AfterDawn: Tech news

Steve Jobs blasts greedy record labels

Written by James Delahunty (Google+) @ 20 Sep 2005 20:23 User comments (41)

Steve Jobs blasts greedy record labels 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

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41 user comments

120.9.2005 21:09
diabolos
Inactive

Wow, even successful legal services aren't immune to the entertainment industies greed. This causes me to wonder if P2P will ever get a chance. It seems no buisness model, even one where the entertainment industy makes 70% profit, is good enough. They want it all! I commend Steve for standing up for what is right even though apple is getting screw. Thats not saying that Apple isn't making money (they have 80% of the market). Its just that they could be making alot more by making use pay more for less.

220.9.2005 21:26

There is no end to the recording industry's greed. Like this guy said, the recording industry makes just as much money off the music available at iTunes as they do off CDs, plus they don't have to pay for the media the music goes on. I'm glad more and more public figures are bashing the recording industry. Even if they don't put an end to their greed, at least more people are learning about the corruption and this will undoubtedly reduce the recording industry's support among common people.

320.9.2005 23:02

another reason i love my mac computer!!! i would've done this in all caps.. but didnt want to go off that strong. if steve jobs is standing up to these corporate a@@h@@@@, then apple must me commended.

420.9.2005 23:51

is this the same Steve Jobs who didn´t license his DRM or allow Real to sell DRM music for iPods? maybe I mix him up with the Steve Jobs who doesn´t want Linux-people to buy music from iTunes because they don´t insert DRM to it after downloading it legally.

521.9.2005 0:32

Greedy, Greedy, Greedy RECORD LABELS.

621.9.2005 0:40

I just saw a programme about Apples utter ignorance and disregard for UK customer's who have defective ipod batteries, unlike some ppl in the states that are bringing them to court over such an issue. Sorry Steve, I for one, abhor your itunes service and it's crippled lossy (Lousy?)format.

721.9.2005 2:51
Rosco404
Inactive

Hmmm... Things should get cheaper once their is more demand for that product or service...

821.9.2005 5:18

This is crazy. They want more money than 99 cents for a song? What are they trying to raise the price to? $5.00 a song? Tsk Tsk

921.9.2005 8:06
SkyDomain
Inactive

Use http://allofmp3.com/ people! That's fair prices & it's legal.

1021.9.2005 8:21

Steve Jobs should tell them to take their artest music and drop them ...kick them to the curb and once he dose that to one or two lables there will be less money in their accounts now they cant scream but they'll come a begg'in to be put on the list to download and make money... if Apple music isnt the largest distrubution point who is dropping them and not paying the lable will ultamitly mean they wont have that revenue for paying more lawyers ... or it will force them in to more lawsuites ...... "being greedy begots nothing" as my moma always said....

1121.9.2005 10:29

I just checked the apple website and there is no statement about this artical on it / odd you would think they (apple) would post something to its loyal fans of the itunes but no if you havent heard about it then maybe you'll sign up and download a song or two and then get the bill, but seriousely if he (Jobs) is doing anything shouldnt he let the world know about this using his own website.... smells funky......

1221.9.2005 12:03

SkyDomain re: allofmp3.com Good tip. allofmp3.com is legal now (as far as the Russian gvmnt is concerned anyway), but that may be changing. Not sure how soon. If folks is gonna buy content from them, don't procrastinate. Just an FYI. http://p2pnet.net/story/6220

1321.9.2005 12:17

I won't disagree for a nanosecond that big music are greedy SOBs. What they are asking iTunes for is a tiered pricing structure with an increase for new releases and a DECREASE for back catalog stuff. I won't buy DRM infected crap from iTunes anyway, but for some who do this might not be all bad, as long as they are not among the mouth breathers who are convinced that if it's not new it's not worth listening to. Just the kind of shmucks the music biz loves. IMHO it's not like Steve is mister generous either.

1421.9.2005 12:26
MrToast
Inactive

Hey, the business of business is MONEY! I dont like big business just like the rest of you but they only charge the prices they do because WE keep paying them! Can you imagine what would happen if everyone in the united states didnt buy ANY music next week and threatened to do so again until prices came down!! These guys get away with what they do because we let it happen. If they raise the price of online music they will force people to download from other sources. I have bought from Itunes a great deal but much of that music is from xxxxxbxixtxtxoxrxrxexnxtxxxxx and was CRAP i would not buy anyway. We dont need to complain about big business we need to have a revolution to let them know WE want the price WE want to pay. Hell, in the end it's the artists themselves that get screwed... not us... and that is my two cents

1521.9.2005 12:33

I'm glad that Steve stood up to the record labels. Of course, if record labels pull their music from the site, then iTunes will loose out too. As a person who owns an online store that offers minor digital downloads (mp3 and full wav format, no DRM or protection, www.monstertunes.net) I can understand why they MIGHT want to raise prices. Lets break it down. 1 song. $.99. Credit Fees for MOST online vendors are $.25 + 3%. For 1 Song this breaks down to $.71 per song. Give even half (or more) to the labels / artist and profit is about $.35. Thats not including any other costs, like advertising, IT infrustructure, other banking charges, tech staffing, etc etc etc. When it comes down to it, Apple has a good monopoly, but its not unbreakable. It could collasp with even 1 to 2 days of full down time.

1621.9.2005 18:49

To hell with them,99 cents seem too expensive to me already.

1721.9.2005 20:39

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.

1822.9.2005 5:33

'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!!!

1922.9.2005 8:07

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!!

2022.9.2005 10:58

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.

2122.9.2005 13:04

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.

2222.9.2005 14:33
duckNrun
Inactive

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)

2322.9.2005 16:18

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.

2422.9.2005 16:36

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?

2522.9.2005 17:08

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.

2622.9.2005 17:55
IMG
Inactive

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.

2722.9.2005 18:21

Hey.... There a number of apps which strip DRM... What's the big deal???

2822.9.2005 18:55

after seeing cribs on mtv i`m not sure the artist are being abused by the record companies.

2923.9.2005 8:38
Londor
Inactive

"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)

3023.9.2005 10:48

Yeah, just like those artists working at the bottom of the corporate ladder - why should they be allowed to earn a decent crust..

3123.9.2005 22:38

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

3224.9.2005 1:05

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.

This message has been edited since its posting. Latest edit was made on 24 Sep 2005 @ 1:19

3324.9.2005 1:45

Yes, let us non-wealthy people eat cake!

3424.9.2005 7:21
duckNrun
Inactive

cake???? oooh where???? I'm use to us non-wealthy people being told to eat sh!t... so cake's a treat!

3524.9.2005 8:13

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.

3624.9.2005 11:44
cappyx
Inactive

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.

3724.9.2005 11:45
cappyx
Inactive

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.

3824.9.2005 16:15
IMG
Inactive

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).

3924.9.2005 16:17
IMG
Inactive

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).

4027.9.2005 19:30

,,,,,,,,,,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

4116.3.2006 18:20

"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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