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Price per song to increase?


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Price per song to increase?
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CitizenTony
Senior Member
 
Join Date: Dec 2004
Location: Dallas
 
2005-03-01, 01:28

CNN/Money - Music Execs want price per download increased.

Though the sources seem a bit sketchy, this article really piques my attention. If what is said turns out to be true, and the music executives get their way, it could really hurt the iTMS, among others. More so, I don't see how raising the price would be beneficial in the long haul. People are not going to be willing to pay more than they have been.

Quote:
Aram Sinnreich, music industry analyst for the University of Southern California, said increasing prices would be a "major mistake" and that any price over a dollar would "nip the emerging consumer trend in the bud." Sinnreich said the story was probably leaked as a "weather balloon" to test the market, but it could have legal repercussions for the industry if it ever comes to fruition.

"The major labels should take care so as not to appear that they're discussing the rise in wholesale prices in any collusive way," he said, noting that illegal collusion could bring down them the wrath of the Justice Department and other regulators.
If this turns out to be the case, I can only hope someone calls them on it.
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bassplayinMacFiend
Banging the Bottom End
 
Join Date: Jun 2004
 
2005-03-01, 08:03

Is this the same Justice Department that found them guilty of price fixing to the tune of half a trillion dollars then did nothing to punish them? Yea, I thought it was. You won't see the US Justice Dept. bringing any meaningful penalties down on big corporations here in the US since they basically own government at the moment.

Sad but true.
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SKMDC
superkaratemonkeydeathcar
 
Join Date: May 2004
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2005-03-01, 09:21

you didn't get your check for 15$? I did.
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Ryan
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Join Date: May 2004
Location: Promise Land of Trustafarians
 
2005-03-01, 21:28

As I recall, Jobs said that Apple had contracts at 99¢.

Of course, at the end of the contracts anything could happen.
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The Return of the 'nut
BANNED
I am worthless beyond hope.
 
Join Date: Dec 2004
Location: Berkeley
 
2005-03-01, 23:09

they have yearly contracts

thats why the DMR changed last year
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torifile
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2005-03-01, 23:12

The question now is: will Apple have the leverage to get them to concede to better terms for consumers? With over 10 million (probably getting to 15 million) iPods out there and such a huge marketshare, I'd hope that the record companies would take their concerns seriously. We'll see...
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BlueRabbit
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Join Date: May 2004
Location: San Francisco, CA
 
2005-03-02, 18:04

I'd say that Apple has the leverage here. Right now, they're the largest online seller of music there is, and without them, I bet a lot more people would be pirating music than are now. A price hike would just push them back to piracy. Fortunately, I doubt Steve will compromise on the price, as that was one of the most important things when the iTMS first came out.
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onlyafterdark
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Join Date: Jul 2004
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2005-03-02, 19:25

Quote:
Originally Posted by BlueRabbit
I'd say that Apple has the leverage here. Right now, they're the largest online seller of music there is, and without them, I bet a lot more people would be pirating music than are now. A price hike would just push them back to piracy. Fortunately, I doubt Steve will compromise on the price, as that was one of the most important things when the iTMS first came out.
You hit the nail on the head. Without iTunes, the music business would still have their collective heads up eachothers' asses.
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baaron
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Join Date: Feb 2005
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2005-03-05, 03:04

Being Canadian, I can't complain if the price does go up.

The songs will still be cheapest here!
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__^^__
New Member
 
Join Date: Mar 2005
 
2005-03-05, 16:04

If the Music Industry wants to increase the price, what's the chances that Apple with eat the increase themselfs?
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bassplayinMacFiend
Banging the Bottom End
 
Join Date: Jun 2004
 
2005-03-07, 15:36

Quote:
Originally Posted by __^^__
If the Music Industry wants to increase the price, what's the chances that Apple with eat the increase themselfs?
Well, if internet guesstimates are correct, Apple nets about a $0.04 per song profit. Not too much room to eat any kind of price increase, not at all.
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__^^__
New Member
 
Join Date: Mar 2005
 
2005-03-08, 15:06

Quote:
Originally Posted by bassplayinMacFiend
Well, if internet guesstimates are correct, Apple nets about a $0.04 per song profit. Not too much room to eat any kind of price increase, not at all.
Who says they have to make a profit on the music? Maybe but keeping the cost of music down they can increase iPod sales...
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bassplayinMacFiend
Banging the Bottom End
 
Join Date: Jun 2004
 
2005-03-08, 15:22

Quote:
Originally Posted by __^^__
Who says they have to make a profit on the music? Maybe but keeping the cost of music down they can increase iPod sales...
When has Apple ever designed loss into the price of a product?

*crickets chirping*

Exactly. If they started losing $0.04 per track times 500,000,000 songs that would equal a 20 million loss. I don't think Apple wants to lose that kind of money. I'm sure if the record cos. had their way Apple would be losing much more than 4 cents a song as well.
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__^^__
New Member
 
Join Date: Mar 2005
 
2005-03-08, 22:51

What's their profit margin on iPods? I don't know but it's got to be well above 4% they are making per track.
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