[opendtv] Re: Book: When Labels Fought the Digital, and the Digital Won

  • From: "Kon Wilms" <konfoo@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 7 Jan 2009 13:07:29 -0800

On Wed, Jan 7, 2009 at 6:21 AM, Craig Birkmaier <craig@xxxxxxxxx> wrote:
> I'll save John the effort of a reply. Yesterday Apple announced the virtual
> end of DRM on iTunes and a new pricing structure that will kick in in April.
> Most catalog songs will drop to 69 cents, although some "hits" will increase
> to $1.29.

Sorry, I'm not buying it.

"Instead, the majority of songs in the store will drop to 69 cents
beginning in April, while the biggest hits and newest songs will go
for $1.29. Others that are moderately popular will remain at 99
cents."

- Old catalog of dead tunes will be 69c
- New catalog will be $1.29
- Stuff noone cares about will be 99c

Translation: The new price of songs is $1.29. Music is a disposable
commodity, and thus most profit will always be in the new content. The
*new catalog* won't trickle down to 99c/69c. I bet you it remains at
$1.29. Therefore over time the catalog pricing grows to a majority of
content being $1.29. The music studios won.

Good choice on the 69c number though. It's almost as if the studios
are giving the users the middle finger.

Yet the press is too dumb to QFT and see through this little debacle.

I'll stick with eMusic and Spiralfrog.

Cheers
Kon
 
 
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