How much is an iTunes download worth?
How much is an iTunes download worth? About 70 cents, if conventional wisdom is correct. That's the commonly quoted number for the iTunes money that gets passed back to the record labels. And according to the New York Times today, the record labels are angling for more. They argue that broadband music sales through the mobile iTunes store somehow should bring them a greater profit than sales through the standard iTS, pointing to industry practice for ringtone and ringback sales.
I don't quite understand their reasoning. I think most phone-based ringtone sales are outrageously overpriced. Increased sales volumes will benefit the labels even at the current wholesale prices. Ah well, another example of Underwear Gnome economics in action.
| Apple should pay more per track | |
|---|---|
| If Apple pays less, we pay less | |
| It doesn't really matter with the fixed price per track model | |
| Underwear Gnomes! |
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How much is an iTunes download worth? About 70 cents, if conventional wisdom is correct. That's the commonly quoted number for the iTunes...
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I will never buy a ringtone. Mine are either made from royalty-free sources or my own original recordings, and sound great to me. And that's all you need - something YOU like, which does the job. No legal need to pay anyone any money for that.
May 26 2008 at 6:52 PM Report abuse Permalink rate up rate down ReplyI'm willing to pay up to $1.29 per track, but only for DRM-free lossless audio.
May 20 2008 at 7:13 AM Report abuse Permalink rate up rate down ReplyThe music industry just fell another rung lower on the circles of hell and are potentially about to pass Verizon at this point. And don't even get me started when you put the music industry and the cell carriers TOGETHER on an issue, such as ringtone fees. Seriously, people who come up with these pricing plans should be shot. There's nothing worth salvaging from a mind that thinks people should have to pay $2.50 to listen to 30 seconds of a song they already own.
May 19 2008 at 10:53 PM Report abuse Permalink rate up rate down ReplyHow can you not understand their reasoning? If it hasn't bean made painfully apparent, record labels care about money.
"We're only getting this percent of sales price through the first channel.
We're getting away with a much higher sales price through a second channel, so that means that customers will pay for higher prices across the board.
Raise all prices!"
I guess record labels care about money, but if they do, they should first of all care about beating file sharing, not pissing off customers for a short term profit. There is only one way to beat file sharing, and by raising prices for single tracks like this, they're doing the exact opposite: They're inviting it, and I'm pretty sure that SoulSeek client for the iPhone will become mighty popular if this is the way they want it.
People are already used to downloading as much music as they want, and it's not uncommon to hear that people have 200GBs of music on their harddrives. That equals about 90000 songs, or $90,000 if it was paid for. This is what people are used to, but nobody can afford to pay for what they're used to anymore. If they want to beat file sharing, they will have to move over to subscription based downloading, where you pay a monthly subscription fee, and can download all the music you want in high quality, DRM free and from a complete catalogue - on your phone and on your computer - hazzle free. You should also be able to order these albums on original CD media or equivalent for a small extra fee. That may not be how you beat file sharing, but it is the only way to compete with it. They have to give us what we're used to without any limits.
If they're reading this, I have a tip for a new slogan: The record industry - Digging our own grave with short term profit because we're too stupid to stay in business.
They're getting a way better deal than in stores. And if I've bought the right to play it, I should be able to do so on my phone, it's not like I'm broadcasting. And that right isn't worth any more if all that changes if the networking (3G).
May 19 2008 at 5:09 PM Report abuse Permalink rate up rate down ReplyThis is the reason Reznor is god. He's realized what the consumers all did years ago and is putting all of our thoughts into action. The RIAA should be glad it is getting what it is when the economy is so bad. They're idiots.
May 19 2008 at 4:47 PM Report abuse Permalink rate up rate down ReplyThis web site is getting fun.
Gnomes...
If they're gonna cost more it should be because they're using up additional AT&T bandwith...not because somehow the music is worth more because it's being downloaded via cellphone. You'd think they'd want as many venues for people to download their product... but instead they want to charge a premium for something that will, for the most part, be an impulse buy... they should be happy for any impulsing buying you can get!
May 19 2008 at 4:33 PM Report abuse Permalink rate up rate down ReplyCell phone carrier greed will try to push iPhone purchase tracks to at least $1.50 is my guess.
May 19 2008 at 4:31 PM Report abuse Permalink rate up rate down Reply"They argue that broadband music sales through the mobile iTunes store somehow should bring them a greater profit than sales through the standard iTS, pointing to industry practice for ringtone and ringback sales." Well then good for Apple for telling them no. So IF I use my iPhone to buy an album using the built-in app, I should pay a premium? riiight.
So Amazon should charge more for me buying through AmazonMobile??
Shame on us as consumers for allowing this shite to get this far. A song is a song, if it's worth $0.99 from my home computer, then it's worth $0.99 from my iPhone or whatever....
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