iTunes price increases mean slower sales for music labels

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  • Reply 21 of 139
    Traditional manufacturers and publishers just don't get the Internet and they don't understand who their customers really are. They think their customers are those traditional brick and mortar retail store owners. These are folks who constantly complain that the Internet is ruining their businesses with ruinous discounting. They put pressure on manufacturer's and publishers to get prices up so that there will be an, ahem, 'level playing field.'



    That's nonsense of course. The real customers are the ultimate consumers who are proving that price is an important variable. Both the music companies and the book publishers would be trying to lower prices, rather than raise prices, if they had a clue.
  • Reply 22 of 139
    irelandireland Posts: 17,798member
    Quote:
    Originally Posted by johnmcboston View Post


    And I've yet to see ANY song at 69 cents. Even stuff from the 70's or 60's is full price. And god forbid some 70's song was just in a movie - price magically jumps to 1.29.



    Very fair point. Variable pricing really means a lot of stuff now costs $1.29.
  • Reply 23 of 139
    Quote:
    Originally Posted by reliason View Post


    ...I think that Amazons price was bound to fail, especially when they tied thier price to exclusivity. Why should a publisher cut a better deal with an electronic vender, undercutting it's own physical sales? The Kindle and all book readers are nice, but they will not change how literature is consumed (ala iTunes vs. the CD).





    Amazon wanted to sour the adoption of the Kindle, the best way to achieve this was by lower e-book prices than the paper book. Just like the 99¢ per song did for the iPod.



    Hopefully what will spur adoption of the iPad is the ability to rent books, with the option to buy, opening up a whole new market which the Kindle can't compete just yet.





    Quote:

    No, in the future, Amazon will sell eBooks that are iBook compatible, because they don't have a compelling device.



    I don't think so, Apple won't allow their DRM to work with other hardware makers like the Kindle, I can almost bet on it. The DRM will be tied to the A4 processor somehow, and since the Kindle can't get access to the A4...
  • Reply 24 of 139
    "During the earnings call, Bronfman sounded a bit wistful as he noted the book industry’s apparent success, with the help of Apple, at raising prices above the $9.99 floor Amazon (AMZN) had set," Kafka wrote.



    Bronfman reportedly said, "It’s interesting that the book publishing industry, on the iPad, has much more flexibility than the music industry had."



    Ironic statement, given that the music industry used DRM free downloads on Amazon as a tool to get Apple to raise iTunes prices.
  • Reply 25 of 139
    irelandireland Posts: 17,798member
    Quote:
    Originally Posted by Gazoobee View Post


    This is absolute BS.



    These "publishers" give the author a few pennies on each book even though the production costs are ridiculously low. Even a fifty percent increase in the selling price would just up each of the parties profits by the same amount. So instead of making a dollar on a $9.99 eBook the authors will make $1.50 and the publishers (who contribute very little to the value of the product at all), will still make the lions share of the profit.



    Maybe Apple are betting some writers might end up self publishing through iTunes? And even though it looks like they are helping the publishers right now things could change in the future?
  • Reply 26 of 139
    if you want to support the record companies ---> buy the music



    if you want to support the artist --------------> go to the concerts (and buy t-shirts too)
  • Reply 27 of 139
    irelandireland Posts: 17,798member
    Quote:
    Originally Posted by swtchdtomak View Post


    "During the earnings call, Bronfman sounded a bit wistful as he noted the book industry?s apparent success, with the help of Apple, at raising prices above the $9.99 floor Amazon (AMZN) had set," Kafka wrote.



    Bronfman reportedly said, "It?s interesting that the book publishing industry, on the iPad, has much more flexibility than the music industry had."



    Ironic statement, given that the music industry used DRM free downloads on Amazon as a tool to get Apple to raise iTunes prices.



    He's talking pricing. From the start iTunes was .99c - that's all he's stabbing at. Don't get me wrong, I think pricing digital books like this is stupid in many ways.
  • Reply 28 of 139
    jeffdmjeffdm Posts: 12,953member
    Quote:
    Originally Posted by johnmcboston View Post


    And I've yet to see ANY song at 69 cents. Even stuff from the 70's or 60's is full price. And god forbid some 70's song was just in a movie - price magically jumps to 1.29....



    There are some, but they're just token tracks. Sadly, it was just a ploy try getting the public on the industry's side and not Apple's.



    I don't have a problem with $1.29 if I wanted the song, if it's worth buying then it's probably going to get far better play value than most other media, but it really plays poorly with pricing psychology.



