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Apple, Digital Music's Savior, Earns Record Industry's Scorn
New York Times ^ | 8/27/05 | JEFF LEEDS

Posted on 08/26/2005 8:49:21 PM PDT by wagglebee

Two and a half years after the music business lined up behind the chief executive of Apple, Steven P. Jobs, and hailed him and his iTunes music service for breathing life into music sales, the industry's allegiance to Mr. Jobs has eroded sharply.

Mr. Jobs is now girding for a showdown with at least two of the four major record companies over the price of songs on the iTunes service.

If he loses, the one-price model that iTunes has adopted - 99 cents to download any song - could be replaced with a more complex structure that prices songs by popularity. A hot new single, for example, could sell for $1.49, while a golden oldie could go for substantially less than 99 cents.

Music executives who support Mr. Jobs say the higher prices could backfire, sending iTunes' customers in search of songs on free, unauthorized file-swapping networks.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: apple; digitalmusic; ipod; musicindustry
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Apple has almost single-handedly restored profitability to the music industry, they would be crazy to back out of the deal now.
1 posted on 08/26/2005 8:49:22 PM PDT by wagglebee
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To: martin_fierro

iPod ping.


2 posted on 08/26/2005 8:50:36 PM PDT by wagglebee ("We are ready for the greatest achievements in the history of freedom." -- President Bush, 1/20/05)
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To: wagglebee
RIAA is worried about its profits. Protecting artists' rights has nothing to do with it.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
3 posted on 08/26/2005 8:52:19 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: wagglebee

The recording industry is going to destroy iTunes. Watch for iPods to start being siezed for "evidence".


4 posted on 08/26/2005 8:52:37 PM PDT by Doohickey (If you choose not to decide, you still have made a choice...I will choose freewill.)
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To: wagglebee

Yes, but these are the same idiots that supported Michael Moore and Algore. They *are* fools.


5 posted on 08/26/2005 8:54:20 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Doohickey

I loaded a couple hundred CDs I already owned on my iPod because I was sick of having to keep track of them, I've never downloaded anything from iTunes, they aren't getting mine.


6 posted on 08/26/2005 8:55:58 PM PDT by wagglebee ("We are ready for the greatest achievements in the history of freedom." -- President Bush, 1/20/05)
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To: Doohickey

No, this is just part of the negotiating process. Apple has done great things...dragging the record industy behind it. I have no problem with either proposal as outlined. Pay 1.49 for a new song or .70 for an old one. I buy the older ones in general. The invisible hand of market forces will result in higher quality songs on each CD, unlike the filler songs we have seen in the past few dacades.


7 posted on 08/26/2005 8:57:05 PM PDT by spyone
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To: wagglebee

.99 each == music as a service

Variable pricing == music as a product


A product, which has no value as demonstrated by modern file-swapping.


8 posted on 08/26/2005 8:57:50 PM PDT by SteveMcKing ("I was born a Democrat. I expect I'll be a Democrat the day I leave this earth." -Zell Miller '04)
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To: wagglebee; ambrose; CFC__VRWC; cyborg; Glenn; Hemingway's Ghost; MaryFromMichigan; meeps; mhking; ..
Music executives who support Mr. Jobs say the higher prices could backfire, sending iTunes' customers in search of songs on free, unauthorized file-swapping networks.

Nope, not me. Nuh uh. Never would. Nope.

iPod
Send FReepmail if you want on/off iPing list
The List of Ping Lists

9 posted on 08/26/2005 8:58:17 PM PDT by martin_fierro (Casey Sheehan died so mommy could freely act the jackass)
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To: wagglebee
Most of the music on my iPod is stuff I ripped from my CD collection, but I have downloaded stuff from iTunes as well. Most of the downloaded stuff is the one or two tracks on an album that I actually like, where I won't buy the album because I refuse to shell out twenty bucks for one good tune and 13 tracks of crap. Maybew they're not getting my $20, but they are getting something they weren't getting before.

If the RIAA wants to let their greed get the better of them, fine and dandy. I'll stop buying their music and just go get the latest version of Lime Wire.

10 posted on 08/26/2005 9:08:23 PM PDT by CFC__VRWC ("Anytime a liberal squeals in outrage, an angel gets its wings!" - gidget7)
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To: wagglebee

Anyone interested in podcasts, or podmails should check out a cool new site at www.podomatic.com. You can record and send voice messages called podmails that can be opened just like an email but with audio and/or you can download the messages onto an ipod. You can mix these with music too. You can also set up downloading of podcasts there.
I think the podmails are really fun.


