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Google Music Store Inches Closer?

smallguy78 writes "Forbes is once again reporting on Google plans to launch its own competitor to iTunes, a Google music store. From the article: 'The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services.'" We have touched on this subject previously. This most recent report would seem to indicate the launch will happen sooner rather than later.

52 of 282 comments (clear)

  1. Google's first serious misstep? by yagu · · Score: 5, Insightful

    From the Fine Article:

    "The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services," wrote the analyst in a recent report.

    One of two things has to give here: either the music industry's unhappiness is sustained because Google has enough principle to do on-line music equitably (which, by definition will be unhappiness for the music industry); or Google capitulates and in the process violates their "Do No Evil" credo.

    This could be a misstep for Google if they appear to be in the pockets of an increasingly strident and miserable music industry. Please let them do the right thing.

    Of course, for the gazillionth time, the only right way to do this is unencumbered media. Hey, I can hope.

    1. Re:Google's first serious misstep? by koweja · · Score: 3, Funny

      Or Google can simply use the pricing model that they think will make the most money, even if that means doing what the industry wants. Google does what they want, Apple does what they want. Then we find out who is right and who is dead.

    2. Re:Google's first serious misstep? by Pieroxy · · Score: 5, Insightful

      I see this as a great opportunity. But Google will only ever have the same leverage that Apple has over the Majors. What we really need, is Google (or another well-publicized company) to become a music label. They have the guts to do their own promotion, they can distribute non-DRM stuff and they can easily attract existing well-known artists with attractive deals.

      This IMO is the only short-term hope against the majors.

      Basically, we need a Good Guy (TM) with deep pockets to raise a middle finger to the majors.

      However, I fear this is not going to happen anytime soon.

      --
      XviD review

    3. Re:Google's first serious misstep? by BewireNomali · · Score: 4, Interesting

      what is it with the childlike obsession wih the "do no evil" credo? It's kind of absurd.

      if you have a gmail account, they're probably doing evil with your consumer preferences right now.

      re: a music store. Oooooooooooh, a shiny new music store. How innovative, Google. They're like eight years too late with that.

      It's a misstep for google to be opening a music store.

      As of yet, they don't have a million subscribers for gmail. if they do, they've passed that threshold so recently that there is little info on it. they haven't passed a million subscribers to gtalk either. they haven't shown any uptake for any of their products other than google, which means the general audience is either unaware of their consumer efforts and/or uninterested.

      I've used Microsoft Live ... and it's a pretty good integrated suite, a bit better than google offers... already, and Live is in true beta - like less than a year beta as opposed to fifth year senior beta.

      looking at the world through google glasses is to obscure the reality. YouTube is eating Google Video's lunch. they only hold the search engine market - and deeper pocket will continue to assial them from all sides.

      In your parlance, they'll need to do boatloads of evil just to SURVIVE.

      Google = fairy tales for adults. They're just some guys who turned a graduate project into some cash folks. Relax.

      --
      un burrito me trampeó.
    4. Re:Google's first serious misstep? by metlin · · Score: 3, Insightful

      I'm far from a Google fanboy, but you're full of bullshit.

      re: a music store. Oooooooooooh, a shiny new music store. How innovative, Google. They're like eight years too late with that.

      It's a misstep for google to be opening a music store.


      Ooooh, a search engine! How innovative, Google. I mean, given Yahoo!, Altavista and what not, a *search* engine?

      Gmail? Another email?! How innovative, Google! They're like, what, 30 years late? Or 40 years late? But from what I see, most people who've used Gmail hardly ever tend to use anything else.

      Ever strike you that the million users that *mail has might be - just *might be* - because they don't have spammers signing up for thousands fake addresses?

      Sheesh.

      Remember that first mover advantage is very limited and very short lived. First movers may sometimes make it big, but the ones that come later also have the ability to not do your mistakes and improve upon what you've already built upon.

      And they know that there exists a market that they can tap into, which is more than what the first mover had.

      If you take anything that Google's done (Search, Maps, News, Email, IM), they've taken what others have done it and tried perfecting it. A much better idea than finding new niche markets.

    5. Re:Google's first serious misstep? by Khammurabi · · Score: 2, Insightful

      I think it's less of the "first misstep", than the latest in a series of missteps by Google.

