Music Moguls vs. Steve Jobs: Fight!

[Jason Dunn]

<div class='os_post_top_link'><a href='http://news.com.com/Music+moguls+trumped+by+Steve+Jobs/2100-1027_3-5671705.html?tag=nefd.lede' target='_blank'>http://news.com.com/Music+moguls+trumped+by+Steve+Jobs/2100-1027_3-5671705.html?tag=nefd.lede</a><br /><br /></div><i>"When Apple Computer CEO Steve Jobs walked into the suites of top record label executives in 2002, iTunes software in hand, he was welcomed as a trailblazer to a digital music future. Now, nearly two years after Apple's iTunes launch, record executives have become worried that they have inadvertently ceded too much power over their industry to this charismatic computer executive. Frustrated at what they see as Jobs' intransigence on song pricing and other issues, some record executives are now turning their hopes toward other partners, particularly mobile phone carriers eager to get into the business of selling music. They see this new focus as a way to broaden the digital music business, and lessen Apple's dominance over their market in the process."</i><br /><br />A very interesting article about how the music studios feel now that they made a deal with the devil so to speak. From a consumer point of view, it's great that Jobs is holding fast to the 99 cent price point, but the music studios want to go beyond that and charge more for popular songs. At my local Blockbuster I pay more for new releases than older movies, but through a DVD rental service such as Zip.ca all movies are created equal. We're talking about ownership versus subscription though, so the comparison may not be fair. In the world of DVD purchases, you tend to pay more for a hot new release than an old movie. But does the same concept apply to music?

[Phronetix]

Let's face it. There will come a time when the ITMS will need to increase the price per song. I have trouble with the music executives talking about $2.50 though. This is overpriced. Besides, read between the lines: the exec's are essentially saying that, "if we knew itunes would prove to be so popular we would have asked for a larger piece of the pie". The last I heard, intransigence was a part of skillful negotiation. Don't blame Steve for being a good businessman. Blame youselves, and your lawyers.

I use the ITMS in all honesty because I have no interest in looking elsewhere. It works very well, the aac files sound great on my iPod and on the cd's i burn, i can use airtunes on my wireless network, and the price is fair. I think 99 cents is a fair price for a protected music file. If I wanted the cd, the cd artwork, the case and that classy anti-theft foil sticker, then I'd go to HMV and pay way too much there.

You gotta love the fact that the music exec wanted to remain "anonymous". This doesn't make the author particularly credible. I see that and consider the likelihood the author just made up the quote to support his thesis. How can one consider the news-story anything more than speculation?

[/rant]

Phro

[Jonathon Watkins]

Ha. $0.99 is still too high, let alone £1 which we pay. :x

I'll just keep buying CDs and ripping them. I just don't trust DRM downloads. :?

Music is worth what people are willing to pay for it. I will pay slightly more for a new CD I want to listen to now, so I would say that the concept does hold.

[Phronetix]

Ha. $0.99 is still too high, let alone £1 which we pay. :x


The £1 price is ridiculous IMO, but is it proportional to the cost of a store bought cd? A cd in Canada, in my limited estimation, normally runs about $18, not including GST and whatever provincial tax the buyer may or may not have to pay, depending on where you buy. It's within the same ballpark as the VAT. This comes out to £7.58, with this morning's exchange rate.

Looking on the UK Amazon, at the new Nine Inch Nails cd the price is £8.49. (http://www.amazon.co.uk/exec/obidos/ASIN/B0008E0DHS/ref=br_lf_li_1_2/026-7368880-6817204) At Amazon Canada the same cd is priced at $16.99 Canadian. (http://www.amazon.ca/exec/obidos/ASIN/B000929AJQ/qid=1113928170/sr=2-2/ref=sr_2_3_2/701-4501478-2485155) The conversion of 16.99 (done here (http://money.cnn.com/markets/currencies/)) is £7.15. This is 16% less in Canada. On the other hand, the ITMS price is 58% less in Canada.

Yikes. Your complaint is now officially justified...
:bad-words: