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20 September 2005 20:23 by James "Dela" Delahunty
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Apple Computers CEO Steve Jobs has attacked major record companies, claiming that the world's biggest labels have begun demanding that the iTunes music store prices are raised. Speculation regarding iTMS price hikes has been around ever since the store launched with a strict music pricing policy. Jobs believes that these record companies are simply getting greedy and a price hike could damage their competition with online piracy.
"We're trying to compete with piracy," he said. "We're trying to pull people away from piracy and say, 'You can buy these songs legally for a fair price'. If the price goes up people will go back to piracy, then everybody loses." Jobs also reminded the labels of the sweet deal they are receiving from the iTunes store.
"The labels make more money from selling tracks on iTunes than when they sell a CD. There are no marketing costs for them." he said. "If they want to raise the prices it just means they're getting a little greedy." For months now more and more businessmen from labels have been anonymously complaining about Apple's pricing policies.
Some believed that Apple shouldn't have the right to set the prices of the music tracks they provide to the service. iTunes has sold over half a billion songs and the sales increase daily, so it's no wonder the businessmen over at the worlds largest record companies want to increase prices. Even a few cents extra per track multiplied by millions makes a whole lot of difference.
Source:
The Register
Permalink to this article
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Related articles:
Apple keeps tight grip on iTunes 99c price policy (4 May 2006)
Will record labels force variable pricing on iTunes? (3 April 2006)
Apple will make another announcement on Oct. 12th (4 October 2005)
Managers and Royalty collectors bite iTunes (3 October 2005)
Warner Music Group CEO hits back at Steve Jobs (25 September 2005)
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Apple tightens grip on digital music (5 May 2005)
Record executives upset with Apple? (15 April 2005)
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There are more user comments available, read them here |
| neo1000 (Junior Member) 21 September 2005 18:49 |
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To hell with them,99 cents seem too expensive to me already.
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| nonoitall (Member) 21 September 2005 20:39 |
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Agreed. Even at 99 cents per track the original artists only get like a tenth of that. Someone should host (completely non-DRM infected) files and sell them for like 25 cents per track. The artists can get twice what they get now and the overhead gets 5 cents per track. Makes sense to me - overhead should not get more than the actual artists.
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| Ryanm1311 (Newbie) 22 September 2005 5:33 |
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'Hmmm... Things should get cheaper once their is more demand for that product or service... '
well its a logical thing to do, well so we all think until they realise that they could probably make some more loot of us and hike up the prices, ya granted its more viable to decrease the prices to bring in customers but how long do you think that will last with all this high end retailer greed!!!
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| kapkirk (Newbie) 22 September 2005 8:07 |
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nonoitall,
Quote: "The labels make MORE money from selling tracks on iTunes than when they sell a CD. There are no marketing costs for them."
They make more money than selling a CD. My gripe all along. They are still to expensive to buy off the Internet. Not $.99, not $.79(and can't move it anywhere) it should be more like $.39-$.59 and I can do what I want with it. I'd like to have some product I could make 30% profit on every sale, let alone 70% profit. Greedy crooks!! And 1/2 the music they put out is garbage anyway.
Still not pirating, still not buying new CDs, and still not buying any online music yet, and this is why. :) F'k the RIAA AND the MPAA!!
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| nonoitall (Member) 22 September 2005 10:58 |
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Yup, I'm just amazed that so few artists have attacked the recording industry. After all, the recording industry does nothing but print CDs and cripple songs with DRM and they make ten times what the actual creators of the content do.
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| Thumper33 (Newbie) 22 September 2005 13:04 |
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Yeah, I'm proud of Steve for slapping the greedy record companies in the face in public...........
BUT....iTunes is a POS. A POS and a pig. My main desktop is a 3Ghz P4 with the Prescott core, 1GB of 400Mhz DDR ram.....and with iTunes just OPEN, not even playing anything, it sucks down 48% of my memory and about 25% of my CPU usage.
Then, once you do actually DL something, you can;t play it on anything BUT the iTunes program....you can't burn it with anything but the iTunes program.......it's freakin useless unless you have an iPod, which I don't need. Forget the pirating (unless the RIAA gets a blackeye fromt he lady who is brave enough to fight them in court) and forget iTunes. I'll just buy CDs, rip them to my HD and then sell the damn CD on eBay and I don't need to buy any $150+ piece of crap.
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| duckNrun (Member) 22 September 2005 14:33 |
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lol @ thumper! Thats telling them! Get your music for a fair price (after reselling the cd) and give someone else a fair price on the music as well. Of course some may question the validity of keeping a copy of the music AFTER you sell the cd... but hey... it won't be me! lol
Actually I seem to remember somewhere reading about how Apple basically don't get a thing money-wise from iTunes after paying the label. Anyone else remember that article from somewhere...???
If so this is even more greed from the RIAA.. wanting more money than the %100 of profits that they already get from Jobs. I'm no iTunes/Apple fan for no particular reason other that I use Windows and I won't buy crippled cd's. My music..My Way! Of course I would bet that most A/D'ers are already aware of ways to remove the DRM from the iTunes d/l's. But it's the point of the matter.
Actually why doesn't A/D have a guide for removing the DRM from iTunes...hmmm maybe this should be addressed? (or am I blind and it already has been? lol)
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| skopas (Junior Member) 22 September 2005 16:18 |
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Nothing will change with record co's. Greedy bastards. Even with this being in the limelight now, i still dont buy music ever. Last time i did was...................ummmmm........ummm..oh...yeah 2000.
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| farry2 (Newbie) 22 September 2005 16:36 |
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We shouldn't be surprised that the entertainment world wants us to buy more than 1 copy of their goods, even though it's just to back up the originals so they don't get damaged.
The computer world is so successful in making us buy more than 1 copy of their software, even if you want to put the same software you bought on 2 computers.
Why shouldn't the entertainment world cash in on their greed?
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| Wild9 (Junior Member) 22 September 2005 17:08 |
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Oh, here we go..put up the prices - then again, and again..
You wonder why people download across illegal networks..
Tracks are already too expensive - as suggested, you would be giving the artist DOUBLE what he would get it you put 50 cents in his pocket; his profit margin is being eroded by the men in suits, and doesn't it show: most of the music being pumped out sounds like its made by them. Crap music.
In Europe, the distributors try and control the market (I recently saw albums being charged at DOUBLE the US price). The smaller stores can't compete, and the bigger stores will monopolise retail prices. Even with the internet, the market for music is still a rip as the distributors try and control as much of the market as they can. Sony, BMG..they are all as bad as each other.
Greedy leeches.
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| IMG (Inactive) 22 September 2005 17:55 |
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Greedy fucking BASTARDS. Being a musician myself for the last 30 years, I would never, EVER sign a record deal with ANY of them. I would rather have a FTP download setup on my own server in a shareware type of scheme instead. That way, those who like the music can pay for it; those who dislike it will delete it anyway.
And what the hell is wrong with 192 to 384 Kbps MP3 files anyway? Nothing, except that the quality is so good it precludes the need to buy a CD.
I never use iTunes, it sucks in many, many ways, but I do applaude Steve "blow" Jobs for standing up to the enemy.
Screw the RIAA, MPAA, et al. They can all kiss my ass. I have stopped buying CD's and DVD's unless they are local bands who receive 100% of the proceeds.
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| neilchile (Newbie) 22 September 2005 18:21 |
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Hey....
There a number of apps which strip DRM... What's the big deal???
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| neo1000 (Junior Member) 22 September 2005 18:55 |
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after seeing cribs on mtv i`m not sure the artist are being abused by the record companies.
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| Londor (Inactive) 23 September 2005 8:38 |
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"There's no content in the world that has doesn't have some price flexibility," said Warner Music Group Corp. chief executive Edgar Bronfman at the Goldman Sachs Communacopia investor conference here. "Not all songs are created equal. Not all albums are created equal.
"That's not to say we want to raise prices across the board or that we don't believe in a 99-cent price point for most music," he said. " But there are some songs for which consumers would be willing to pay more. And some we'd be willing to sell for less."
Source Reuters UK ( http://today.reuters.co.uk/news/newsArticle.aspx?type=entertainmentNews&storyID=2005-09-23T103529Z_01_FOR323339_RTRUKOC_0_UK-APPLE.xml)
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| Wild9 (Junior Member) 23 September 2005 10:48 |
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Yeah, just like those artists working at the bottom of the corporate ladder - why should they be allowed to earn a decent crust..
