Ramblings of Silver Blue

28 Feb

Just when you thought they got it.

CNN Reports.

Music download prices rising?
Music industry execs say prices, set low to stimulate demand, need to move higher: report.
February 28, 2005: 6:51 AM EST

NEW YORK (CNN/Money) – Just as legal music downloading is taking off in earnest, the major record labels are in talks to raise the price they charge online retailers for song downloads, a newspaper reported Monday.

The Financial Times, quoting unnamed music executives, said wholesale music prices, thought to be around 65 cents a song, were originally set artificially low in a bid to stimulate demand. The executives noted the success of Apple’s hugely popular iPod digital music players, the report said.

The executives noted that prices to download mobile phone ring tones are roughly 10 to 15 percent higher than song downloads, according to the newspaper.

The move by the music labels was said to anger Apple’s chief executive Steve Jobs. Apple, which charges 99 cents a song to download music from its iTunes online store, accounts for about 65 percent of all legal downloads, according to the paper.

Critics said that any move to raise prices could merely drive people back to illegal file sharing, which still far outstrips the number of legal music downloads, according to the report.

Sure. Get greedy. Raise prices. I’ve seen the price for vault albums raise from $6.92 to $9.99, putting them in line with what I can go to a bricks and mortar store and actually have something I can hold in my hands for my $9.99.

The music industry just doesn’t get it, do they? I’ve spent over $200 getting, song by song, only the tracks I want. Raise the price to $1.29, and guess what? Unless you’re going to open the floodgates of music in Europe to my downloading potential, there goes another formerly satisfied customer. There’s a reason ebay does a business in the CD market — there’s a demand, and it’s filled at a price the buyer is comfortable with.

Digital downloads incur storage and bandwidth costs, but where’s the savings of not having to press a CD, or booklet, being passed to? From the sounds of what the industry wants, definately not to the end consumer.

If only I could get to a place where I didn’t want any more music, then perhaps this wouldn’t be important to me.

One Response to “Just when you thought they got it.”

  1. 1
    Silver Blue Says:

    I don’t think they’ll ever learn. 🙁

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