Apple iTunes Australia - Oct 3rd?

[MacRumors]

Forbes report that Apple may finally be launching iTunes Australia on October 3rd.

Apple is working to expand iTunes and plans to open up an Australian version of its iTunes online music store Oct. 3, according to people familiar with the negotiations.

The opening, however, may only have a limited selection available to Australian users. According to Forbes, two of the four major music labels have agreed to sell their music on the Australian iTunes. Both Sony and Warner Music have yet to sign on. This has likely been the cause of the long delays in seeing the coming of the Australian iTunes Store.

The source of the disagreement appears to stem from Apple's insistence of pricing all songs at a common price ($.99 in the US). The labels are pushing for a tiered pricing model with premium songs priced higher, while older songs would be discounted.

The same argument appears to have delayed Sony's appearance in the recently launched iTunes Japan. According to Japan Today however, Sony and Apple appears to have come to terms in that market.

 

[samh004]

while a limited music selection would be bad, at least it'll be out there and stop me and possibly others from downloading illegally as there would be a legal alternative.

Hopefully with it out there and doing well the pressure will be on the other 2 music labels to sign on too.

 

[broken_keyboard]

I figure Sony will back down as in Japan. There is just too much money to be made by having their songs on iTMS.

 

[gekko513]

I wish the music labels would realise how fragile the legal download market is and how easily customers will stick to file sharing or switch back to file sharing if they price the music too high.

Even I, who consider myself to be very anti-piracy, would be tempted to go elsewhere if the prices of so called hits was double that of todays iTunes Music store prices.

 

[lopresmb]

that would be nice, I know australia's been waiting a while

 

[DeSnousa]

that would be nice, I know australia's been waiting a while

Yeah I'm so pumped, however it will be another half a year before I'm 18 and can purchase music as I need to get a credit card.

Hopefully by the time that happens we will see all the record labels in the deal. Big mistake on the music industry side

 

[ibook30]

Tiered Pricing

Has anyone heard what kind of prices the music industry wants? $2 for a new song 25 cents for an old one??

And- Has apple resisted, or are they just negotiating ??

I feel confident we will see price structure changes in 2006. The struggle to get itunes Australia up points in that direction - as well as countless oher stories about the apple and the music industry.

I like the simplicity itunes pricing offers right now - but am open to new structures. I don't want to be charged more to buy a new album on line instead of at a store - that'd make me reconsider.

 

[DeSnousa]

Has anyone heard what kind of prices the music industry wants? $2 for a new song 25 cents for an old one??

And- Has apple resisted, or are they just negotiating ??

I feel confident we will see price structure changes in 2006. The struggle to get itunes Australia up points in that direction - as well as countless oher stories about the apple and the music industry.

I like the simplicity itunes pricing offers right now - but am open to new structures. I don't want to be charged more to buy a new album on line instead of at a store - that'd make me reconsider.

Last rumour had the prices at AUD$1.75. Expect around there and older music being cheaper.

 

[andiwm2003]

I wish the music labels would realise how fragile the legal download market is and how easily customers will stick to file sharing or switch back to file sharing if they price the music too high.

Even I, who consider myself to be very anti-piracy, would be tempted to go elsewhere if the prices of so called hits was double that of todays iTunes Music store prices.

with music sold via itunes the costs go down for the music companies. in an open market that would lead to price reduction. but of course that's not what the music industry wants. they want to increase their sales.

so far online music sales are only 2% of their sales, but that will change. and then the greedy music managers will have to decide to either sell for reasonable prices or drive vast numbers of people into illegal downloading. maybe they have to accept that music will be less profitable in the future and that the sales numbers (in $) will go down. how about not giving multimillion dollar contracts to artists and managers and spending less on excessive parties for celebrities to compensate for lower prices?

but it's great that australia finally gets their itunes store. it's about time.

 

[Ja Di ksw]

I honestly don't understand why they are pushing to raise the price. All the analysts are saying it's a bad idea, people will download illegally, yada yada yada. Everyone knows the reasons against it.

Yes, the music companies want to make money. Yes, they are notoriously a** holes. But people seem to think those two things make companies into morons as well. The people at the top are not sitting there tapping their fingers together and saying "Screw the public! Let's charge tons of money! I want more money! Where's a baby I can eat?!" They are going to be trying to work out how much money they can make, and they have to realize that they will make less if they up the price and lose the majority of their market.

 

[wordmunger]

Yeah I'm so pumped, however it will be another half a year before I'm 18 and can purchase music as I need to get a credit card.

Hopefully by the time that happens we will see all the record labels in the deal. Big mistake on the music industry side

I have two teenagers, and whenever they want to buy music from iTMS, they just give me the money and I give them a gift certificate. Here's hoping the rumors are true and you'll be able to do the same in less than a month.

 

[GilGrissom]

This is very good news, even though I'm not in Australia! I'm all for everyone to enjoy iTMS. Everyone should have access to it. I hope it comes through nicely for all you Australians out there!

 

[Detlev]

Yeah I'm so pumped, however it will be another half a year before I'm 18 and can purchase music as I need to get a credit card.

Hopefully by the time that happens we will see all the record labels in the deal. Big mistake on the music industry side

Why a credit card? Don't you have a bank account? Get a debit card or just have your parents purchase a gift certificate or pay an allowance through their card.

 

[quigleybc]

Where's a baby I can eat?!"

Many record execs are, in fact, cannibals

 

[Detlev]

Industry practice is front-line titles at full price and catalog at 65% or less depending if it is midline or budget. Expect midline to be no less than the .99/song ($10/album) they are already in the U.S. so that could imply at least 1.50/front-line song. Exaclty where the music industry wants it, if not just shy of it.

