Slashdot Mirror
Vivendi Calls iTunes Contract Terms "Indecent"
Bemopolis writes "Brace yourselves for a shocking revelation: The CEO of Vivendi, parent company of UMG, is not happy with the current deal with the iTunes Store. 'The split between Apple and (music) producers is indecent [...] Our contracts give too good a share to Apple.' The usual argument about older music priced at the same rate as new music is trotted out. No doubt UMG would prefer to make the former cheaper, while maintaining the current pricing for the latter. At least he had the decency not to claim that they were trying to defend their artists against predatory iTunes pricing. Or maybe he just misplaced the index card with that boilerplate on it."
They probably prediced the store to do about 10% of the sales they're actually doing, and thought Apple's profits seemed fair at that level. But the bigger pie only made them want a relatively larger piece.
You know, the best thing to do would increase the price on old music and decrease the price of new music. Give people the new untested stuff for cheap. That will make it easier for new bands to grow and gain mindshare. People are more likely to take risks if it doesn't cost as much.
Then you charge more for the classics. The market quite simply, will bear a higher price for great classic albums than some new no-name act. People who expect old music to be cheaper are confused. Music doesn't depreciate, it's not electronics.
Give me Classic Slashdot or give me death!
The credit card companies get 7 cents out of every song sold-it comes out of Apple's 'cut'.
Apple gets 15 cents out of every song sold and out of that they have to pay for bandwidth, web design and 1001 other things. Apple gets the smallest 'cut' of all. They claim they only break even on iTunes; that it exists to benefit the iPod-which is their big cash cow. Of course the record companies are ALSO botching abiut that-they want a 'cut' on every iPod sold!Greedy bastards!