Looking Out from the Inside

Thursday, November 17

Newsflash! Fire still hot! Record labels want your money!

Well if you didn't see this coming chances are you're sportin' the white cane. Alain Levy, CEO of EMI music, is pushing Apple to change the pricing scheme on the iTunes Music Store from the current flat 99 cents to a "variable pricing structure." What's this mean? The notion is that the really popular artists and songs should cost more than the everyday meh stuff so instead of having a flat pricing across the board in this new model will have the super popular bits bumped up a bit while the less popular albums and back catalogs would actually be reduced.
Now it's no secret that the record labels are feeling like they're getting ripped off by this pricing scheme. Nevermind the fact that the labels are already getting $.70 out of every dollar purchased, they feel like the market can take more and damn if they aren't going to try to suck it out of us. Steve, on the other hand, already outted the labels last September saying...

The labels make more money from selling tracks on iTunes than when they sell a CD. There are no marketing costs for them... If they want to raise prices they are getting greedy

So where does this put you and I? Well, truth be told if they go through with this idea I'll probably come out ahead. I stopped listening to FM a long time ago because I'm not generally interested in the megahits. This would, however, create a bad prescident. I'm sure once the shoe's in the door they're going to do everything they can to boost the price of as many tracks as much as possible. And if that happens? Well lets just say that I've got Acquisition on my dock for a reason.

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Heading image Courtesy of Apple

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