      Google has good intentions, but I think it's mistaken in believing it can keep launching service after service after service and be the leader in each. I'm really wishing Google would pull back and focus on a few key business plans, instead of half completing 1000 of them. Google's lack of focus is going to cost them pretty soon when smaller companies start focusing on the business plans that Google is getting lax on.

    6. Re:Google's first serious misstep? by KarateExplosions · · Score: 2, Insightful

      No, it's "naivette" that prompts worship for a corporation. It's "science" and "reality" that strikes down ID as any kind of scientific theory. Thanks for playing.

    7. Re:Google's first serious misstep? by adinb · · Score: 3, Interesting

      You mean like http://www.savethemusicfan.com/, founded by the Nettwerk Music Group CEO Terry McBride?

      With artists like Sarah McLachlan, Delerium, BT, Avril Lavigne, Bare Naked Ladies, and MC Lars, they're not exactly a small label. (But no, they're not Sony-BMG either)

      And they are doing their absolute best to give the RIAA the middle finger--not only by founding this not-for-profit (and picking up families' RIAA legal costs and any possible fines), but by selling decent quality NON-DRM'ed music at their own download store.

      --
      Moderation is for Monks!
    8. Re:Google's first serious misstep? by n8_f · · Score: 2, Interesting
      But Google will only ever have the same leverage that Apple has over the Majors.

      No, they will both have less. This is what the RIAA wants, at least two significant players that they can play off of each other. Apple won't agree to higher prices? Then the RIAA can take their ball and go home, because they no longer need Apple, they can sell everything through Google. Google won't raise prices higher than Apple? I guess Apple will get all of the business. This is the same thing they've done with copyright law.
      "Oh, now the European Union has longer copyrights. The U.S. has to have parity."
      "Oh, now the U.S. has longer copyrights. The E.U. has to have parity."
      Oh look, now coprights are the life of the creator plus 100 years. Etc., etc.

      Basically, we need a Good Guy (TM) with deep pockets to raise a middle finger to the majors.

      That's Apple. Remember when the RIAA wanted to raise prices? Apple stood their ground and took the battle public. They've got the least amount of DRM that the RIAA will allow. This does benefit Apple due to lock-in, but FairPlay is the only leverage Apple has over the RIAA. If they open that up, the RIAA no longer needs Apple. This is the problem with our current media system. As long as there is no competition amongst publishers, than competition amongst distributors doesn't benefit consumers, only publishers. The real problem is that publishers aren't competing for consumers' entertainment dollars. Until they do, competing at the distributor level is pointless and only reinforces the current system by providing even larger profits to publishers.

    9. Re:Google's first serious misstep? by F_Scentura · · Score: 2, Interesting

      "It's the same dogmatism that strikes down ID swiftly and flames anyone who espouse religious affiliation to oblivion"

      It's sad that the Creationists still can't conceive that evolutionary Christians are the majority of believers worldwide, and even in the United States. They lack the critical thinking skills to delineate "God did it and I don't question him!" from "God did it, and this is *how*!"

    10. Re:Google's first serious misstep? by amliebsch · · Score: 4, Insightful
      That's Apple.

      Sorry, no. If Apple were the "good guy," they might use DRM, but they would make it available to other device manufacturers. The only reason for the iPod lock-in is to benefit Apple.

      Not that I think there's anything inherently wrong with this - that's business, after all. But don't put Apple out there as some altruistic "good guy."

      --
      If you don't know where you are going, you will wind up somewhere else.
    11. Re:Google's first serious misstep? by n8_f · · Score: 5, Insightful
      Did you read the rest of the post? Please do.

      I don't believe Apple is altruistic, just as I don't believe Google is altruistic, and I never said so. What I did say is that Apple is the best consumer representative we're going to get for digital music under the current system, because Apple makes their money primarily from hardware sales, with the lion's share of song profits going to the RIAA. Apple could conceivably stop selling songs online. They'd take a hit, but people could go back to buying CDs and pirating music just as the did before iTMS. The hit to the RIAA would be greater.

      As I said, the lock-in does benefit Apple. But what is the upside to Apple opening up FairPlay, even to device manufacturers? Now they have to support a bunch of different MP3 players and they have to make up in song sales what they lose in hardware sales. And then they are dependent on the RIAA and they lose their bargaining power. Their sole advantage is that the RIAA needs them a lot more than they need the RIAA. Take that away and Apple is beholden to the RIAA, just like every other music company, and we lose the only advocate we have.

