Apple sets tune for pricing of song downloads
Since iTunes' launch three years ago, Apple has charged US consumers 99 cents for each track – a uniform price that Steve Jobs, its chief executive, favours because of its simplicity for consumers.
Edgar Bronfman, Warner's chief executive, and senior executives at EMI and Sony have in recent months supported variable pricing, which would allow them to charge more for new material from top artists. Universal has taken a more modest approach, suggesting that the market should be allowed to develop further before any adjustments are made.
The issue has occasionally become acrimonious, with Mr Jobs last year publicly labelling the industry "greedy". Apple and the music companies declined to comment on the current round of negotiations. However, several music executives privately acknowledge that they have little leverage over Mr Jobs.
I officially learned over the weekend in my own personal endeavors that Apples do indeed record music and handle media (music, video, etc.) better than PC's. This was common knowledge obviously, but I officially learned it with my own two eyes (and ears). Not only does Apple seem to care about letting everybody's inner musician find his/her way out in the easiest method possible (Garage Band is super easy and high-quality compared to a PC program like Cakewalk...which is what I own), but they also care about letting everybody's inner music fan listen to what they want cheaply. Good for them.
So industry execs want to charge MORE than $1 for a single downloaded song? Let's do some math...
Okay, figure the average cd is about 12-14 tracks long, with artwork, for $14.99-$18.99, meaning each song is worth between about $1.07 and $1.58. Fine. That means $0.99 is a deal. Only...cd's also come with artwork, cd rom capability (for music videos or live clips), not to mention its own kind of portability (you don't have to have an mp3 player/iPod with you wherever you go to listen...granted, those mp3/iPods are quite portable on their own...that's what the intent was in the first place...but it's a different kind of portability and convenience that doesn't apply to every music customer...me, for instance). You would think that would be worth $0.07-$0.58 per song. So if I wanted to download an entire album on iTunes, it would cost me $12-14, I would get no artwork, and I'd have to burn a cd if I wanted to listen to it in my car. That, or spend a decent amount of dough for an iPod and car adapter.
My wife has an iPod, and she loves it. Listens to it when she's walking or mowing (no, she doesn't do all the mowing...she just comes from a bloodline where people can't help but help) or working in the kitchen or cleaning, whatever. Record companies have already made it as difficult as possible for her to upload some of her cd's onto it (copy protection is bad technology and a bad faith idea), and now they want to charge her more than $1 for a single song? Sure. Good luck. Once again, good for Apple. Next time I'm shopping for a computer, I know what I'll be buying. Count me in as a convert.
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