    Quote:
    Originally Posted by stompy View Post


    Sure Edgar, the music industry and publishing industry are identical. Rotten Apple. If only you had been in charge, you'd still be on top of the world.



    The music industry is far more price-rigid than publishing and the movie industry. It's easy to find $6 new DVDs of decent back catalog movies, but almost impossible time finding a music CD in that range at retail, unless it's one of those low-rent compilation CDs, and not original albums.



    Quote:
    Originally Posted by m2002brian View Post


    if you want to support the record companies ---> buy the music



    if you want to support the artist --------------> go to the concerts (and buy t-shirts too)



    That's a different ball game. The venue takes a pretty big cut of the ticket price.
  • Reply 29 of 139
    finetunesfinetunes Posts: 2,065member
    I like iTunes for buying single songs. If I like most of the songs on an album, I buy the CD and then copy it to my iPod. CD's are like books, after its been out for a while, you can get a great buy or you might be able to find a used copy at an store like Amoeba. I don't buy an album for only one song--I look for another source to get a copy. If I want a book, I wait until the price drops--I like hard cover if I intend to keep it for long time. I can see a place for eBooks and it will suit a certain group fine. So it is not surprising if you raise the price, not all of the people will pay.
  • Reply 30 of 139
    The good news is that I found a whole trove of songs in the iTunes Store that are 69 cents.



    The bad news is they are all by Sasquatch.
  • Reply 31 of 139
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by Gazoobee View Post


    This is absolute BS.



    These "publishers" give the author a few pennies on each book even though the production costs are ridiculously low. Even a fifty percent increase in the selling price would just up each of the parties profits by the same amount. So instead of making a dollar on a $9.99 eBook the authors will make $1.50 and the publishers (who contribute very little to the value of the product at all), will still make the lions share of the profit.



    Publishers will make less money using the 70/30 Apple iBooks way that the $9.99 Amazon way. Publishers are already selling their books to Amazon at $14.99. Amazon is losing $5 for each $9.99 book they sell on the Kindle.

    The publisher goal is not to achieve a short term immediate profit. They want more control over pricing, which can help in the long term. It is not about printing and production cost as well. Most university textbooks cost $100+ and they go through the same production process as a $40 book. One of my professors wrote two books in construction management, which are taught worldwide. He told me he will never write another book again because of how little he gets for it.
  • Reply 32 of 139
    cmf2cmf2 Posts: 1,427member
    How is Warner arguing that the change was a net positive when their growth in revenue slowed? I thought they were in the business of making money, yet they are happy when their statement implies that they could have made more money under the old price model?
  • Reply 33 of 139
    Quote:
    Originally Posted by MacTripper View Post


    I don't think so, Apple won't allow their DRM to work with other hardware makers like the Kindle, I can almost bet on it. The DRM will be tied to the A4 processor somehow, and since the Kindle can't get access to the A4...



    I think I mistyped. What I meant is... that Amazon will make money selling eBooks for the iPad, either through a 'kindle' app on iPad or as DRM free, ePub format files that (hopefully) Apple allows to be read in iBook. Similar to ripping your own CDs to your music library.



    The Kindle, as a product, is most likely headed toward Microsoft Zune status. It will linger, but never be very relavant.
  • Reply 34 of 139
    The economy has been in the tank for over a year and people are increasingly realizing they don't have discretionary money to throw around. Apple's charging an extra twenty-five cents is basically immaterial. Are any OTHER discretionary categories of spending growing? I don't think so.
  • Reply 35 of 139
    This is the single reason why i went down the Napster/Spotify route.



    I've kind of got used to the idea of rental as opposed to ownership, although i still indulge every now and then.



    Still love ya Apple but your just to expensive for me these days.
  • Reply 36 of 139
    kolchakkolchak Posts: 1,398member
    Quote:
    Originally Posted by johnmcboston View Post


    And I've yet to see ANY song at 69 cents. Even stuff from the 70's or 60's is full price. And god forbid some 70's song was just in a movie - price magically jumps to 1.29....



    I've seen one. However, it was an alternate version of a very old, minor pop hit from decades ago, recorded by the same artist, but obviously an early recording that wasn't as polished. I didn't bite.
  • Reply 37 of 139
    Full scale internet riot going on at MacDailyNews...



    http://macdailynews.com/index.php/we...omments/23972/
  • Reply 38 of 139
    newbeenewbee Posts: 2,055member
    Quote:
    Originally Posted by johnmcboston View Post


    And I've yet to see ANY song at 69 cents. Even stuff from the 70's or 60's is full price. And god forbid some 70's song was just in a movie - price magically jumps to 1.29....