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| wheelman7 (Junior Member) 23 September 2005 22:38 |
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Just read the news and man I new the record industry was greedy, but their really pushing it too far here. SEROUSLY do they want people to start download illigaly again, cuz if so their on the right track. LOL
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| freshguy (Member) 24 September 2005 1:05 |
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By TheAntiMe edited Sep 24, 2005 - 3:55 AM
I don't see why all you non-wealthy people can't understand how these things work. When you contribute garbage truckloads of money to the campaign funds of a strategic number of elected officials, then you too will be able to have the legislative and judicial systems biased in such a way as to make sure that you will attain even greater wealth. Until then, I suggest that you should go listen to your FM radio stations. At least that won't cost you anything...for now.
AKA TheAntiMe
This message has been edited since posting. Last time this message was edited on 24 September 2005 1:19
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| nonoitall (Member) 24 September 2005 1:45 |
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Yes, let us non-wealthy people eat cake!
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| duckNrun (Member) 24 September 2005 7:21 |
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cake???? oooh where???? I'm use to us non-wealthy people being told to eat sh!t... so cake's a treat!
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| JEDCO (Newbie) 24 September 2005 8:13 |
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I don't download songs or movies, but I have begun to be selective in which music CD's and DVD movies that I
purchase or rent.
There are untold numbers of indivduals who feel the same as I do, because of talk everywhere I go.
It is political with us, it's the statements they have a right to make, but we also have a right to refuse to
consume the products they are trying to sell.
I beleive this is the largest reason they have been hurt finanically, not piracy. They are in denial, but I don't CARE. Someday they might wakeup and SHUTUP.
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| cappyx (Inactive) 24 September 2005 11:44 |
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Simple solution: Make the I-pod MP3 compatible and able to direct interface with pc. With that option if the consumer feels the price to high well then simply drop an mp3. This just goes to show you when poeple decide to not pirate the music the record companies become even greedier. Personaly I simply prefer to buy the cd at a used discount center and since i legaly own the music i simply drop it into a mp3 player. This has actualy been the most economical solution as i have purchased used cds for as little as 75 cents. do the math 75cents for 15 songs and you own them! This is why i will never own an ipod or any proprietary device as such.
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| cappyx (Inactive) 24 September 2005 11:45 |
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Simple solution: Make the I-pod MP3 compatible and able to direct interface with pc. With that option if the consumer feels the price to high well then simply drop an mp3. This just goes to show you when poeple decide to not pirate the music the record companies become even greedier. Personaly I simply prefer to buy the cd at a used discount center and since i legaly own the music i simply drop it into a mp3 player. This has actualy been the most economical solution as i have purchased used cds for as little as 75 cents. do the math 75cents for 15 songs and you own them! This is why i will never own an ipod or any proprietary device as such.
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| IMG (Inactive) 24 September 2005 16:15 |
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The iPod IS MP3 compatible, but it really does SUCK compared to the awesome iRiver. The iRiver blows away the iPod in every possible way, ESPECIALLY customer service!
With all of the inherent problems that the Apple iPod has had (heat stress, bad hard drives, no customer service, shitty download service wit iTunes, etc.), I take it as a personal affront and refuse to deal with them or thr Real folks either (can you scream SPYWARE at the top of your lungs?).
When will all of these freaking IDIOTS get it? We want high quality tunes, NO SPYWARE, easy downloads, LOW COST and ZERO BULLSHIT! That's it, nothing more to be said about the whole mess. I think we should all mobilize, organize and ostrasize the jerks in the RIAA by suing the living crap out of them from fraud and abuse.
THEN they could whine about how tough life is for them after a group settlement measured in the billions. We will only allow the lawyers 20% of the proceedings instead of the usual 90% they got from big tobacco, asbestos, etc.
How about THEM "Apples"? (Pun intended).
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| IMG (Inactive) 24 September 2005 16:17 |
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The iPod IS MP3 compatible, but it really does SUCK compared to the awesome iRiver. The iRiver blows away the iPod in every possible way, ESPECIALLY customer service!
With all of the inherent problems that the Apple iPod has had (heat stress, bad hard drives, no customer service, shitty download service with iTunes, etc.), I take it as a personal affront and refuse to deal with them or thr Real folks either (can you scream SPYWARE at the top of your lungs?).
When will all of these freaking IDIOTS get it? We want high quality tunes, NO SPYWARE, easy downloads, LOW COST and ZERO BULLSHIT! That's it, nothing more to be said about the whole mess. I think we should all mobilize, organize and ostrasize the jerks in the RIAA by suing the living crap out of them for fraud and abuse.
