Apple Threatens to Close iTunes Store Over Possible Royalty Hikes

[apsterling]

you make music on itunes?
and you really win that much
wow its amazing

I don't sell too much cause my name's not out there, but by the five songs I've sold (sad, right?) I've made $3.15

3.15/5 = 70¢ (granted, it doesn't work out evenly to 3.15, therefore 68¢)

There's alot of misconceptions as to how iTunes works and who gets paid. On a label it's different, because I write and release my own music, and myself, Apple, and the distributor are the only three involved. In one song it cuts out like this:

99¢
--68¢ - Myself (In other cases the label is in charge from there)
--9¢ - Apple
--22¢ - My Distributor

That 68 is variable dependent on the label.
Since there's no middleman or splitting for my music, I get all 68¢.

 

[megfilmworks]

Personally, I think $.99 is too much. Now that I think about it, $.15 sounds about right.

A 45 rpm single (which cost pennies to press) sold for $.99 in the 60s
when gas cost around $.25 a gallon.
Wake up and smell reality. Music is a bargain at $.99.
Complain about something that matters, like gas or electricity, or water.

 

[137489]

for all those squabbling about how much an artist makes....

ok, digging into my past, that I normally like to forget....

For a while I used to manage local bands (I was in my early to mid twenties). let's say an original local band that has not hit the main stream yet, plays a *ahem* bar. and they make $300 a night (good luck, that was the highest ($600 for a weekend)- most only collected the cover charge or only got $100 a night. now divide that over 4 people. then you only have $50 to $150 per person. then subtract out travel costs to the performance, paying the lighting crew or sound technician. Paying the person who manages you, then maintenace of your equipement (broken drum sticks, new heads, new guitar strings), etc.

basically you are left with nothing - then you take the measly $50 to $100 for your homemade CD sales to go into a professional studio.

It is a losing game until you get picked up by a major record label. Most of the time I was lucky if I made $1 for every hour I spent with these bands. Luckily I had a full time job. Of course there was other benefits, but until you start becoming popular; there is no money in it.... then there is always the club owner who takes advantage of you - like booking you for $300/night for a 3-day performance, and then only paying you $300 when all said and done because the headlining act cancelled. yet, you had to cover the entire weekend (ie playing double your sets to cover for the cancelled band).

I say more money needs to go to the artist and the managers, and less to the music stores....

 

[inkswamp]

First of all, as an independent artist with CDBaby, my band gets $.65 per song and $6.50 per album download from iTunes. That's because as independents, we own ALL rights--song, recording, publishing, the whole enchilada.

[...]
People make the RIAA out like its the Gestapo. Don't steal stuff that isn't yours and they'll never bother you. If someone stole the mower out of your [...]
"Record labels are so rich...pop stars are so rich...greedy execs are so rich..." What class-envy claptrap. Grow a pair and stop whining. Listen to

I'm surprised nobody has responded to your post. I think it's one of the best things I've read online in a long time and I appreciate your having taken the time to write this. I agree with about 95% of what you wrote.

I would take issue with the way you downplayed the role of greedy execs and record labels. That's a fact about the record industry that many artists have spoken out about and something that needs to be addressed. Before artists raise the prices on their music and pass the costs to their fans and supporters, they should rethink and/or renegotiate their royalty arrangements with the big music companies. The music industry has changed dramatically in the last decade, and I suspect the business model (particularly in regard to artist payment) has not kept pace.

And if the music companies won't comply, then these artists need to go independent.

 

[!¡ V ¡!]

ROTFLMAO.

This is like Microsoft saying, "We will stop producing Microsoft Office."


hahahahahaha funniest news all day, Apple trying to play the threat game while. I like you Apple however the only recourse at your disposal is to increase prices yourself with a minor loss in the transition.

 

[ArtOfWarfare]

Oh yes, let's encourage piracy more, shall we?

 

[jojo13]

This thread is about what goes to the songwriter / publisher
(as you said; the right of the music)
It is 9 cents, they want to raise it to 15 cents.

oups sorry my bad never mind what i was saying

 

[kjs862]

If they closed down the itunes store wouldn't it be just hurting themselves? This is confusing.

