Some leading music labels are in talks with online retailers to raise wholesale prices for digital music downloads, in an attempt to capitalize on burgeoning demand for legal online music.
The moves, which suggest that the labels want a bigger slice in the fledgling market’s spoils, has angered Steve Jobs, the Apple Computer chief executive who is behind the popular iTunes online music store.
But music executives expressed caution about their ability to push through unilateral price increases. Among the biggest groups, Universal Music and Sony BMG are known to be particularly reluctant to disrupt the market for downloads. One top label said it would not raise wholesale prices now because the market was not yet mature enough for a price increase.
Because raising the cost to $30CDN for low-quality restricted music files that only play on select computers will motivate people. Riiight. The labels that make up the RIAA should really get it into their heads that paying $30 for a CD is bloody expensive as is, and that paying $30 for what essentially broils down to something much worse than a CD will not make people wish to purchase it. Rather, they’ll opt for an alternative. Any alternative: be it piracy or otherwise.
I swear: the music industry could be better managed by brain-dead monkeys.
*UPDATE* *UPDATE* *UPDATE* *UPDATE*
The East Carolinian newspaper has an article on the RIAA’s fight for justice in its war against piracy. I replied the following to the article:
Well, I do believe that the piracy situation is only as a consequence of the RIAA’s own actions.
People don’t want to spend $20 on a CD that they may or may not enjoy. But how are they to taste test this music? The radio? Most radio networks play over the same 5 songs repeatedly over a 24 hour period. Television (ie. MTV)? They only stick to mainstream. That’s fine if I enjoy Brittany Spears, less so if I wish to hear a newcomer Jazz artist. So how am I to try the music? Via friends and their personal collections? They may have some CDs of interest, but I like different music than they do. And I am not going to spend a day’s pay on a shiny new disc that could potentially be crap.
So what do I do? I download it. I listen to it. If I like it, I buy it. That’s how I’ve come to buy all the CDs and concert DVDs currently in my possession.
But beyond that, the RIAA is continually shooting themselves in the foot. The Internet. Its a new business platform. And what do they do? They charge incredibly high royalties on legal P2P alternatives! This is for music files that are low-quality, DRMed (ie. plays only on certain computers under the right conditions… will not work in a few years), and a pain to deal with. And yet the labels the RIAA represents want to hike the price? Oy vey! Charging $18 for a downloaded album, which costs $0 to replicate and distribute, and that is limited in both quality and flexibility of use. Talk about a good dynamic.
I have little respect for the RIAA, as you can see. Don’t get me wrong: I love the artists. But I hate being ripped off. If I want to steal music, I’ll rob a bank first and then go buy the CDs at the store… After all, the RIAA lobbyed itself so well within the justice system that the penalties for me robbing a bank are less worse than me downloading one music file.
Way to go RIAA!
Julien McArdle