's alive, Igor, it's alive...
- What is it, master?
- My greatest and most evil creation. Behold...
RIAA' BELL! *THUNDER*
$2.50 per download. When a cd costs about $12 - $18. That means even for a cd with 10 tracks, the cost is $25. So, they lower their distribution cost to almost nothing and raise the price?!?!?! This is crazy. If they want people to not download the songs for free, why don't they make it affordable. If they charged a reasonable fee (like $0.25 per download, people would download songs like hotcakes around the world). Imagine the worldwide market of say 1 billion internet users and rising as opposed to the few people who will actually download this stuff.
No Sigs!
The extortion I face when it comes time to add any content to my phone is the primary reason I'm dumping T-Mobile in January.
My Sidekick 2 has been quite useful to me, but the damn thing is locked down hard and T-Mobile rarely even updates the content catalog, while not even offering the same broad selection that they provide to every other phone they sell. SK2 users don't get T-Zones. We get a literal handful of tracks/message alerts, 90% of which are ghetto. By "ghetto" I mean for example, the following is virtually all of the alerts they offer:
"Baby Girl You Got"
"Attention All Pimps"
"Baby Mother"
"Message Dog"
"Check Yo Messages Cuzz"
"Massage Message"
"Only Pimps Get 40 Or More Messages"
"Paging The Pimp On Premesis"
"Remind Ya Playa"
"What Time Is It Playa"
"You Supposed To?"
"Pimp To Da Strip"
While the music section is 90% rap/r&b.
When it comes to applications, you can count on 3 new apps/games every few months.
I find it pretty insulting and rather pointless. It wouldn't be too hard for them to offer more, and more varied offerings, but they have resisted the considerable pressure to do so. If you are going to lock it down, at least give me something worth buying.
The Sidekick 2 is horribly out of date anyway. It's been almost a year and a half since the hardware was refreshed, and nothing is on the horizon. I don't really want to spent $400 on a replacement, but I'm not going to sign up for another year of being spoon-fed content on an obsolete phone. I know companies will charge whatever the market will bear, but I think that there is a large section of the market outsde of the "Teenagers and college students living off of Mom and Dad's wallet" that feels a bit neglected.
nobody's going to use this service because the truth is that people don't want their music player inside of their cell phone. cell phones are more often than not tied to the service because of 2 year contracts, and they are disposable trash to most people, whereas people want to keep their MP3 players for a long time (they cost more than CD players, hold more music, so they should last longer)
of course, since the nano came out, it'd probably be just better to tape the nano to the back of a normal cell phone that just makes phone calls. you probably wouldn't tell the size difference anyway. then you could have a real music player and a real phone instead of a compromise.
companies seem to hold this myth near and dear that having multiple devices is always inconvenient.
...when dealing with monopolies.
Copyright creates one such monopoly. Since marginal cost is nil, marginal revenue alone controls pricing; as opposed to the efficient pricing based on the intersection supply and demand. This basically means that the prices will be whatever rich kids with the most disposable income will pay, and the rest of us can go to hell.
Since D.I.Y. production is ever more feasible, and the joy of creating music negates any costs to making music, it's obvious that the efficient, market clearing price for music is free.
"Sprint justifies the price because of the convenience and usability of its store."
In other words, folks, NOBODY BUYS MUSIC! They pay for the CONVENIENCE of accessing what they view as FREE music!
Sprint's price will prove to be too high, of course - the sweet spot has already been demonstrated by Apple to be "under a dollar".
But the point has now been made by a major corporation - NOBODY BUYS MUSIC!
The only reason people spend money for music is the CONVENIENCE. Only for the few decades when there was no ability to record music at home - i.e., during the early days of phonograph records and no tape recorders - did people EVER PAY for music. They paid to LISTEN to music - not the same thing at all! They paid to go to concerts, or clubs, or wherever an artist was performing.
People will pay for a performance by a live person since they know people don't work for free.
People will also pay for an object that lets them listen to music wherever and whenever they want - whether that's a cassette recording off the radio, or a ripped CD on an iPod.
But they will NOT pay for music itself!
Get a clue, music industry and artists! Change your business model!
Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
When you think about the ridiculous prices people pay for ringtones it's not that crazy.
They pay this because cell phones are set up to be a closed platform, so that people can't transfer ring tones onto them. If people could just copy audio to them as easily as they do with a computer, there'd be no market -- there are *masses* of excellent, free, downloadable alert sounds for computers.
The cell phone providers don't want to be *data transfer providers*, as ISPs are -- you pay us $N, you get M amount of data each month, and your software can do whatever you want. That's a competitive market, and much less money is involved.
I'd love to see regulation out there that requires cell providers to allow *any* device (open platforms, maybe something running Linux, whatever) to connect to their network on a flat service rate, or metered based *only* on data provided. The current system is reminicent of the Bell hardwired telephone monopoly back before Bell was made to open up their phone system to any phone devices, as long as those devices didn't disrupt the network.
