Apple Australian iTunes Contract Terms?

MacRumors

macrumors bot
Original poster
Apr 12, 2001
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ThinkSecret claims to have some details surrounding Apple's negotiations with Australian record labels and the iTunes Music Store.

According to the rumor site, Apple is paying AU$.99 for every single that sells for AU$1.69. Apple leaves itself the option to raise customer prices at any time after giving 5 days notice to the labels. Album pricing and reimbursement appears to be more variable.

Apple ensures that all tracks can be sold separately as well as part of albums with the exception of certain exclusive and limited time promotions. This along with variable song pricing has been at issue between Apple and music labels.

Apple also promises to respond in a timely manner to circumvention of the Digital Rights Management in the iTunes store.

Apple's agreements with U.S. music labels will expire in early 2006 according to earlier reports.
 

Mechcozmo

macrumors 603
Jul 17, 2004
5,215
2
...and how is this different from the other country stores?
You must protect the DRM! (Okaayyy)
Songs can be separate but for a few! (How it is already!)

Did Apple win or did the lawyers get paid much money for nothing?
 

Staffroomer

macrumors member
Oct 17, 2005
74
0
Sounds to me like Apple has the upper hand in this situation. Too much power perhaps? I don't think so. The record companies have been in control too long!!!
 

nagromme

macrumors G5
May 2, 2002
12,551
1,186
I wonder how much of Apple's .70 Australian goes to credit card companies?

And it seems unlikely, while the .99 cost is fixed, that Apple would ever choose to raise the per-track price beyond 1.69.
 

johnnyjibbs

macrumors 68030
Sep 18, 2003
2,958
119
London, UK
It seems odd that the music labels seemed particularly greedy in Australia but it sounds like Apple is going to find it increasingly difficult when renewing contracts in the US and Europe to keep the conditions and prices the same.

I think this is a real shame and it's about time that the music companies realised that it's their greed which drives piracy. They also seem to forget that, if it wasn't for Apple, this digital market may still not have existed. I'm hoping Apple can stand tough on this.
 

barneygumble

macrumors 6502a
Apr 18, 2005
726
0
I still haven't bought a song yet, buggers don't accept Bankcard, that's cost em a video ipod as well;)
 

Nermal

Moderator
Staff member
Dec 7, 2002
18,678
1,183
New Zealand
Nobody accepts Bankcard :p

My dad runs a business and he got a letter from Westpac a couple of months ago, saying that they're discontinuing Bankcard merchant support. It doesn't really surprise me, I've seen very few cards in recent years.
 

macidiot

macrumors 6502a
Aug 13, 2002
815
0
Hmm, is this really news? Or worthy of macrumors page one? No offense but I have to think that Australia is a marginal market at best. I'm thinking its a smaller market than Los Angeles. I get that macrumors has a "down under" bias for some reason, but how about something a little more relevant? Please don't turn macrumors into another macbytes, linking to articles from Australian and New Zealand news outlets. Often days or weeks after the original(and identical) story appeared in America.

FYI, here's something newsworthy... How about the fact that the Wall St. Journal is reporting that NBC/Universal is "very close" to signing a deal to provide tv content on iTunes. And the source is the CEO of NBC/Universal. And guess what? This news is actually current.
 

barneygumble

macrumors 6502a
Apr 18, 2005
726
0
Nermal said:
Nobody accepts Bankcard :p

My dad runs a business and he got a letter from Westpac a couple of months ago, saying that they're discontinuing Bankcard merchant support. It doesn't really surprise me, I've seen very few cards in recent years.
I really should get a visa, but am afraid i will go on a spending spree, at least i can still buy my food and petrol with it
 

GorillaPaws

macrumors 6502a
Oct 26, 2003
930
6
Richmond, VA
macidiot said:
Hmm, is this really news? Or worthy of macrumors page one? No offense but I have to think that Australia is a marginal market at best.
Maybe Austrailia is somewhat "marginal" in the global picture but insights into Apple's international pricing strategies IS interesting to macrumors community. They may indicate future trends in pricing on ITMS among other things, like reflecting Apple's relationship w/ the music companies etc.

As for your other rumor. I think that's very interesting and it ALSO seems worthy of a thread. Why don't you start one?
 

andrewag

macrumors 6502
Jan 11, 2005
308
0
Australia
macidiot said:
Hmm, is this really news? Or worthy of macrumors page one? No offense but I have to think that Australia is a marginal market at best. I'm thinking its a smaller market than Los Angeles.

And this is why the entire world hates Americans (assuming you are by the comparison to LA). :)
 

barneygumble

macrumors 6502a
Apr 18, 2005
726
0
macidiot said:
Hmm, is this really news? Or worthy of macrumors page one? No offense but I have to think that Australia is a marginal market at best. I'm thinking its a smaller market than Los Angeles. I get that macrumors has a "down under" bias for some reason, but how about something a little more relevant? Please don't turn macrumors into another macbytes, linking to articles from Australian and New Zealand news outlets. Often days or weeks after the original(and identical) story appeared in America.