  2. Dynamic Pricing Based on Plays by RunFatBoy.net · · Score: 4, Interesting

    If Google launched their own player along with the store, I could envision a pricing model that based the price of the songs on the number of plays it was receiving from its purchasers.

    Over time, the cost of this track would become less and less and all of the "filler" tracks would slide fairly rapidly.

    Jim http://www.runfatboy.net/ -- Exercise for the rest of us.

  3. I have a good idea? by Bromskloss · · Score: 5, Funny

    Probably, filtering out stories who's headline ends with a question mark would augment the overall quality of the Slashdot content and, especially, the headlines.

    --
    Swedish plasma phys. PhD student; MSc EE; knows maths, programming, electronics; finance interest; seeks opportunities
  4. Inches closer... by butterwise · · Score: 2, Funny

    This headline reminds me of the "Far Side" strip where two cavemen are standing outside of their cave with a glacier wall just inches away, and one of the cavemen is saying, "Say, Thag, wall of ice closer today?"

    I can see a version of this strip where the cavemen are Steve Jobs/Apple and the glacier is Google...

    --
    If a baby duck is a "duckling," why would anyone want to eat "dumplings?"
  5. what format? by gEvil+(beta) · · Score: 4, Interesting

    Of course there's no mention of file format. Since the audio players out there generally play some combination of MP3, AAC, and WMA, it's only reasonable to assume that the store will sell in one of those formats. Since we know it will need DRM to make the labels happy, that pretty much narrows it down to PlaysForSure WMA. If that's the case, there're already plenty of competitors out there. What will make this store different from Rhapsody, Yahoo, Napsters, etc?

    --
    This guy's the limit!
    1. Re:what format? by CastrTroy · · Score: 2, Insightful

      That's the killer right there. AAC is pretty much only supported on iPods, but if you have an iPod, and you're going to buy online music, you might as well go through iTunes. WMA is more standard, but I don't think iPod plays it, so it's dead in the water. MP3 works on just about everything, but has no DRM. Maybe they will go DRM Free. CDs are DRM Free, and people are allowed to sell those, what's really stopping a company from selling DRM Free downloads. A company as popular as google might have the size to convince the labels that DRM isn't needed if you charge the right price.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    2. Re:what format? by dsgitl · · Score: 2, Informative

      Emusic sells un-DRMed mp3 files. They have a broad collection of minor label bands, defunct record labels (like sun), and current indie hits.

      They don't have much, if any, of current major pop music. However, they're still a worthwhile option for music downloads.

    3. Re:what format? by MobileTatsu-NJG · · Score: 2, Insightful

      "How is one closed/propriatary DRM scheme "more standard" than any other?"

      For the simple reason that you can buy a bunch of different players that'll play the format. Next question?

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    4. Re:what format? by amliebsch · · Score: 2, Insightful

      One is liberally licensed to third parties who wish to use it. The other is not.

      --
      If you don't know where you are going, you will wind up somewhere else.
    5. Re:what format? by durdur · · Score: 2, Informative

      Read the little "Legal" link on their site where they say it's all kosher according to Russian law, but they make no guarantees about your legal liabilities if you're not Russian.

  6. On what device? by Anonymous Coward · · Score: 2, Insightful

    Afaik, Apple won't allow non fairplay DRM on their ipod .. so I ask on what device will this music play on?

    How many people are going to want to have two devices, one to play their hundreds of dollars in itunes music (that only plays on ipod) and another to play songs purchased from Google.

    Anyway if they end up using an Open DRM format .. I know I'd be happy with 'em.

  7. why google will fail it by Yahweh+Doesn't+Exist · · Score: 4, Insightful

    >"The music industry is broadly unhappy..."

    hence why customers are broadly happy with iTunes - it's FAIR!

    1. Re:why google will fail it by j00r0m4nc3r · · Score: 2, Insightful

      It will never happen. The only way to beat them is to not play their game. Independent or self-publishing and independent+electronic distribution are the keys.

