Notes from Apple's Meeting with Indies

[MacRumors]

On June 5th, Apple met with independent labels to discuss adding their content to the iTunes Music service.

CD Baby! provides some very interesting notes from the meeting. According the site, approximately 150 representatives attended and received a 2 1/2 hour session on the iTunes Music Service.

The current rate of sales of the iTunes Music Store is 500,000 songs a week, with a total sales of 3-5 million. Another interesting stat is the ratio of previews:sales which is 10:1, indicating 10 previews for every sale. The notes also provide details on the way the iTunes music store works as well as Apple's policies on music distribution. The overriding theme seems to be equal-opportunities for all comers, with no special deals or treatment. "Same deal. Same agreements. Same team of people. Same treatment, all-around."

Payment details were not specified and will be provided with individual contracts. As expected, individual artists may not participate. You must be signed to an "iTunes partner".

 

[mangoman]

Right ON! This is great news. Time to spend even MORE money in the iTunes store...

 

[Floop]

I want to know the mechanics of this...

I mean, how does it work?

Will the distributors courier over boxes of CDs to Apple, for them to log in a database, then rip in iTunes 4, then put the encoded file into some directory?

Do they have a massive warehouse - like at the end of Raiders of the Lost Ark - filled with CDs upon CDs?

Do the distributors give Apple information on what tracks they are allowed to rip, or does Apple have to figure that out by reading the copyright information on each track?

I would like some information about this, simply because it is such a cool idea, I want to know how it works. Maybe there will be a show on Discover Channel about it soon

Floop

 

[arn]

Re: I want to know the mechanics of this...

Originally posted by Floop

I would like some information about this, simply because it is such a cool idea, I want to know how it works. Maybe there will be a show on Discover Channel about it soon

Floop

Read the Linked Article

 

[.a]

no word about europe? have there been any european labels?
i hope, the service will be very soon world-wide. people talking about by the end of the year. but i hope apple will surprise us...
.a

 

[freddiecable]

I agree - when does it come for us non-US-residents!? It's really going to increase sales with support for Europe!

 

[robbieduncan]

Sound like (why am I surprised) Apple is being pretty fair. The same deal for everyone (sort of - were any non-US indies invited?). But I'm not sure it's exactly the same deal. For example the artical states that albums cannot sell for more than the total of their tracks, that individual tracks cannot be more than 99c and all individual tracks have to be for sale seperatly (unless they are more than 7 minutes long). Some Pink Floyd albums already up retain for $9.99, have ~ 5 tracks. Now as the songs are more than 7 minutes long maybe it works. I'm sure I saw some other albums where the individual tracks were not available and the tracks were less than 7 minutes long.

 

[Toodles]

Re: I want to know the mechanics of this...

Originally posted by Floop
Will the distributors courier over boxes of CDs to Apple, for them to log in a database, then rip in iTunes 4, then put the encoded file into some directory?

The article does give the answer to this, but just to note - the same thing applies to all the major labels - Apple hasn't encoded any of the music.

Originally posted by robbieduncan
Sound like (why am I surprised) Apple is being pretty fair. The same deal for everyone (sort of - were any non-US indies invited?).

I don't know whether they were invited to that event, but one of the UK indie associations has already been in talks with Apple. The association is now going around the labels getting them to sign on.

 

[Floop]

Re: Re: I want to know the mechanics of this...

Originally posted by arn
Read the Linked Article

Good idea! I had forgotten about that (d'oh).

For anyone that didn't read that article - like stoopid ol' me - it is extremely interesting.

For instance - Apple charges the distributors NOTHING... and the distributors do the encoding and uploading THEMSELVES - cunning!

 

[Nutzoids]

It would be cool if some Local un-signed bands could upload songs so others can have them as well!

 

[robbieduncan]

Originally posted by Nutzoids
It would be cool if some Local un-signed bands could upload songs so others can have them as well!

The site linked above with the artical seems to more or less offer this at the moment with real physical CDs. They state that they are going to become an iTMS partner. So by using them pretty much any band will be able to get on iTMS (not sure whether you'll have to provide CDs to cdbaby to sell as well or whether they'll let you send them a CDR to put on iTMS).

 

[peterjhill]

After recently listening to "The Second Coming of Steve Jobs" I hope that Steve does not retaliate against cdbaby. He can be pretty tough (very very very tough) on people who steal his thunder.

