The Industry Is Shooting Itself Again

[Guest MikeSC]

Top music labels try to raise prices for downloads

>By Scott Morrison in San Francisco and Tim Burt in London

>Published: February 28 2005 02:00 | Last updated: February 28 2005 02:00

>>

 

Some leading music labels are in talks with online retailers to raise wholesale prices for digital music downloads in an attempt to capitalise on burgeoning demand for legal online music.

 

The moves, which suggest the labels want a bigger slice of the fledgling market's spoils, has angered Steve Jobs, the Apple Computer chief executive behind the iTunes online music store.

 

But music executives expressed caution about their ability to push through unilateral price increases. Among the biggest groups, Universal Music and Sony BMG are known to be particularly reluctant to disrupt the market for downloads.

 

One top label said it would not raise wholesale prices now because the market was not yet mature enough for an increase. The three other music labels - which also include EMI and Warner - refused to comment.

 

Analysts, meanwhile, are warning that price rises could exacerbate internet piracy, which is thought to cost the industry about $2.4bn (£1.2bn) a year.

 

Music industry executives said introductory wholesale prices for digital tracks had been set low to stimulate demand, but Apple's success had prompted concern that they may now be too low.

 

The effort suggests several labels believe demand for online music is robust enough to withstand higher prices, despite the fact that online sales are estimated to account for about 2 per cent of total music sales.

 

Michael McGuire, analyst at Gartner, said the move could backfire because consumers who buy music over the internet are accustomed to paying 99 cents or less for downloads.

 

Wholesale prices are thought to be about 65 cents. "It seems to me to be singularly bad timing," he said, adding that an increase could send fans back to underground services where they could get illegal music tracks free.

http://financialtimes.printthis.clickabili...&partnerID=1744

Yup, try to stem the bleeding of downloading for free --- so they want to raise prices before the whole "paying for music downloads" thing takes any hold?

-=Mike

[NoCalMike 0]

I still don't even know of people that pay for their mp3s, yet some make it out like it is stemming illegal downloading.

[LessonInMachismo 0]

I still don't even know of people that pay for their mp3s, yet some make it out like it is stemming illegal downloading.

Oddly enough, I know a guy named Mike and he is from NorCal, like myself, and he is a frequent user of iTunes.

[Jingus 0]

I don't know a single person who pays for online music either.

[Giuseppe Zangara 0]

The other day, I tried redeeming one of those Pepsi bottle caps that allows you one free download from iTunes. Doing so proved to be such a hassle that I gave up before completing the transaction.

 

Ya know, I like spending money on music, but I need something tangible. Paying for mp3s is about the dumbest thing.

[Slayer 0]

The other day, I tried redeeming one of those Pepsi bottle caps that allows you one free download from iTunes. Doing so proved to be such a hassle that I gave up before completing the transaction.

Ditto

[EricMM 0]

My dad buys music like that, as does another parent.

 

I really feel like the kids aren't buying the music, the parents are.

 

But I don't really know *anything* about buying MP3s so don't ask me.

[2GOLD 0]

I looked into buying songs online but it gave me too much of a headache. I'll just download the albums until I can get them for a cheaper price or until I can afford them full price.

 

And every album I buy, I delete if I had downloaded beforehand.

 

But if anyone is really surprised that the greed is making the recording industry want a bigger slice of an extremely small pie then I have this bridge in San Fran I'd like to show you. I think you'd be really interested in making such a purchase.

[bobobrazil1984 0]

I know many people who use iTunes. Some of them surprised me. it's just so easy.

 

I've used iTunes also, but mostly to get stuff I can't find in normal download channels. It's really slick an great. A price hike would suck ass.

[Art Sandusky 0]

I laughed at a girl once who said she was willing to pay for mp3s, or as she wrote in a note, "I'm willing to pay $$$." Who's dumb enough to 1) fall for the scare tactics about downloading being illegal or 2) pay for them?

[Prophet of Mike Zagurski 0]

I pay for mp3's only if:

 

1) It is a song I really like

2) It is hard to find anyother way.