    2. Re:why google will fail it by pNutz · · Score: 2, Informative

      Eh? Where the hell does iTunes get their music? It's making the record companies suffer? Using iTunes, Google Music, Rhapsody, Yahoo Music, Amazon, et al, supports the miserable music industry. It lets them think you want 'Fair' content that can only have 5 copies of. That's still being treated like a criminal, just with a bigger cell.

      Buy DRM-less independent music if you want to be treated fairly.

      eMusic Subcription-based, very cheap, a lot of great artists and indie labels (New Pornos, Spoon, Blackalicious, CCR, Thelonius Monk)

      BLEEP A-la-carte, most electronic but has a lot of small labels, some stuff in FLAC (Warp records, Ninja Tune, One Little Indian/Bjork)

      AudioLunchbox Subscription and a-la-carte, a little pricier than emusic but has some different artists (Death Cab for Cutie, The Sounds)

      Calabash Mostly world and folk music (Tinariwen, reggae)

      There are more. Hopefully Songbird will make it easier to access them all through a single interface.

      --
      Death and danger are my various breads and various butters.
  8. Prediction by LividBlivet · · Score: 3, Funny

    $60 / month for up to 12 DRM laden, non transferrable 128kbps windows audio files. If the labels are dictating the terms you know the deal will suck ass.

  9. Server Centric? by ikejam · · Score: 2, Insightful

    Going by google's general productline, gTunes[:-s] could be a server centric music player - only problem is that'l fall flat on its face.

    Still if it does come out, I expect Google to fit it in with its 'organise the world's information' line.

    Perhaps just using their search algorithm to find the music you want to buy is enough.. perhaps...

  10. The Missing Link Found? by TEMMiNK · · Score: 5, Funny

    Perhaps the eternally elusive missing link has been found...

    Step 1. Anything

    Step 2. Google

    Step 3. Profit!

    --
    "The stupider people think you are, the more surprised they will be when you kill them..."
  11. Only once piece of the picture... by webword · · Score: 2, Interesting

    How does the music store interact with players, especially the iPod?

    Can users easily manage their music libraries?

    What kind of file formats will be available?

    Overall, the article makes it sound like Google is very focused on the music industry. I understand this to a point, but Google's users won't be too happy if the music industry seems like it is in too much control. Users are willing to pay, but they expect a certain level of freedom and choice. The user experience is at least as crucial as buy in from the music industry. Or, in other words, Google needs to consider both supply and demand.

  12. Product Name by alexhs · · Score: 4, Funny

    Going by google's general productline, gTunes[:-s] could be a server centric music player

    I guess you meant Gtunes *Beta* :-)

    --
    I have discovered a truly marvelous proof of killer sig, which this margin is too narrow to contain.
  13. I don't think so by Drog · · Score: 2, Interesting

    I think most consumers will simply see this as another place where you can download music. The prices and file formats will be different, but that's about it.

    --

    Looking for political forums? Check out "The World Forum".

  14. OMFG by Anonymous Coward · · Score: 4, Funny

    This is news for nerds and the headline is using the imperial system? Metric, please, metric.

  15. The music industry is broadly unhappy by digitaldc · · Score: 3, Insightful

    Is there anything that pleases the music industry? I am simply tired of reading about these whining gazillionaires.

    --
    He who knows best knows how little he knows. - Thomas Jefferson
    1. Re:The music industry is broadly unhappy by ureshii_akuma · · Score: 2, Funny

      You will be happy to hear that I have it on good auhority there is something that quite pleases the music industry! What is this wonderful thing? Why, it is nothing more than screwing! Be it screwing artists, screwing customers, screwing the public domain, or screwing your congress-person in exchange for legislation to feed their habit, those wacky music industrials just can't get enough!

  16. Name? by scarlac · · Score: 3, Funny

    Introducing "Goosic" or what about... "Moosic"... or something as wonderful as "Mugoosicgle"?

    Or how about something that just as describing as "Ekiga", which is real easy to remember.

    Sarcasm intended.

  17. Who wants the service - industry or consumer? by dougman · · Score: 5, Insightful

    When I read the comment pulled from the article:

    "The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services."

    I thought to myself, "If the music industry is broadly unhappy, then Apple is probably doing something right."

    What we should be hearing is how Google is stepping up to offer alternative services that address a gap that consumers are experiencing. Instead that quote would indicate that Google is stepping up to offer alternatives to the music industry. Frankly, I don't hear too many people (myself included) in the mainstream complaining about the options. I'm all for capitalism and competition and welcome Google to the game. However, I'm going to remain skeptical about this until I fully understand where Google is going with this.