11 posted on 08/26/2005 9:13:30 PM PDT by Aria (Terri: Do not ask for whom the bell tolls; it tolls for thee)
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To: wagglebee

If I pay 99 cents for a single song, I would like to be able to play it forever. Maybe I'll go back to recording songs off the radio with cassette tapes.


12 posted on 08/26/2005 9:19:09 PM PDT by operation clinton cleanup
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To: operation clinton cleanup
If I pay 99 cents for a single song, I would like to be able to play it forever.

That is exactly how iTunes works.

13 posted on 08/26/2005 10:27:09 PM PDT by CurlyDave
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To: spyone

Apple is coming to have the same place in the distribution chain that record labels had, and that confers some big advantages. Suppose Apple simply said to artists "post your music on iTunes. We'll pay you 25 cents for every $1 song sold." That's a much better share of revenue than the record labels provide to artists.

The artists would be giving up the promotion that the record companies provide, and they'd give up advances. But they'd get a higher percentage of the take.

The labels major advantage is their back catalog, which is a goldmine of intellectual property. Lack of that back catalog can cripple a service.

Apple would not necessarily have to take on the talent spotting/editorial function that the record labels currently provide. Disk space is cheap. Put it all up! Trance accordian group from Sandusky? Why not! It costs nearly zero, they don't have to press any CDs, and they don't really even have to guess whether they're good or not. If they're good they'll sell. If not, they'll take up fifty cents worth of dsk space.


14 posted on 08/26/2005 11:18:58 PM PDT by mcgredo
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To: wagglebee

The RIAA will never learn. The reason for song swapping was the fact that you had 19 dollar cds with one or two good songs on them....no one wanted to pay that much for two songs. Then along came iTunes and let you buy only the songs you wanted for a decent price....now they are getting greedy again and going with their dinosaur model of doing business....and driving more people back to swapping over the Net.

The RIAA is filled with complete and utter fools.


15 posted on 08/26/2005 11:28:41 PM PDT by MissouriConservative (Tolerance is the virtue of the man without convictions.)
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To: mcgredo

Very good analysis, thanks. Makes me lean towards buying Apple once the upcoming correction takes place.
Also, I think it would be a great idea if Apple bought TIVO. A great match, in my opinoin . Cheap too.


16 posted on 08/26/2005 11:36:03 PM PDT by spyone
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To: Doohickey
Watch for iPods to start being siezed for "evidence".

They'll have to pry it from my cold dead hands!

17 posted on 08/27/2005 4:54:35 AM PDT by feedback doctor (Going to war might mean terrorism, NOT going to war means slavery and death)
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To: feedback doctor
I have ripped all my Cd's to my ipod and have downloading quite a bit from iTunes. I love both!! Having all my music on my mac has also changed how often I get to listen to my music. Like now I can listen to it while I am knee deep in Call of Duty! Get a good list and watch the Nazi's get mowed down to Sonic Temple by the Cult!
I'm not too sure that the pricing scheme should change just yet, but I must admit that I like paying less for older stuff... that's what I have been mostly downloading off of iTunes anyway.
Saying that it is funny to watch these record company's try so hard to shoot themselves in the foot AGAIN. Jobs hauls their asses into the 21 century and they get all prissy about it! Kinda like the rest of the democratic party! lol
18 posted on 08/27/2005 5:09:35 AM PDT by SSR1
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To: wagglebee

There's already some motion in the direction of the record companies. I tried to buy the tune from the last segment of the Six Feet Under finale. I found it just fine, but they would only sell it with the 12.99 album.

I didn't want it that bad.


19 posted on 08/27/2005 5:31:57 AM PDT by papertyger (Power concedes nothing without a demand. It never did and it never will." – Frederick Douglass)
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To: CFC__VRWC

Can you help with a "discussion" we were having the other day? A friend insisted that "sharing" via Limewire is "illegal", and we were unaware that it is.

I thought that downloading for profit was illegal, but sharing wasn't. But, I am worried that I am wrong. What do they do when they come for you, if it is illegal?


20 posted on 08/27/2005 7:09:08 AM PDT by jacquej
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