Apples relationship with the record labels starting to sour ?
Apples relationship with the record labels starting to sour ?
I found this very interesting....
taken from engadget.com...
'' Everyone usually gushes about how brilliant Apple was in being able to corral all the major labels together for the iTunes Music Store, but is Stevie J's insistence on everything being his way or the highway putting Apple's relationship with the labels at risk ? Doesnt look like anyone is going to be pulling their catalog from the iTunes Music Store any time soon, but CNET does have a story today about the growing tension between the record labels and Apple. Nothing particular surprisingit's mainly that the record labels want more flexibility in being able to charge more for new hit songs and (supposedly) a little less for older titles and that they'd like Apple to open up its FairPlay DRM to other MP3 player manufacturers because they think it would help them sell more songs (they shouldn't get their hopes up)but the twist here is that these dissatisfied labels are taking a good long look at the wireless carriers as alternative partners to Apple. ''
Rest of article:http://www.engadget.com/entry/1234000470040316/
Another article on same subject:http://news.com.com/Music+moguls+trumped+by+Steve+Jobs/2100-1027_3-5671705.html
[1358 byte] By [
iMacc] at [2007-11-10 12:59:41]
# 1 Re: Apples relationship with the record labels starting to sour ?
I'm not sure, Jobs has always been this way, from the very beginning, and look where he is now. I think the fact that someone has decided to write an article on it doesn't make a difference. They had this big deal (of whihc i'm sure you all heard about) with the updated version of 'Feed The World' because they wanted to sell it at 1.29 but apple made them sell it at 79 and eventually they agreed (with apple paying the difference) but you see, there has not been a sudden change or anything, its always been there, just someone decided to write an article on it.
# 2 Re: Apples relationship with the record labels starting to sour ?
While I think both sides of this should be careful in assuming too much or trying to flex too much muscle, I'm more likely to side with Apple on this one.
The labels are forever trying to maximize their profits by raising prices to the very top notch of what the market will bear. (Before all the economists and MBA types start yelling at me about supply and demand and how corporations work and so on, I'm not saying I don't understand it or that other businesses/corporations don't do the same thing, so calm down!) It's simply frustrating that they can't leave a good thing alone and let it work. I suppose a big part of my frustration is that these are (some of) the same companies that have been busted for price fixing on CD sales more than once and seem interested in treating their customers like sheep at best and criminals at worst.
In regard to opening up the DRM to sell more songs, it might sell a few more (although, in my humble opinion, I doubt the gains would be that sizable to be honest) but it seems to me it would also dramatically increase the chance of piracy and cracking the DRM as well.
# 3 Re: Apples relationship with the record labels starting to sour ?
Although I think 99 cents should be the high point for a song download, I think charging less for older songs would be a great idea. When you can buy a used CD for $3-5, buying a single track for 99 cents doesn't seem like a good deal.
# 4 Re: Apples relationship with the record labels starting to sour ?
I'm not sure but if you look at Business2.0's Steve article a while ago, they did mention how "grateful" the record labels were to him. 99US cents is an excellent price, so why not?
Honestly, I can't wait for Apple to bring down iTMS here.
