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Legal download prices to rise?

Written by James Delahunty (Google+) @ 28 Feb 2005 6:44 User comments (12)

Legal download prices to rise? The market for online legal music downloads is strong enough to take a price hike according to major record labels. Several major record labels are apparently in talks with online music stores to get them to increase music download prices, according to the FT. In the United States, online stores typical sell music downloads for about 99c per track. The wholesale cost of these tracks (that the shops pay) is about 65c.
The labels want the wholesale cost of the music to increase. Universal and Sony BMG are not so keen to put prices up and EMI and Time Warner wouldn't comment on the FT story. Some people are concerned that any sort of price hike on legal music downloads may push consumers back to P2P networks where they can find music for free that contains no DRM protection and usually is in the MP3 format.

Also the music industry is getting unhappy with Apple's dominance of the market apparently. Apple currently sells about 65% of all legal music downloads and now with cheaper iPods available, that figure may increase. Apple wouldn't comment on the FT story but apparently Steve Jobs is very unhappy about any talks concerning price hikes.

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12 user comments

128.2.2005 8:10

DUH!!! Labels wanting more money. Who couldn't see this coming. If they didn't have to contend with P2P, the prices would already be high, with DRM to boot.

228.2.2005 8:20

they sell DVDs to the chinese for $3 a pop, but Americans need to pay MORE for music?!?

328.2.2005 8:33

Fuck the recordlabels. FUCK EM!! I aint paying anymore for music.

428.2.2005 8:55

I hope they do put the prices up, then people wont download their legal music no more, and they will end up back to square one. serves them right for being so greedy! They manage to get in the download market, but those greedy executives just dont get it do they?

528.2.2005 9:48

If all of us supply everyone we know with music, then that would take a huge bite out of their profits.

628.2.2005 20:08

just when something starts to work.... dont these freakin idiots understand??? if there's a retail price increase, people will slow down purchasing music this way. it's way to soon from switchin from free to pay for music that most will just go back to gettin their music other ways. OMG these people are so brain dead. they complain everyone's stealin from them. then people start paying for it and now they want to push em alll back to stealing from them again. idiots! People started downloading music because they didnt' want to buy cd's that are too over priced with songs you don't need. if they increase the cost of online music, they better start giving us the dang cd to go with it.

71.3.2005 8:06

Its greed plain and simple, the tracks are over priced as it is and now they want more! geesh! Will these idiots ever learn? Corporate Greed is all it is, they want more and more whether it's raising the price of goods or screwing the employee (longer hours less money, etc...) or both usually. were do they think the money comes from? We only have so much disposable income, don't they get it? Charge too much and we all go back to the P2P model and share what we have and they can keep their over priced garbage!

81.3.2005 8:38

This just shows that they don't have a fucking clue. If they brought down the price more songs would be sold and that would mean more money in there pockets. But as this stands I think that .99 cents is a bit steep, and why buy it when I can download it for free. They just refuse to learn "change with the times or become obsolete”.

Artificial intelligence is no match for natural stupidity.

91.3.2005 9:02

The funny thing is that their argument is always "what about the artist." Yeah, what about it? They need to increase the price of music so that they can buy bigger mansions and buy more cadillacs and bmws? Jimmy Hendrix barely had enough money to produce an album... and now all those suckers playing the guitar, driving the mercedes benz, can't even play a decent solo. If they don't do it for the love of music but for the love of money screw them. What about the rest of us? What about the guy who works 15 hours a day in McDonalds? Is he going to spend $20 on an album where he is only interested in one song?

101.3.2005 9:56

what dumbasss pays 400$ for an mp3 player and then an 100+ filling it with songs......Ipod saw you sucker a mile away.

112.3.2005 7:44

Redant, I agree the prices are way too high for a track especially if there is no expense in distributing the content as in CD's. I just plain refuse to buy CD's or MP3's due to the DRM and their position that I am a pirate (it is their opinion that all consumers are, just look at their actions). Jauzzi, THe artist is already paid in most cases and the money goes to the label. Now we can talk about the BS contracts the artists get forced into but this is OT. THe labels screw the artist and the consumer and they are trying to squeeze even more out of us. I say let them go under we do not need them as muchas they need us. I like sites that share upcoming artists material and give us the chance to buy directly without the RIAA in the mix.

124.3.2005 7:46

If they raise the price per song then that will only continue to fuel illegal downloads of music.


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