 

Buymusic.com sucks because you have a number of times you can download the song and if the license does not get downloaded with it then you are screwed. I paid for a couple songs but I never got to listen to them. I e-mailed tech support (India) and got no help from them. I cannot put the songs on my mp3 player because it does not have Digital Rights Management. I can, however, burn these songs to a million CD's and then rip them on to the MP3 player.

 

MSN Music is good because the songs are bought through Windows Media Player. I have not had any problems with them.

[NoCalMike 0]

For that that do use itunes and other similar services, how does it work, is it like you are choosing from a pre-selected setlist that itunes decides on, because I mean what if you are into other types of music besides what is played on the radio. Could I purchase an itunes subscription and get a Suffocation mp3, or a BB King mp3 or would I be stuck with choosing from a slickly selected list of radio-play songs?

[Hawkius Maximus 0]

I've used Itunes. Bought two songs with it.

 

It's alright...their music selection needs some SERIOUS friggin help though.

 

Buying the actual songs is so simple. You set up an account, then hit a little button that says "Buy song". Confirm it when it asks you, and whalla. Song is downloading.

 

...A bit too simple really, it gets somewhat addictive.

 

Edit: Should add that the two songs I got were a Puffy Ami Yumi song and a Who song...so it does have some stuff that isn't top 40.

[Giuseppe Zangara 0]

Buying the actual songs is so simple. You set up an account, then hit a little button that says "Buy song". Confirm it when it asks you, and whalla. Song is downloading.

I registered an account back in December, when I got my iPod. If my ipod is plugged into my comp when I go to the iTunes music store, my name appears, showing I'm logged.

 

So, after some looking around, I find a song (one by Joanna Newsom, for what it's worth). I enter the passcode from the Pepsi cap and click "BUY." Though I was already logged in, I was greeted with a prompt saying that I had to log in again. After doing so, I tried the above again, only to be told that the code I entered was already in use and could not be used again.

 

I suppose if I dicked around for another five or ten minutes, I would've figured out the problem. However, as I said earlier in this thread, the hassle wasn't worth it.

[Guest Brian]

Am I the only person that buys albums anymore?

[Giuseppe Zangara 0]

I still do. Quite often.

[Guest Brian]

OK. Feeling left out here. Gotta support the arts.

[NoCalMike 0]

OK. Feeling left out here. Gotta support the arts.

I have no problem buying an album if I enjoy the majority of songs on there. I am just overall dissatisfied with modern music in general, that I am hardly buying or downloading anything from current acts.

[The Metal Maniac 0]

I buy albums more often then I download them.

 

I'll generally only download a few tunes and decide if the album is worth it.

[MarvinisaLunatic 0]

(MUSIC FOLDER CAMEO POST)

 

I would pay for downloaded music if it didnt take me 2 hours to download a 4 minute song, not including the pains of having my ISP disconnect me 54 times during that span and having to resume the download (or worse, have to restart it from the beginning).

 

Im never going to get a speedy connection where I live so thats that.

[Red Baron 0]

Buy music?

 

 

Never.

[The Czech Republic 0]

Ya know, I like spending money on music, but I need something tangible. Paying for mp3s is about the dumbest thing.

That's how I feel too.

[IllustriousOne 0]

Joanna Newsom is worth the effort.

[Guest Agent of Oblivion]

I thought incandenza only stole things.

[Spaceman Spiff 0]

He stole my heart.

[SamoaRowe 0]

I had one of those free iTune downloads from under a Mountain Dew cap and I was going to capitilize on it until I realized how much of a pain in the ass it would be to get it.

 

So I went on Limewire and downloaded five songs for free.

 

The music industry can bite my ass, I've given them enough money throughout the years.

[Giuseppe Zangara 0]

I thought incandenza only stole things.

Sometimes Wal-Mart doesn't have what I want!

[Jobber of the Week 0]

Someone want to tell me what's so hard about this?

 

Step 1:

 

Step 2:

 

Step 3:

 

Step 4:

 

Yes, if you don't have an account with them, you have to sign up, but that part is no harder than signing up for any other online store like Amazon.com or eBay.