FYI, here's something newsworthy... How about the fact that the Wall St. Journal is reporting that NBC/Universal is "very close" to signing a deal to provide tv content on iTunes. And the source is the CEO of NBC/Universal. And guess what? This news is actually current.

And yet we've bought more than a million ipod's and god knows how many macs, you truly are a mac idiot, and yes i agree with a previous poster, that is why people hate (most) Americans, egotistical.
 

mad jew

Moderator emeritus
Apr 3, 2004
32,194
6
Adelaide, Australia
Bigotry aside, I find it pretty interesting just how much of a margin Apple does take although I realise this of course doesn't all go straight into their pockets. I assume that "Apple paying 99c for every single" is referring to the amount they pay the record companies though.

barneygumble, ask your bank about VISA cards with zero credit. Depending on your bank you should be able to get either VISA access to your current account or be able to divert a savings account into a new VISA-accessible account. I just did it and I have no fees, no credit, minimal risk of debt (still technically possible but only ever $50 and very unlikely) and credit card abilities. :)
 

xrayzed

macrumors member
May 22, 2005
83
0
macidiot said:
Hmm, is this really news? Or worthy of macrumors page one? No offense but I have to think that Australia is a marginal market at best. I'm thinking its a smaller market than Los Angeles.
Los Angeles County has a population of 9.9m, Australia a population of 20.4m.

Of course we only have electricity during the day, so we only buy half as much music as people in LA, and Australia is a barter economy (1 CD = .25 sheep) so the size of the Australian market in economic terms is much lower.

I need to log off. The brown-outs are starting to kick in.

(Population sources: http://quickfacts.census.gov/qfd/states/06/06037.html, http://www.abs.gov.au/ausstats/abs@.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument)
 

barneygumble

macrumors 6502a
Apr 18, 2005
726
0
xrayzed said:
Los Angeles County has a population of 9.9m, Australia a population of 20.4m.

Of course we only have electricity during the day, so we only buy half as much music as people in LA, and Australia is a barter economy (1 CD = .25 sheep) so the size of the Australian market in economic terms is much lower.

I need to log off. The brown-outs are starting to kick in.

(Population sources: http://quickfacts.census.gov/qfd/states/06/06037.html, http://www.abs.gov.au/ausstats/abs@.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument)
Yeah i am gonna have to walk to work tommorow, my kangaroo needs a rest
;)
 

300ZX

macrumors member
Oct 13, 2005
35
0
And this is why the entire world hates Americans
That's terrific! I was actually considering study abroad to Australia, but since you and the entire rest of the world hate us Americans, why bother?

You guys may have a point, but you are just coming off as pricks with your anti-america comments. For all I care you could burn the stars and stripes, but generalizing that the whole world hates a particular culture shows pretty extreme prejudice.

Does the whole world hate the Middle East? It sure seems like it over here...
 

barneygumble

macrumors 6502a
Apr 18, 2005
726
0
300ZX said:
That's terrific! I was actually considering study abroad to Australia, but since you and the entire rest of the world hate us Americans, why bother?

You guys may have a point, but you are just coming off as pricks with your anti-america comments. For all I care you could burn the stars and stripes, but generalizing that the whole world hates a particular culture shows pretty extreme prejudice.

Does the whole world hate the Middle East? It sure seems like it over here...
Another thing americans lack, a sense of irony:p

Note to all Americans I've had 8 beers (home brew too it is strong stuff)
 

adeptboy

macrumors newbie
Jul 16, 2002
4
0
Indiana
barneygumble said:
Another thing americans lack, a sense of irony:p

Note to all Americans I've had 8 beers (home brew too it is strong stuff)
nahh, it's not all americans that lack the sense of irony, just the one who voted for president bush.

:rolleyes:

acutally, fuel prices a re getting a bit high...where could i get me one of them kangee-roo-mobiles?
 

GorillaPaws

macrumors 6502a
Oct 26, 2003
930
6
Richmond, VA
300ZX said:
That's terrific! I was actually considering study abroad to Australia, but since you and the entire rest of the world hate us Americans, why bother?

You guys may have a point, but you are just coming off as pricks with your anti-america comments. For all I care you could burn the stars and stripes, but generalizing that the whole world hates a particular culture shows pretty extreme prejudice.

Does the whole world hate the Middle East? It sure seems like it over here...
Easy buddy.... macidiot basically called their country (a whole continent none-the-less) "marginal." That sort of thing tends to make people a little angry. The Aussies were joking us Americans because we tend to see the world from a very self-centered point of view. I think they're right, in general. I like to thing of myself as a smart guy, and I have to admit that I know almost nothing about their country, and that's kind of sad seeing as how I went to a magnet high school for government and international studies. I could tell you more about the history of Indonesia than I could about Australia. It's definetly on my list of places to check out before I die though. Anyways wasn't this supposed to be about the price of ITMS downloads?
 

SiliconAddict

macrumors 603
Jun 19, 2003
5,889
0
Chicago, IL
Staffroomer said:
Sounds to me like Apple has the upper hand in this situation. Too much power perhaps? I don't think so. The record companies have been in control too long!!!

Ummm no. No they don't. If the labels cut Apple off when it comes time to renegotiate their contract Apple can't say word one.