 

[trevorlsciact]

Complain about something that matters, like gas or electricity, or water.

hey music does matter you know

 

[137489]

I'm surprised nobody has responded to your post. I think it's one of the best things I've read online in a long time and I appreciate your having taken the time to write this. I agree with about 95% of what you wrote.

I would take issue with the way you downplayed the role of greedy execs and record labels. That's a fact about the record industry that many artists have spoken out about and something that needs to be addressed. Before artists raise the prices on their music and pass the costs to their fans and supporters, they should rethink and/or renegotiate their royalty arrangements with the big music companies. The music industry has changed dramatically in the last decade, and I suspect the business model (particularly in regard to artist payment) has not kept pace.

And if the music companies won't comply, then these artists need to go independent.

the problems with going independent:

1. contracts you are already in with the record companies
2. Now you have to take time away from making music and practicing to get into the business, marketing , etc. More business = less time to make new music = more burnout in the industry.

Also, if you go independent, you loose the well known record company/producer pulling for you. I mean, some of the music today just stinks, and I wonder how many would actually not make it if it were not for the big named producers marketing them. Some producers take a chances on a crappy no name bands, just to write off some expenses. the band then makes out with exposure by being 2nd or 3rd billing to a big name band in concert.

I am not being ugly, but it is the nature of the business (and why I put my focus elsewhere and decided to get out while I was still young).

maybe a lot has changed... but for 5 years, I was in the local New England Area with start up and cover bands. oh, some were good and could probably get a major record deal with a little more effort on their part to go into the studio - but getting the exposure can be difficult (especially if you are not a cover band - some popular clubs do not want to take a chance on an all/mostly original band).

One of my bands played a local event in front of 4000 people, for the next year following that performance; they sold out every performance but they made mistakes that cost them big and thus no studio wanted to do business with them. they tried to go independant, but without the big producers, they lost the marketing exposure.

 

[ellsworth]

It's clear that the paid mp3 world revolves around Apple. I wonder how the industry would like it is Kazaa, Hotline and Macster came back strong! Ha!

I'm pretty sure apple wouldn't just stop like that. I think they would drop those who challenge them... but wait would be a universal thing for all pay tracks right? Not directly towards individual record labels..

Everyone is trying to get more money is every corner they possibly can. I hope apple shuts down itunes. Show their greedy ass' who's a greedy lesson.

If you read closely, Apple Says: iTunes Music Store. This leaves The App Store, TV Shows, Music Videos, Movies, Rentals and iPod Games. Apple knows what they're doing. They wouldn't make a threat if they didn't mean it... Apple is known for keeping their word

The music portion of apple makes revenue + profit but it's not the only source for Apple. They still have Computers and other electronics aside from what I mentioned above. Yes it would hurt Apple but it would hurt record labels and others much much more.

Take away a bottle from a baby after it's been using it for awhile and you'll see what happens...can't wait to see how this pans out.

 

[ddh4000]

What????

I would gladly pay more than $0.99 per song if I knew that the artists were getting more. But I don't particularly care to pad the pockets of record companies and other music industry execs any further.

Artists abuse their money ie: DRUGS (amy winehouse), WEIRDNESS (michael jackson), LAWYERS (snoop dogg),DIVORCING PEOPLE THEY SHOULDN'T HAVE MARRIED AND PAYING IT TO THEM (paul McCartney)

The artists need more money like I need less money.

 

[apsterling]

Artists abuse their money ie: DRUGS (amy winehouse), WEIRDNESS (michael jackson), LAWYERS (snoop dogg),DIVORCING PEOPLE THEY SHOULDN'T HAVE MARRIED AND PAYING IT TO THEM (paul McCartney)

The artists need more money like I need less money.

What about Farewell (New Instruments, Tours), Motion City Soundtrack (Tours, Exposure), Mutemath (Exposure, Tours), and the like.

You're taking a small subset of "artists".

Maybe you do need less money, since it gets you access to the internet and thus wrong statements.

 

[PBG4 Dude]

I don't want to speak for him, but personally, I've been using Amazon's MP3 store since it opened and I haven't looked back.

