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Jobs close to winning iTMS pricing war?

The New York Post is reporting that the record companies "might be on the verge" of finally throwing in the towel on the fight for variable pricing in the iTMS. The labels are reportedly pulling out all the stops, with some executives even telling the Post that they are considering allowing their label's deal to simply run out so they could pull their catalog from the store.

With neither side backing down, and the subscription model not even an option in Jobs' eyes, it sounds like things might get interesting soon as every label's contract is due for renewal within the next couple of months. Oddly, the Post forgot to mention that, even with the current iTMS flat-rate $.99/song model, the labels are already raking in far more cash with each song and album sold than with traditional CDs.

While Engadget sounds like they're clamoring for an iTMS subscription model that revokes your entire library the moment you decide to cancel service, I have to say I'm hopeful that Jobs can successfully stick it to the labels and make them deal with a pricing model that actual *gasp* favors consumers. Stay tuned for more iTMS drama as it unfolds.

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The New York Post is reporting that the record companies "might be on the verge" of finally throwing in the towel on the fight...
 

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mike

12. I wouldn't go so far as saying that it *benefits* consumers. The record labels got sued for price fixing and the settlement was to pay off the consumers(I did get my $13 and some change(not even enough to buy 1 cd;)), while not actually fixing the pricing model.

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Of course it does. It's cheaper. You can buy the songs individually or buy the album. By and large, it rewards bands that put out good albums vs. those who only have one or two decent songs.

How do customers lose with this? The record companies want to price differentiate, yes, but it would make the pricing scheme a mess. The 99c for all system is slick.. makes casually buying more attractive than 'thinking about the price'

April 24 2006 at 10:21 PM Report abuse rate up rate down Reply
Clark

The pricing model currently in place is the one that works best. I can see for some music where a subscription model wouldn't bother me too much, if it was cheap enough, as most music released by the labels today isn't worth hanging on to. But it would be too confusing I think. The music I but I want to keep. I don't want to rent the right to listen to music.

April 24 2006 at 7:59 PM Report abuse rate up rate down Reply
alex

I wouldn't go so far as saying that it *benefits* consumers. The record labels got sued for price fixing and the settlement was to pay off the consumers(I did get my $13 and some change(not even enough to buy 1 cd;)), while not actually fixing the pricing model.

This is _sorta_ a step in the right direction, but songs are still $1 at lower quality then what they were before and none of that packaging or warehouses that it actually takes to store and distribute the physical goods. They also impose DRM on you which I also have a distaste for whilie understanding the need. I guess I am bitter because the artists are still usually getting screwed in their deals with the record companies and the rights to their music. It is still executives piling their coins and the people that actually create and consume the music that are getting screwed. Or at least have little to no say with what is going on even when you win court battles.

April 24 2006 at 5:19 PM Report abuse rate up rate down Reply
OlsonBW

"I have to say I'm hopeful that Jobs can successfully stick it to the labels and make them deal with a pricing model that actual *gasp* favors consumers."

How about a model that benfits both. It doesn't need to be biased for either side. The current iTunes seems to meet this.

April 24 2006 at 4:44 PM Report abuse rate up rate down Reply
Shashwat Parhi

As arkowi pointed out, Apple Comp. should just buy out Apple Corps, they'll get access to all of Beatles' tracks. If the mess between Sony and MJ isn't yet over, they could even help Apple Corps retain MJ's share of the tracks he owns. And then they could turn around iTMS as a bona fide label and sign up any artist who wants to. What do you think? Highly improbable, but who knew a puny MP3 player could have changed Apple's fate.

April 24 2006 at 1:14 PM Report abuse rate up rate down Reply
Dude

The labels need to realize that many people simply don't want a subscription service - AT ALL. If they pull their content from iTMS, well I just won't have the ability to buy their content. Since iTMS I haven't purchased a regular CD at all. So its really their choice on whether or not their content is available for me to purchase it or not.

April 24 2006 at 12:56 PM Report abuse rate up rate down Reply
s'fen

I would have no problem paying 2 a song if it went straight to the artist, because they really deserve the money. How can a record company demand (and I'm guessing) more then 50% of the profit from a itms song purchase. There is no distributing cost... no shipping... they are getting the same if not greater profit for less work. We need a little recording finance reform.

April 24 2006 at 12:55 PM Report abuse rate up rate down Reply
kmok1

Japan ITMS has a two-tier price system. We just don't have stats about this ITMS. I do agree that a single-priced system makes thing much simpler.

April 24 2006 at 12:41 PM Report abuse rate up rate down Reply
Bill

Wow...after reading back over my comment, I should really proofread these things before I submit them....


@ andy
True - that might land them back in cour with Apple Corp. Yarg, Apple Corp is so irrelevant these days...they need to give up the ghost on this one. They're clearly impeding upon what could be an ideal situation here....and for what? Because they're worried people will confuse the two Apples? Has Apple Corp done anything worth a s#!t in the past 20 years anyway?

@ Andre
Good call - I did not know that. Now all we need are most people going the Independent route if it gets them a nice deal with the iTMS. :)

April 24 2006 at 12:35 PM Report abuse rate up rate down Reply
Andre Dupont

@ Bill I
Independant artists can allreay submit music to iTMS via the service http://www.tunecore.com

April 24 2006 at 12:24 PM Report abuse rate up rate down Reply
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