brainwagon

The Register reports that major music labels are trying to get music retailers to increase prices. What a good idea! Let’s make it even more costly for individuals to acquire music, that’s sure to drive down the rates of copyright infringement!

Seriously, what are they thinking?

The problem appears to be related to Apple’s iTunes Music Store. Apparently 65% of all music downloads for money occur through the iTunes music store. Apple’s success in online marketing of music appears to be at the expense of the major labels (or so they apparently believe) and they apparently aren’t happy.

I do see why they are worried. The wholesale price for songs is 65 cents per track. Apple collects 99 cents per track, netting themselves 34 cents. The record companies do have expenses that Apple probably does not: they do after all pay to produce albums, and they have to manufacture them. One could expect that over time, online distribution of music will become the norm, and the overall market for the solid vinyl plastic form of music will become a thing of the past, and record companies will not be able to maintain their lofty lifestyles.

But it’s there fault for handing a huge market over to Apple for a pittance. You can’t put the djinni back in the bottle, and it will be damned tough for them to take the market back. Raising prices at this point results in a Pyrrhic victory for all businesses involved.

It’s time to evolve or perish.