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MacBytes
Oct 5, 2005, 02:36 PM
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Category: Opinion/Interviews
Link: What do independent labels think of showdown over 99c Apple iTunes pricing? (http://www.macbytes.com/link.php?sid=20051005153649)

Posted on MacBytes.com (http://www.macbytes.com)
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NinjaMonkey
Oct 5, 2005, 03:23 PM
Pretty good article, I agree with all his points.

I also think that if the majors increase their prices you will see indie sales go up. People are buying more songs from indie bands because of the iTMS, the albums are easier to find and its easy to browse and sample a lot of different artists. If indie label prices are going to be lower, that will only encourage more sales.

breathein
Oct 5, 2005, 03:37 PM
Pretty good article, I agree with all his points.

I also think that if the majors increase their prices you will see indie sales go up. People are buying more songs from indie bands because of the iTMS, the albums are easier to find and its easy to browse and sample a lot of different artists. If indie label prices are going to be lower, that will only encourage more sales.


This article and what you said is COMPLETELY true!!! I was never interested in buying CDs. The cases always fall apart, the CD scratches, they were expensive. I have been using my iPod and downloading albums from the iTMS for a few months now. I like being able to not leave my house and instantly have the CD. I dont like to pirate mp3s because of the lack of quality. The iTMS has definitely contributed my own money towards the Industry. Had it not been for my ipod and the iTMS I would still be ripping people's cds, but Apple makes it easier for me to find rare CDs.. i dont buy the albums when they are over 9.99 but i most definitely buy any CD i like after previewing. The RIAA is ridiculous. This is art for the people, not money for the companies. Perhaps the problem with these major labels is no one gives a crap about cheap music that all sounds the same. I only buy independent label music, not because its independent, but thats where the music is at today. the music industry is a horribly ugly scene and all these pop stars producing crap are just that, crap. and i'm glad that record sales for them are low, maybe thats the truth.. our culture is reappreciating REAL music!!

breathein
Oct 5, 2005, 03:41 PM
I also like the iTMS because that is one cd less that needs to be created out of plastics, etc. Digital Music is more congruent with my ideals.

I will definitely protest any raise in price on music from the iTMS because the labels have no defense. and we as the consumer do, we don't have to buy the music!!

iMeowbot
Oct 6, 2005, 02:24 AM
I think that the issue is that majors are mostly concerned with Apple's dominance in the market (after all, revenue from digital downloads is still insignificant.) and that they have lost "control". I'm almost certain, that having 'variable pricing' on individual downloads, will only lead to actual price reduction down the road. Some labels will reduce prices for the new releases, in effect , to "buy" their way into the charts and others will have to follow. So, instead of selling tracks for 99c, we’ll be selling them for 79c or whatever the bottom-range price will be.
Yep, and the downward price pressure is exactly what half the Big 4 want to happen too. Competitive pricing is already being used in the CD market to influence the charts.

Yvan256
Oct 6, 2005, 09:49 AM
If the big labels really want a bigger part of the pie (more money) why don't they go bother Wal-Mart for a while, with their 0.88$ tracks?

Oh, right - Wal-Mart could then tell them to look for another physical distribution channel for their CDs... :rolleyes:

Fender2112
Oct 6, 2005, 10:56 AM
We need to remove the incentive to steal/copy/buy bootlegs and create a "culture" of paying for music, which has unfortunately eroded in the last few years.

This is the key issue that the labels need to resolve. We have a generation of young people who were "raised" on P2P. For them free music is the norm. The labels need to work with companies like Apple to tap into the next generation (10 - 18 year olds) of music listeners. They need to concentrate on ways to influence this next round of young adults... and NO, sueing a 13 year-old is not one of those ways. There's this thing called "positive renforcement". I use it alot with my 5 and 10 year old daughters. I'm not a marketing expert, but I'm sure there are methods such as music clubs, rebates, buy one get one free deal or whatever, that can be implemented to encourage young people to legally download music.

The major lables need to get rid of the old ways and come up with a new way of doing business. They need to realize that at the end of the day, they are only hurting themselves. Music is not a necessity. I don't have to have and I sure don't have to buy it. But a little possitive influence can help persuade me.

shamino
Oct 6, 2005, 05:41 PM
... All I care is that we get 70c from every download, we have no manufacturing cost, distribution costs or returned stock. Because of this, we can pay artists (who supply finished masters) 50% of the revenue. If UK managers are complaining, that their artists are getting only 4.5p on every 79p track, why blame Apple?! They should be blaming themselves for negotiating these type of contracts for their artists! ...
I've been saying this for a few weeks now. It feels good to hear someone in the business say the same thing.