The music industry is kicking and screaming as they get pulled into this. It is a slow moving industry and outsiders are rarely welcomed with open arms (unless an insider "discovers" them). Expect more give from the Apple side as there has been somewhat of a consolidation throught the industry and in order to get the remaining big artists and good catalog they will have to play with the old fellas, and the old fellas know how to play. Too much money is riding on this for Sony/Warner to back down.

 

[Dr. Dastardly]

What the hell is up with Sony? They always seem to be ***** up the iTunes for everyone around the world.

 

[longpath]

Being unable to buy in the different stores is a pain

To be blunt, I find it a horrible nuisance that I am forced to engage a third party someone in another country in order to purchase music from the iTunes music stores of other countries.

As a jpop fan, I am accustomed to paying high prices, which has not had the effect of driving me to illegal sources; but it has had the effect of radically curtailing my discovery of other groups/performers because I simply can not afford to take a chance on someone's CD that I've never heard at $45 USD per disc. I doubt that I am the only such person in the US.

I don't know if other jpop fans bide their time, as I do, or if they turn to illegal sources; but I do see that the options for legal purchase are either cumbersome or absurdly expensive.

I hope that some day, I will be able to purchase freely, wherever the music is available, without having to enlist a lieutenant in that store's native country in order to purchase online! I expect such oddities with brick and mortar stores; but it's peculiar to say the least when the store in question is online only.

As an addendum, has anyone noticed that you can not even download the "free song" of the week from an iTunes store other than your home one? If it's free, why on Earth should it matter where I live? Since it's supposedly free, to my mind, I should need absolutely no currency of the hosting country in order to acquire it. Consequently, I should be able to just waltz in, go to the free download of the week of whatever country I like, and enjoy the diversity! Instead, I get escorted back to my home market iTunes store, whether I like it or not.

 

[Kobushi]

I love Austrailians!




but corporate execs generally suck. I hope you don't get screwed on the pricing scheme. At least you have Steve on your side.

 

[Lacero]

First, whoever controls the content/copyright, controls the market. As it should be. That is VERY well covered in copyright law.

Second, it will never, ever, ever be cheap to obtain copyrights. Because of these laws, part of the ancillary crap is that you can't get iTunes in Australia. Because what allows one guy to do one thing, prevents another guy from doing his thing.

 

[dontmatter]

Yeah I'm so pumped, however it will be another half a year before I'm 18 and can purchase music as I need to get a credit card.

Hopefully by the time that happens we will see all the record labels in the deal. Big mistake on the music industry side

Debit should work, and is much easier to get.

 

[rockthecasbah]

To be blunt, I find it a horrible nuisance that I am forced to engage a third party someone in another country in order to purchase music from the iTunes music stores of other countries.

As a jpop fan, I am accustomed to paying high prices, which has not had the effect of driving me to illegal sources; but it has had the effect of radically curtailing my discovery of other groups/performers because I simply can not afford to take a chance on someone's CD that I've never heard at $45 USD per disc. I doubt that I am the only such person in the US.

I don't know if other jpop fans bide their time, as I do, or if they turn to illegal sources; but I do see that the options for legal purchase are either cumbersome or absurdly expensive.

I hope that some day, I will be able to purchase freely, wherever the music is available, without having to enlist a lieutenant in that store's native country in order to purchase online! I expect such oddities with brick and mortar stores; but it's peculiar to say the least when the store in question is online only.

As an addendum, has anyone noticed that you can not even download the "free song" of the week from an iTunes store other than your home one? If it's free, why on Earth should it matter where I live? Since it's supposedly free, to my mind, I should need absolutely no currency of the hosting country in order to acquire it. Consequently, I should be able to just waltz in, go to the free download of the week of whatever country I like, and enjoy the diversity! Instead, I get escorted back to my home market iTunes store, whether I like it or not.

well you can make an account for another store . i am a US and UK accountholder...I opened it up with that times free song thing in the UK store and now use it to download the freebies!

 

[DeSnousa]

Debit should work, and is much easier to get.

I didn't know that, if so that's great. As for the above poster, my parents don't have credit cards, they don't believe in it.

 

[Doctor Q]

Much as I'd like to see Apple get this show on the Aussie road, there's a logical reason for tiered pricing. I'm not an economist, but I know that a simple rule for the "proper" price for anything you want to sell is "whatever somebody will pay". The principle of supply and demand doesn't apply very well to online music, since the supply is infinite (other than bandwidth capability for the whole store), so the value of a song depends mostly on its demand/appeal, which is higher for new releases. So the value of a new song is higher than the value of an old song.

Of course, retailers of books and music often discount new releases to attract shoppers, who then buy other items, so a price decision isn't always based on value alone.

Apple's "one price fits all" iTMS pricing policy has two things going for it: simplicity and proven success.

My point is that, in arguing for another model, Sony and Warner may be stubborn but they aren't being illogical. They and Apple need to work out what makes financial sense for all three companies. Since there is money to be made in this market, they certainly have incentive to work it out.

Perhaps they will come to a compromise where Apple pays tiered prices to Sony and/or Warner but charges a flat price to iTunes Australia customers. For Apple, getting less profit (or even losing money) on new songs would be counterbalanced by more profit for older songs.

 

[BornAgainMac]

Lost Opportunity

Look at all the revenue that was lost because they didn't have the store up sooner. "They" meaning the record labels. I am sure people made their own version of the iTunes Music Store with all tracks less than 99 cents each.
Much less than 99 cents.

 

[barneygumble]

Tiered pricing is good for me because i rarely buy anything new, i only buy older music, all this synthezised stuff is crap anyway.