    --
    "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty." - Churchill

  18. Unending greed? by TheNoxx · · Score: 2, Insightful

    From TFA: "The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services."

    What part are they unhappy about? Making tons of money not enough, they want more? The only thing that could lead the music industry to be "unhappy" with iTunes is that they want to charge more per download, whether it be through higher price-fixing or subscriptions that seem like a good deal, but aren't. That's all they care about. Unfortunately, the MPAA doesn't get to dictate how the market works, too bad for them. Unless Google starts off with an online music store a good bit cheaper than iTunes and somehow manages to completely kill off the iTunes store before jacking up the prices, the music industry isn't going anywhere, and neither will any new efforts from Google or anyone else.

    --
    Ex nihilo nihil fit.
  19. Utter lack of sympathy for the music industry by Froggy · · Score: 3, Insightful

    'The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services.'

    Oh, really?

    Well, I'm broadly unhappy with the music industry's desire to charge like wounded bulls for mediocre content and infest their media with single-platform proprietary DRM. I just *wonder* what sort of 'subscription models' the music industry is hanging out for. Guess what? I'm usually pretty supportive of google's enterprises, but if if I can't listen to the music on my iPod *and* my daughter's el cheapo MP3 player *and* my PowerBook *and* my work linux box *and* burn it to a CD so I can show it to my non-MP3-player-owning friends and relatives -- I'm not interested.

    Oh, and I like Celtic folk, Afro-Celtic world music, blues, prog, electronica, choral and a bunch of other minority genres. I spent about A$70 on music last month, almost all from little indy labels. The Big Names of the music industry can take their overproduced teen manufactured product and stick it where the sun don't shine.

    --
    It is a woman's prerogative to change other people's minds.
  20. I hope that Google does this, and does so with... by zappepcs · · Score: 3, Interesting

    I hope that Google does this, and does so with the same standards and aplomb that they have used for all of the other Google services. I like Google, not because of the do no evil clause, but because their services work, they work well, and the costs are... well, affordable.

    If MS or the RIAA could find a company that works as well as ITMS or that works better than ITMS, they would have done so. Clearly, they are in need of a partner company that has both the technology know-how and the backbone to make it work. Google definitely fits in that category. I hope that if such a bargain is struck, that the *AA finds themselves holding on for dear life to the tail of a very BIG tiger....

  21. More possibilities for adsense? by gadwale · · Score: 2, Insightful

    I guess this will open up a lot more opportunities for advertising on gtunes.. Relevant-genre/artist music-snippet ads maybe?

  22. Amazing by Dr_LHA · · Score: 4, Funny

    Hi hope it's as great as the Google Video store!!!

  23. DRM is Unnecessary by tabdelgawad · · Score: 2, Insightful

    What would happen if the **AA allowed Google to launch a music/movie service *without* DRM? The vast majority of material on legitimate services like iTunes is available DRM-free on the p2p networks and usenet. But people still use iTunes because it's more convenient and not legally risky.

    Would iTunes or any other legitimate music/movie service be *less* successful without DRM? I don't think so. Which begs the question: what's the **AA's business case for DRM?

    --
    Imposing Libertarian views on everyone online since 1992.
    1. Re:DRM is Unnecessary by typical · · Score: 3, Informative

      You are familiar with MagnaTune? No DRM there, and they have a "Why we are not evil" link on their page.

      --
      Any program relying on (nontrivial) preemptive multithreading will be buggy.
  24. how to keep the RIAA happy... by antibryce · · Score: 2, Funny

    The music industry is broadly unhappy with the fixed pricing

    All Apple has to do to keep the industry happy is rearrange that to "price fixing".

  25. On-line indie stores? by bri2000 · · Score: 2, Insightful
    Actually I'm surprised it hasn't happened already.

    I've just finished reading Simon Reynolds' very interesting history of the British post-punk scene "Rip It Up And Start Again". There are sections in there discussing the indie labels like Rough Trade, Mute, Stiff and others which were set up and funded by enthusiasts. This was a world where music could only be distributed physically on casette or vinyl which presented huge barriers to entry. Yet these people not only overcame them they ushered in arguably the most creative period for British music since the 60s and created a few big stars along the way (whom they gave a fair share of the royalties to, no advances with profits being split 50/50 after the cost of pressing the records had been recovered).