The fact that SMSes are more expensive than voice data on a typical US plan, for example, is absurd. This kind of screwball valuation only happens in the presence of a seriously non-free market. The incentive should be to use the loose-latency-requirements, low-bandwidth-required SMSes.
I'm one of a tiny handful of people that just won't buy a cell phone because of the fact that cells are magic black boxes run by a monopoly -- I want to be able to write (and download) my *own* alarm clock/scheduler/voicemail/etc stuff, without paying "application-level fees" to the cell provider.
Any program relying on (nontrivial) preemptive multithreading will be buggy.
The experience I've had pushing j2me apps to Carriers is they are extremely detatched from the technical capabilities that their networks support, and are driven by marketing people who barely know how to use email and are focused on getting teenagers to dl crap that daddy will pay for.
Back in 1984 (how appropriate), evil Judge Greene dismantled the AT&T monopoly. Instead of a benevolent Ma Bell guiding hapless consumers through an ever-more complex world, we entered an area of free-for-all market. Ma Bell was split into 6 entities. Suddenly, there were multiple telecom providers! Phones sold in stores instead of rented! Competition! Falling prices! Granted, the USA then experienced an unprecedented telecom boom. But telecom stock went into the crapper.
For almost two decades, this orgy of consumer felicity continued unabatted. Then, fortunately, the Clinton administration issued the 1996 Telecom Act, which watered down Greene's edict and allowed a wave of mergers to take place in the telecom industry.
Now, only two telecom companies remain, having absorbed all the baby Bells. We are finally seeing prices climb and customer service go back into the abysses where it belongs. But it was a long, hard road.
(Yes, it was sarcasm. Thanks for noticing).
--
Mad science! Robots! Underwear! Cute girls! Full comic online! http://www.girlgeniusonline.com/
No, silly capitalist feminine weeny man. In Soviet Russia, music downloads you!
This story reminds me of why I very recently left Sprint for a less painful cell phone company. I lived in Nebraska when I got my first phone, and Sprint was the big kid on the block. However, the crippled phone, horrible customer service, and nickle-and-dime tactics made made me only stick with them because they were the best of a sad lot. After moving to Chicago last year, I dropped them and moved to T-Mobile. Wow was I impressed - the bluetooth features on my phone weren't crippled, they have an almost realistic developer community, they don't try to charge you to add your own pieces to the hardware you bought. I suppose Sprint will pick up some people from this for the same reason they got me (they are the only ones doing it right now), but I'm also sure somebody else will do something like this in a more realistic way soon enough (if people want it).
I, however, don't see any need for such a service.
Posted from the wireless couch.
Think about it for a second. People are spending insane amounts of money on what? Ringtones. They're paying at least $1.50 for a credit, and all they get is a MIDI copy. Spend two credits and yes, you can get the real audio sample, but it's still only a sample, not the whole song. That's around $3 for a twenty second clip if you're lucky. When you think about that for a moment, $2.50 doesn't really seem all that demonic.
Then you take into account what your network charges you to be online and downloading, and the ringtone becomes relatively cheap again. Know what? It's all way too expensive, and should be avoided until prices normalize (when the RIAA/MPAA gets their heads out of their collective arses).
Blog Prophyts - Right On, Man
-Well ...only one in one thousand !
-Let's see : $2.50 x (# customers) / 1000 .....Hey! it's profitable !
-Let's go for it...
What stops you using a different device?
Unavailability of compatible "different devices" in the United States, perhaps? I've looked but failed to find any providers with decent coverage in the United States that advertise SIM-only plans or any place to buy a SIM-less GSM phone in the United States.
"Playa" (PLAH-yah) == dry lakebed.
"Playa" (PLEY-yuh) == eye dialect for non-rhotic pronunciation of "player", slang for one who maintains multiple sexual relationships.
That pricing model is insane. If the average CD has 10 songs, it will cost me $25 to download a CD worth of songs. But what's more crazy, is that people are going to do it. And what's even crazier than that, is that the record companies are going to use it to go back on Apple and say "we are selling tunes for $2.50 through Sprint, this is irrefutable proof that you need to raise your prices." In reality, it proves nothing except that people are stupid and don't realize what they are spending until they get their bill at the end of the month.
Personally, I have a hard time justifying spending 99 cents on a track through iTunes. It's not that I cannot afford it, it's just the principle behind it. Basically I'm giving 2 or 3 cents (best case) to the actual artist, while a bunch of greedy bastards get rich by screwing the very people that keep them in business (both consumers and artists). This has been gone over a million times here before, so there's not really any need to explain this further.
I haven't purchased a CD in roughly 3 years. I listen to satellite radio, and I go to shows when the artists I like are in town. BTW, satellite radio is a great way to find excellent artists that are not signed with RIAA labels.
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