My first purchase from the cdbaby catalog will definitely be:
Prozac for Lovers

A mellow lounge duo doing classic hard rock cover songs. Bowie and The Clash as bossa nova? The ultimate lounge party CD. Dripping with sarcasm, dusted with irony, drowned in cynicism.

This could turn apple into a very big player in the music distribution industry. I like how Apple bases the top sellers on the last 24 hours of sales. I often preview artists I have never heard if I see them on the lists.

I am up to 135 purchased tracks...

 

[TylerL]

...interesting.
If labels do the actual encoding, and Apple does the 30 second previews, then Apple would be encoding previews from the compressed version.
...meaning that the previews DO sound worse than the actual songs like was mentioned awhile ago.

 

[drastik]

Originally posted by peterjhill


I am up to 135 purchased tracks...

I'm up there with you. Apple hit a great idea aimed at people like me. I had fallen out of the habit of buying CDs because I hate so much popular music, but now I can preview at home and pick and choose, My music spending is through the roof.

Having the indies on board will be a great help, I just hope they go for some hip-hop labels. I'd love some real undergroud stuff, like Aceyalone or Abstract Rude, PRoject Blowed, Freestyle Fellowship, all would be cool. Then Roots Manuva in England and there's a whole slew of French MC's and german MCs.... maybe I should just email iTMS about it, I'm getting all excited.

 

[Stella]

All very good, but...

Hi

That article is excellent, gives a good insight of how things worked.

Good to see that each company gets the same deal, no favours. Also, that Apple don't take 'bribes' (money) to put extra content up.

HOWEVER, I really hope all this indy stuff isn't slowing down the process of Apple negoating to bring the service to the *rest* of the world - ie, the majority population.

 

[JLL]

Originally posted by TylerL
...interesting.
If labels do the actual encoding, and Apple does the 30 second previews, then Apple would be encoding previews from the compressed version.
...meaning that the previews DO sound worse than the actual songs like was mentioned awhile ago.

Why? I don't think the previews are reencoded.

 

[snahabed]

CDBaby looks so cool! I never heard of it before, so thanks everyone

Has anyone bought stuff from them? I am just curious as to whether one has to go all out (e.g, get a professional printer to do jewel case inserts and cd labels) or if Discus is good enough :-D

 

[Ugg]

The fact that Apple will not accept positioning money is excellent! No chance of payola scams. The info about exclusive tracks is very, very interesting. Apple wants to be the source for tracks that can be found nowhere else and might provide extra exposure to groups who do so. Very smart move. Also, the licensing agreement is non-exclusive meaning that Apple will not monopolize the industry.

Very encouraging information. I hope iTunes goes global soon, selling and buying music, and the M$ version comes out within a couple of months.

Way to go!

 

[nitz]

$41 billion in the bank?

That has to be a typo right? Wasn't it somewhere under 5bil at the last stockholders meeting?

 

[nosaj72]

CDBaby is cool. I've bought a few CDs off of them. (A band called "The Bears"). They are a first class operation with a great sense of humor. I highly recomend them.

I'm excited to think they might be part of the iTunes store. The main problem with it I have so far is its lack of more interesting music...

 

[zarathustra]

I am looking forward to the day, when I launch iTMS and can browse music from independent labels, say in : Iceland or Hungary! Here is with fingers crossed that I can buy a CD from Kispál és a Borz for under $9.99!

PS:

I lived in Hungary and got hooked on them, in case you wonder who Kispál és a Borz is.

 

[iJed]

10 previews for every sale may be good but this will improve once international users are actually able to buy songs. I live in the UK and have browsed through iTMS quite a few times and previewed songs. Sadly I am unable to buy them at present but hopefully this will change soon.

 

[macFanDave]

Re: cash typo

>> $41 billion in the bank?


>> That has to be a typo right? Wasn't it somewhere under 5bil at the last stockholders meeting?


That's off by a decimal point, it should be $4.1 billion ($4,1 thousand million US dollars to you Europeans.)

 

[yzedf]

Still locks out the true independent bands (ie not signed with anyone). "iTMS partner..."



planeside is a good example. (friend of a friend)

 

[matty8r]

CDBaby

Originally posted by yzedf
Still locks out the true independent bands (ie not signed with anyone). "iTMS partner..."

CD Baby said that they would be a conduit for the true independents. Sounds good to me.