    How much easier would it be to set up something similar today when semi-pro and even pro quality recording equipment is so much cheaper and physical distribution is almost irrelevant? Yet, as least so far as I can tell, no one is trying this? Why is there no equivalent of the Rough Trade shop on-line entering into pure distribution deals with new bands to allow them to sell downloads without a record deal and enriching our lives by introducing us to stuff we probably wouldn't have heard otherwise? Not to mention encouraging (and possibly making commercially viable) the sort of experimentation which history has shown time and again is the best way for music to evolve both artistically and commercially.

  26. Re:Hmmmm by TrippTDF · · Score: 2, Insightful

    I can second that last part... I'm friends with an API developer at Google, and my boss is friends with someone higher-up in marketing... both have told us that Google has no plans for an OS.

    and why should they? 2 years from now, no one is going to care about what OS you are running, anyway. We will have true Windows emmulation on OS X shortly, and WINE seems to do great things for windows apps under linux... pretty soon your choice of OS isn't going to matter in terms of what software you can run.

    Beyond that, we are heading towards a service-based model, which moves us away from the OS as a productivity space anyway. Google would do better to put their efforts into these services than mucking about with an OS and fighting a (probably loosing) battle with MS on that front. Better to take the fight to the internet, where they are stronger anyway.

  27. DRM Free Music? by rdfield · · Score: 2, Informative

    All the artists on http://www.mvine.com/ receive 50% of the after tax revenue for downloads, and all the music sold, in Ogg Vorbis and MP3 formats, is free of DRM. There are also many free music videos to download too.

  28. The critical question.. by jcr · · Score: 2, Funny

    Will music from Google work on my iPod?

    If not, it's a non-starter.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
  29. Yes But by Queer+Boy · · Score: 3, Interesting
    Will it play on iPod?

    This is sort of a delicious irony because I remember in the 90's the big question about any computer system was "Will it run MS Office?"

    --
    Not since Marie-Antoinette played milkmaid has looking simple and honest been so fake and complicated.
  30. From another article: by cogitophobia · · Score: 2, Funny

    'The Public is broadly unhappy with the price fixing and lack of subscription options at the non-existent Music Industry Digital Music Store and likely to support iTunes.'

  31. I actually like iTunes. by Ectospheno · · Score: 2, Insightful

    The music industry is broadly unhappy with the fixed pricing and lack of subscription options at the market-leading iTunes Music Store and likely to support alternative services.

    Call me crazy, but I actually like iTunes. I like that all the songs are $1. I like their selection, the interface, how easy it is to get what I want on my iPod, etc. I don't want to pay more for music. I stopped buying CD's a long time ago and it is the $1 price point that got me to purchase music again. If it goes up I'll do what I did with CD's years ago and stop buying music again. The last thing I want is a subscription service. Honestly, who here wants a subscription service for music? Raise your hands.

    Now ask me how much of my time I waste worrying about the music industry only making a crap-load of money rather than a whole shit-load. Their whining about "mean old apple and fixed pricing" is enough to make a person sick.

  32. Mod Parent Up by DrSbaitso · · Score: 2, Insightful

    Good post. Although recognizing that the marginal cost of a digital music track for sale is zero doesn't mean that "[t]here is no way to regulate the prices by traditional means." The economics are still the same!

    Imagine the physical CD media of a popular record. Marginal cost is now not zero, probably instead closer to $1. How should we price it - expensive, to acquire the price insensitive "gotta-have-it" types, or cheap, to attract the "it-could-be-cool" casual buyers?

    As you surmise, the answer in both cases is to set price such that profit is maximized. In one case, there are no costs, so the optimum price could be lower than otherwise, but not necessarily. Either way, companies will want to experiment in order to model the price sensitivity of their customers.

    ---

    I don't think that old tracks would necessarily be cheaper, either. Many customers of old and/or niche music are price insensitive -- other close substitutes don't satisfy them. Again, this isn't something that can be answered without real data as opposed to WAGs (we can try - this is slashdot, after all), but that's just a theory of mine.

    --
    beware the jabberwock, my son! the jaws that bite, the claws that catch!