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Labels try to raise prices for music downloads...

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goodcow

Member
http://financialtimes.printthis.cli...0000e2511c8,ft_acl=,s01=1.html&partnerID=1744

Top music labels try to raise prices for downloads
>By Scott Morrison in San Francisco and Tim Burt in London
>Published: February 28 2005 02:00 | Last updated: February 28 2005 02:00
>>

Some leading music labels are in talks with online retailers to raise wholesale prices for digital music downloads in an attempt to capitalise on burgeoning demand for legal online music.

The moves, which suggest the labels want a bigger slice of the fledgling market's spoils, has angered Steve Jobs, the Apple Computer chief executive behind the iTunes online music store.

But music executives expressed caution about their ability to push through unilateral price increases. Among the biggest groups, Universal Music and Sony BMG are known to be particularly reluctant to disrupt the market for downloads.

One top label said it would not raise wholesale prices now because the market was not yet mature enough for an increase. The three other music labels - which also include EMI and Warner - refused to comment.

Analysts, meanwhile, are warning that price rises could exacerbate internet piracy, which is thought to cost the industry about $2.4bn (£1.2bn) a year.

Music industry executives said introductory wholesale prices for digital tracks had been set low to stimulate demand, but Apple's success had prompted concern that they may now be too low.

The effort suggests several labels believe demand for online music is robust enough to withstand higher prices, despite the fact that online sales are estimated to account for about 2 per cent of total music sales.

Michael McGuire, analyst at Gartner, said the move could backfire because consumers who buy music over the internet are accustomed to paying 99 cents or less for downloads.

Wholesale prices are thought to be about 65 cents. "It seems to me to be singularly bad timing," he said, adding that an increase could send fans back to underground services where they could get illegal music tracks free.
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Willco

Hollywood Square
What irritates me is that buying from iTunes or other download services isn't that much more of a bargain over buying music in stores, where you can get a new release at Target or other discount retailers for $10.99 to $13.99. And few a dollars more than what you pay on iTunes and such, you get a disc, cover art and bonus materials (music videos, DVDs, etc.).

The fact that it's convenient and still less expensive, even if it's at the expense of packaging and content, makes downloadable music a good alternative for many.

Now the labels want to charge us the same amount it'd cost to purchase an album online as in a brick and mortar store, without packaging or extra content?

Assholes.
 

Ecrofirt

Member
exactly.

I'm of the opinion that they want to chage the same price so that people will be discouraged from downloading. Perhaps they fear people confusing legally downloading music and illegally downloading it, I don't know.
 

bishoptl

Banstick Emeritus
Willco said:
Now the labels want to charge us the same amount it'd cost to purchase an album online as in a brick and mortar store, without packaging or extra content?
*dingdingdingding*

I, for one, would absolutely love to see the music labels try to push online prices higher. Nothing like watching a greedy industry cut its own throat.

leah_canada-flag.jpg
 

mrklaw

MrArseFace
its funny, because labels are already getting too much per track as it is. Apple led the way and opened up the labels to the idea of downloads, but at a heavy price. They don't make much money from iTunes as it is.

Yet consumers will want prices to come down, not go up. Prices for an album aren't much different from those at walmart / amazon etc, and that covers physical production and distribution, and you get tangible goods that you can then rip into mp3 if you want.

The golden goose is hardly even squeeing the first egg out and they've already got their knives sharpened.
 

AntoneM

Member
you know, the funny thing is that the record labels themselves had ample time to start an iTunes like busines, where they could have charged .99 per song and gotten all of that .99. Instead the decided to sue everyone and thier grandmother, and now they are pissing and moaning about only getting wholesale per song.
 

tralfazz

Member
Regardless if you like the music or not I can't understand people who support artists who blatantly approve of the recording industry's tactics. I don't approve of piracy, but a group like Metallica is assanine to question the use of piracy when the they let the music company charge $19 for a record in the mall to their core audience who can't afford to spend that. Record companies are getting away with murder but the artists are just as guilty by turning a blind eye to it. Fuck em both.
 

aoi tsuki

Member
iTunes, along with most of the other music download services, are already a rip-off to me. The main advantage to it is convenience. You don't have to leave home, within a few clicks and minutes you've got your music, along with digital album art.

But what you gain in convenience, you lose in quality and choice, as is often the case. 128kbps AAC files aren't good enough for me. Good enough for casual listening, but there's been a few samples i've heard with noticeable noise and compression artifacts, especially when compared to the CD. There's also issues of DRM which hinder portability as well, not having an original CD (sucks if your hard drive fails), and i do enjoy album art and the tangibilty aspect.