I know that any song that I get from them is DRM-free. Sure, Apple offers some DRM-free songs, but not all. I don't waste time checking Apple first, I just go straight to Amazon.

I click on the BUY button and a few seconds later the song is in my iTunes list automatically.

Just as easy as the iTunes store and always DRM-free.

Have to agree, the Amazon store offers better value in higher bit rate encoding, sometimes lower prices, and no DRM that can get shut off at any time (just ask people who bought music from any of the recently-shuttered PlaysForSure music stores how they feel, I don't want to end up in that boat).

 

[mlg32]

I say NO WAY!! BULL****

there is no reason to raise the price of the music, it is purely the music assoc trying to get more for free, that greedy mentality is what has gotten this country in the mess it is financially, I say stand your ground apple and shut it down or cut the music from that assoc and do NOT get strong armed by these bandits

 

[137489]

hey music does matter you know

Actually yes.

Music can stir up emotions
Music can bring back memories
Music can bring people to worship
Music can make you laugh, sing ,etc
Music can relax you (or make you bang your head)
Music can liven up a night.

I agree. music does matter, even in heaven as we hear about singing around the throneroom of God.

I could not imagine a life without music (albiet, I do not like every form - but there is a lot I like).

 

[D*I*S_Frontman]

A 45 rpm single (which cost pennies to press) sold for $.99 in the 60s
when gas cost around $.25 a gallon.
Wake up and smell reality. Music is a bargain at $.99.
Complain about something that matters, like gas or electricity, or water.

The voice of sanity. Thanks for some well-needed perspective.

 

[MacTraveller]

If they closed down the itunes store wouldn't it be just hurting themselves? This is confusing.

Actually, it would be hurting everybody. The entire industry would be poorer for it if the iTunes Store were to disappear suddenly. Please realize that even if iTunes Store has its flaws, it is responsible for raising the bar for everyone else. That's why everyone else started creating their own online music stores (e.g. Amazon) and "app stores", copying Apple's model and copying Apple's success for the most part.

Whenever Apple can improve on their products and services (like making improvements to the iTunes Store), then the rest of the world will copy Apple and try to improve THEIR own services and products, just to be able to catch up to Apple.

 

[Kwill]

i think something like
10-15 cents for the artist
15-20 cents for the music record
20-30 for the right of the music (wich i think goes to the music record too)
the rest about 50-60 cents, for Apple, but in that 50-60 cents, lets say:
20-30 cents for the supervising itunes all the time
10-15 cents for other things
so Apple would keep 5 to 20 cents per song

Correct me if Im wrong cause im not sure on everything

When Steve Jobs introduced the App Store to developers he said they are offered the same deal as the recording companies: 70/30 percent. Apple receives the latter, with which they must maintain and promote the store, leaving them a profit of around a nickel per download - about the same the record labels give to the artists.

 

[donga]

apple news recently has not been good: iphone app: developers unhappy, stock price dives: investors unhappy, possible iTMS closure: lots of unhappy music fans.

i haven't bought anything from itunes in a while, just the podcasts.
drm free $3.99 t.i. paper trail and $2.99 new pcd on amazon

what's better? 3.99 drm free, or 9.99 drm

not a good slope to be on right now

 

[D*I*S_Frontman]

I'm surprised nobody has responded to your post. I think it's one of the best things I've read online in a long time and I appreciate your having taken the time to write this. I agree with about 95% of what you wrote.

I would take issue with the way you downplayed the role of greedy execs and record labels. That's a fact about the record industry that many artists have spoken out about and something that needs to be addressed. Before artists raise the prices on their music and pass the costs to their fans and supporters, they should rethink and/or renegotiate their royalty arrangements with the big music companies. The music industry has changed dramatically in the last decade, and I suspect the business model (particularly in regard to artist payment) has not kept pace.

And if the music companies won't comply, then these artists need to go independent.

Thanks.

A lot of artists, giidy with the prospect of getting "signed", sell themselves into indentured servitude when they sign recording contracts without having a lawyer go over the "fine print." So "greedy execs" can only be as greedy as clueless artists let them.