    Either you are too lazy to look or too stupid to read. The following are just a few albums with song prices ranging from a high of 0.67 to a low of 0.05 (canadian iTunes store - the us store will probably be cheaper)



    Under the table and Dreaming - Dave Matthews Band - $7.99 - 12 @ $0.67

    The Best of Simon & Garfunkel - Simon & Garfunkel - $9.99 - 20 @ $0.50

    The Carpenters Greatests Hits - \tThe Carpenters - $5.99 - 16 @ $0.37\t

    The Complete Billie Holiday - \tBillie Holiday - $9.99 - 35 @ $0.29

    Elvis 75 - Elvis Presley - \t$7.99 - 25@$0.32\t\t

    Emmylou Harris Anthology: The Warner / Reprise Years - $9.99 - \t44@\t$0.23\t

    In My Lifetime - \tNeil Diamond - \t$24.99 -\t71@\t$0.35\t

    The Most Essential Classical Music In Movies - \tVarious Artists - \t$5.99 - \t49@\t$0.12\t

    Respect - The Very Best of Aretha Franklin - \tAretha Franklin - $9.99 - 43@\t$0.23\t

    50s Rock N' Roll Valentines - \tVarious Artists - \t$19.99 - \t129@$0.15

    Ultimate Alabama 20 # 1 Hits - \tAlabama - $9.99 -20@$0.50\t\t

    Essential Jazz Masters - \tVarious Artists - $9.99 - 186@\t$0.05\t



    The last one (Jazz Masters is downloading as we speak .. I found it while researching for this post ... you could look up "researching, it's in the dictionary)\t.... contains artists like Duke Ellington, Miles Davis etc.\t\t



    Your posts would be more meaningful if you would "learn" before you speak.
  • Reply 39 of 139
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by newbee View Post


    Either you are too lazy to look or too stupid to read. The following are just a few albums with song prices ranging from a high of 0.67 to a low of 0.05 (canadian iTunes store - the us store will probably be cheaper)

    [...]

    The last one (Jazz Masters is downloading as we speak .. I found it while researching for this post ... you could look up "researching, it's in the dictionary)\t.... contains artists like Duke Ellington, Miles Davis etc.\t\t



    Your posts would be more meaningful if you would "learn" before you speak.



    Your examples are albums, not individual songs as the article states. I randomly checked 3 of the albums you posted and none offer the 69¢ pricing. Some songs even had the $1.29 pricing.
  • Reply 40 of 139
    cmf2cmf2 Posts: 1,427member
    Quote:
    Originally Posted by newbee View Post


    Either you are too lazy to look or too stupid to read. The following are just a few albums with song prices ranging from a high of 0.67 to a low of 0.05 (canadian iTunes store - the us store will probably be cheaper)



    Under the table and Dreaming - Dave Matthews Band - $7.99 - 12 @ $0.67

    The Best of Simon & Garfunkel - Simon & Garfunkel - $9.99 - 20 @ $0.50

    The Carpenters Greatests Hits - \tThe Carpenters - $5.99 - 16 @ $0.37\t

    The Complete Billie Holiday - \tBillie Holiday - $9.99 - 35 @ $0.29

    Elvis 75 - Elvis Presley - \t$7.99 - 25@$0.32\t\t

    Emmylou Harris Anthology: The Warner / Reprise Years - $9.99 - \t44@\t$0.23\t

    In My Lifetime - \tNeil Diamond - \t$24.99 -\t71@\t$0.35\t

    The Most Essential Classical Music In Movies - \tVarious Artists - \t$5.99 - \t49@\t$0.12\t

    Respect - The Very Best of Aretha Franklin - \tAretha Franklin - $9.99 - 43@\t$0.23\t

    50s Rock N' Roll Valentines - \tVarious Artists - \t$19.99 - \t129@$0.15

    Ultimate Alabama 20 # 1 Hits - \tAlabama - $9.99 -20@$0.50\t\t

    Essential Jazz Masters - \tVarious Artists - $9.99 - 186@\t$0.05\t



    The last one (Jazz Masters is downloading as we speak .. I found it while researching for this post ... you could look up "researching, it's in the dictionary)\t.... contains artists like Duke Ellington, Miles Davis etc.\t\t



    Your posts would be more meaningful if you would "learn" before you speak.



    Those are album prices. How much are those songs if you buy them individually? I won't say that I haven't seen any songs below $0.99 (I think I may have seen a couple), but I definitely have not seen many when compared to how many are $1.29.
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