The only service i'd consider is Napster to Go. Ten bucks a month for unlimited downloads, though you've got to pay 99 cents per track to transfer them to CD. If i didn't already have a backlog of CDs to buy, i'd probably jump on that and use it for sampling purposes, eventually find a way to transcode the tracks myself to the format of my choice.
 

Willco

Hollywood Square
aoi tsuki said:
The only service i'd consider is Napster to Go. Ten bucks a month for unlimited downloads, though you've got to pay 99 cents per track to transfer them to CD. If i didn't already have a backlog of CDs to buy, i'd probably jump on that and use it for sampling purposes, eventually find a way to transcode the tracks myself to the format of my choice.

Napster to Go is a huge ripoff. Your music only works while you're subscribed, unless you pay an additional 99 cents per song to purchase it. It's like renting music. So if you stop using their service, you can no longer listen to your downloaded music catalog.

Plus, Napster to Go doesn't even allow to download all the songs available in the general Napster music catalog.
 

cybamerc

Will start substantiating his hate
Music downloads are too expensive as it is. Any problems the industry is experiencing are caused by the mishandling of everything from signing artists to marketing and retailing. I hope some of the major labels crash and burn soon. The music industry is need of a major shake-up.
 
I guess I shouldn't be surprised from an industry that charged $18.99 MSRP for the latest Garth Brooks and Whitney Houston CDs over 10 years ago. It seems like they'll never learn. They must love shooting themselves in the foot.
 

aaaaa0

Member
Willco said:
Napster to Go is a huge ripoff. Your music only works while you're subscribed, unless you pay an additional 99 cents per song to purchase it. It's like renting music. So if you stop using their service, you can no longer listen to your downloaded music catalog.

Plus, Napster to Go doesn't even allow to download all the songs available in the general Napster music catalog.

It's no more of a ripoff than XM or Sirius, and it's much better than either of those options if music is what you're interested in -- you can choose what you want to hear, and it works anywhere you can carry your mp3 player.
 
Fuck them. The music industry needs a change. First things first, out with the major labels. Greedy fuckers just ruin music and shove it down our throats anyway.
 

Willco

Hollywood Square
aaaaa0 said:
It's no more of a ripoff than XM or Sirius, and it's much better than either of those options if music is what you're interested in -- you can choose what you want to hear, and it works anywhere you can carry your mp3 player.

Don't be retarded. With XM and Sirius you get original content that you don't get with a MP3 subscription service.
 
Let the fuckers do that, the thing that needs to be done to kill these companies is for the artist to pay a web designer, get an idependent studio, and start their own god damn music download site. Money direct to the artist, music direct to the fans. That'll be the downfall of these companies.
 
Let the fuckers do that, the thing that needs to be done to kill these companies is for the artist to pay a web designer, get an idependent studio, and start their own god damn music download site. Money direct to the artist, music direct to the fans. That'll be the downfall of these companies.
The problem is promotion, that's the one thing the record labels do that a new artist just doesn't have the resources and connections for. It's tough enough to get your band noticed in your hometown, much less worldwide.
 

border

Member
Willco said:
Don't be retarded. With XM and Sirius you get original content that you don't get with a MP3 subscription service.
And with Napster you get to hear whatever you want when you want.

You can also convert the music files to MP3, though I guess it's against the law.
 

Willco

Hollywood Square
border said:
And with Napster you get to hear whatever you want when you want.

You can also convert the music files to MP3, though I guess it's against the law.

You can hear whatever music you want, when you want it while you're a subscriber. With XM or Sirius there's so much additional, exclusive and original content it's not even comparable. It's really apples and oranges.
 

border

Member
But you can only get the original exclusive content while you subscribe to Sirius/XM =P

It really is not worth comparing though.

Just out of curiousity, what exclusive content do the satellite stations have?
 

Willco

Hollywood Square
border said:
Just out of curiousity, what exclusive content do the satellite stations have?

I assume you think all radio is music? You do know humans talk on them too and have everything from variety shows, talk shows, newcasts to sports programming.
 

border

Member
No, I just didn't think that they had that much exclusive programming. Though I guess you meant exclusive-to-satellite-radio and not exclusive to each company.
 

Teddman

Member
Much of the programming is exclusive period in many markets though. For example, if you want to listen to sports broadcasts that are of teams not in your area, you're not going to find them on terrestrial radio.
 
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