THEN they could whine about how tough life is for them after a group settlement measured in the billions. We will only allow the lawyers 20% of the proceedings instead of the usual 90% they got from big tobacco, asbestos, etc.
How about THEM "Apples"? (Pun intended).
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| badaboy (Newbie) 27 September 2005 19:30 |
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,,,,,,,,,,IT WONT HAPPEN ..HUMAN NATURE ..NOT TILL THE BUNCH OF LAMBS ,,STOP FOLLOWING THE RECORS ADVERTIZING BIG BUDGET PUBLICITY CAMPAINGS AND ARTISTS START PRODUCING THEMSELVES AND JOIN IN A INTERNATIONAL PROTEST GROUP TO HAVE THEM ARRESTED AND TAKEN TO COURT FOR COLLECTING MONEY ON ARTISTS WORKS WHO DIED IN POVERTY AND LEFT THEIR FAMILY STARVING,,,WHO COULD HAVE USED SOME MONEY...HOW ABOUT THOSE OL'DAYS REMINISCENCE CD'S THEY PUT OUT ON THE MARKET AND COLLECT IT ALL,,,,YEARS AFTER THE DECEASED HAS LEFT THE SCENE,,,,MAYBE THEY USED TO HAVE A CONTRACT,,,,LAW SAYS ALL CONTRACTS END WHEN ONE PARTY DIES,,,,BUT FAMILIES HAVE A RIGHT TO HIS WORKS,,,NOT THE RIAA OR THE FORMER ,,,(MAYBE SOLD 3 TIMES SINCE) RECORD CO.BOUGHT BY A GIANT AND KEPT ON GOING BY SCARE TACTICS,,,"WELL SUE YOUR KIDS AND GRANDMA FOR A CENTURY..ETC..."i was brought up thinking that music was made by artists for the hearing pleasure of their public...i must have been wrong...It was made by artists ,who live poorly the minute they cannot sing anymore unless they produce themselves ,,,to make sure the music companies empire RIAA gets rich enough to be able ,,to sue everyone who thinks of a song note without paying them off...in other countries they call those guys "mafia" and usually the countries have the proper laws to get them off peoples back,,so the population can listen freely to what the artist wanted them to hear..and become popular...and then ..maybe a little rich..with good living aims,,,,i wrote ..in other countries...but there is one in particular in wich i think that the mafia is so rich,,,they even got some laws promulgated with artists profit money's redirected in their cash boxes..used tO buy off the most corrupted lawyers in the country and abroad..to push some doubtfull laws ,,,,,NO UNLESS THE LAMBS STOP FOLLOWING,,,AND JOIN TOGETHER....PAY OFF YOU STUPID BYING PUBLIC TO FEED THEM THE NECESSARY MONEY,,, THEY USE TO SUE YOU....HOW ABOUT A MUNDIAL ASSOCIATION.....(will never happen,,they count on that) they will sue the first guy to go on and form such association...maybe they'll call hhin a nazi...?..you think...what are they with their tactics
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| amaran (Newbie) 16 March 2006 18:20 |
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"steve", i had much respect for him until sometime ago. But now i feel he is just a greedy guy with a all too greedy company. I have a very close friend of mine who was also inspired by jobs and became - a apple reseller, iFarm - in India. He brought in a 5 million USD deal to the table with just iPods. Mind you, this is the first of its kind in Apple India's history, but Apple shortchanged them and gave them 2250 USD as margins. They also made sure that all dirty works are done over the phone, so that they have no record of anything at all.... this guy worked on the case for over 5 months and what he gets is peanuts... may be less, from what I have heard he is now moving off to other vendors who are more ethical and more professional in their business practices.
Talk about being greedy. They walked off with all the credit, and the money leaving this guy penniless. And steve goes about to colleges like stansford and gives inspiring speeches about entrepreneurship.. shame on you steve... "practice what you preech", your company does not follow your policy??? then why do you say things that are not followed by your own company?
This is no isolated case, there are other resellers who are unhappy about apple getting into their business by undercutting them... Steve, you can afford to live a good life with a 1$USD salary while you are worth 4.4Billion USD, and have stock options and things like that. But ordinary people require money for their everyday expenses. and you have no right to call the music companies as "greedy..." nor do you have the right to talk about entrepreneurship, until such day my friend receives the credit for his work, if not the money.
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