These days, enough music industry self-help books have been written that no artist has the excuse of ignorance or gullibility. The music biz is ruthless and full of sharks. An artist should know that going in and prepare accordingly.

There is only one remaining reason for ANYONE to sign with a label--MARKETING. They have the advertising and the payola schemes (legal nor otherwise) to push your music on the public. That is all they are good for now. Fantastic sounding albums can be made in home studios, and via CDBaby independents can get on all the biggest P2P download systems, into all brick 'n' mortal CD stores via special order, and direct through CDBaby. For a whopping $35 set-up fee.

If there were a way to actually help independents with effective MARKETING, labels would go the way of the dinosaur.

 

[MacOldTimer!]

It's clear that the paid mp3 world revolves around Apple. I wonder how the industry would like it is Kazaa, Hotline and Macster came back strong! Ha!

I'm pretty sure apple wouldn't just stop like that. I think they would drop those who challenge them... but wait would be a universal thing for all pay tracks right? Not directly towards individual record labels..

Everyone is trying to get more money is every corner they possibly can. I hope apple shuts down itunes. Show their greedy ass' who's a greedy lesson.

If you read closely, Apple Says: iTunes Music Store. This leaves The App Store, TV Shows, Music Videos, Movies, Rentals and iPod Games. Apple knows what they're doing. They wouldn't make a threat if they didn't mean it... Apple is known for keeping their word

The music portion of apple makes revenue + profit but it's not the only source for Apple. They still have Computers and other electronics aside from what I mentioned above. Yes it would hurt Apple but it would hurt record labels and others much much more.

Take away a bottle from a baby after it's been using it for awhile and you'll see what happens...can't wait to see how this pans out.

Apple these days is NOT known for keeping their word. They are in the market for making as much money as possible. This is the week they gave 9 people 20 million worth of stock options. This is for Key Management.

I think they can afford the extra couple pennies with these types of Payouts to senior management. Sounds a lot like what's happening in the Market these days.

Cry for help because you can't make a profit and give Senior Management $20 Million dollars.

Apple is out for Apple these days so Fan boys go away. The Truth is hard to hear.

By the way, they will find a way of screwing up the Adobe deal to get Flash on the iPhone. A lot of you don't want it but I do. I follow sports and the sites I go to are primarily Flash driven. So No I don't have the Internet in my pocket.

I have a phone that gives me a cube with anything but QuickTime or YouTube and a phone that doesn't give me Flash. So NO I don't have the Internet in my Pocket. I have what Steve/Apple Chose to give me.

 

[benpatient]

This band of thugs needs to look at NBC, the last company that took their toys and left the iTMS.

*looks at Season Pass of The Office*

I rest my case.

NBC got their way. They have 4 major digital distribution points for The Office, and the iTMS is the only one where the consumer has to pay to watch.

I can't understand why anyone would buy an episode of a TV show that is available on Hulu for free.

I do think Apple should close the store and see what happens. The fact of the matter is that Amazon.com makes money on its digital downloads, and they are still cheaper than iTMS songs, without DRM and at a higher bitrate, despite constant "they will raise the price after a few months" claims on this site. You can still get most tracks for 10-20 cents less than Apple's DRMed versions, and 30-40 cents less than the iTunes Plus tracks, those few that are available on the iTMS.

My company has had the "Plus" contract for the iTMS signed for over a year, and Apple still hasn't enabled "Plus" downloads of our catalog. the iTMS, for all of its success, is understaffed and underdeveloped by Apple. There are some talented people there, but most of them are not as capable as you might expect.

I don't think Apple is paying the iTMS people on the same scale as it pays engineers and product development guys. Amazon MP3 staff are much more on top of things.

 

[3rdpath]

yea, right...apple's gonna shut down itunes over a 6 cents increase in product cost that actually goes to the artist or copyright holder.

the whole point of itunes is to sell their hardware via their superior software/music integration.

what a ridiculously transparent load of BS this bluff is.

just for grins i say-shut it down ya big whinger.

 

[Adjei]

I think Apple is just buffling, where else would I get my music.