Apple CEO Steve Jobs vows to stand firm in face of ‘greedy’ record companies

Apple Computer Inc. CEO Steve Jobs vowed Tuesday to resist music companies’ ‘greedy’ demands for price increases on the iTunes music download site and warned that such a move would encourage piracy,” The Associated Press reports.

Apple’s CEO spoke to reporters before the opening of the Apple Expo in Paris. Jobs said that some record companies were pushing him to raise the price of each song download from the current $0.99 per track price. The record companies “already make more profit by selling a song through iTunes than on a CD, with all the associated manufacturing and marketing costs, Jobs said. ‘So if they want to raise the prices it just means they’re getting a little greedy,'” AP reports. “The Apple co-founder and CEO indicated he plans to stand firm. ‘We’re trying to compete with piracy, we’re trying to pull people away from piracy and say, ‘You can buy these songs legally for a fair price,” he said. ‘But if the price goes up a lot, they’ll go back to piracy. Then everybody loses.'”

Related articles:
NYT’s Pogue to record companies: it’d be idiotic to mess with Apple iTunes Music Store prices – August 31, 2005
Apple CEO Steve Jobs prepares for pivotal fight on digital music prices – August 28, 2005
Record labels to push Apple for higher iTunes Music Store prices in 2006? – August 05, 2005
Record labels look to raise iTunes wholesale prices, music industry fears Apple’s market domination – March 05, 2005
Report: Apple CEO Steve Jobs ‘angered’ as music labels try to raise prices for downloads – February 28, 2005
Report: Music labels delay Euro iTunes Music Store fearing Apple domination – May 05, 2004
Greedy Big Five music labels looking to jack up iTunes songs to $2.49 each? – April 22, 2004

31 Comments

  1. (Slaps his own Forehead) Don’t the labels get it?!?! After all this they really havnt learnt anything at all. Apple has 2 choices, 1. start their own label where they split the profits between themselves and the artist cutting out the greedy record producers or 2. Raise the price of songs and dont do anything when people go back to stealing music.

  2. Well, once again Steve Jobs says it very plain and simple. He has a great way of deliering his message so anyone can understand it. That’s cool. And I guess it’s true too. The only way you can ever compete with “free” (pirated music) is if the price is reasonable.

    What’s the plan? Kill off iTMS by inflating prices now that it’s a succes and go with Windows Media based stores? I can’t help but think that there’s some hidden agenda, when only five big companies control this much of the music market and then start messing with distributors.

    It would however be a good idea if Apple started licensing the iTMS to say…Sony. People will still buy iPods.

  3. Do Apple Fans never sleep?! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
    This is great news. The only music I will pay full price for is NZ music all other music execs can stick their price increases where the sun doesn’t shine!

  4. Well, not everybody will lose. Apple will still sell iPods, even if those are filled with pirated music.
    At a German consumer electronics fair (Popkomm), a representative from Universal said (translated): “A price of 1.49 to 1.99 Euros ($1.80 to 2.40) is realistic, given that some people pay as much as 2.50 Euro for ring tones.” Gives you some idea about the mindset of these people.
    Well, I don’t buy ring tones, and I sure as hell will not buy single tracks for 1.99 Euros. Time to start digitising my old vinyl records.

  5. I second that winmacguy – I can’t wait to get a NZ version of iTunes. I do wonder if they’ll put a premium on the price down here though – they’ve been in negotiations with the labels for years with no success – if they do then I’ll ‘aquire’ my music elsewhere….

  6. I have just finished reading iCon. After reading about the stubborn determination combined with a good ol does of RDF from “His Steveness” when he thoroughly believes in something I doubt very much that he will allow for price increases in the iTMS.
    The main reason I support paying full price for NZ music CDs is that our artists although orignal and very creatve have a very small market with our population of just on 4 million people, unlike the US or the UK or Japan or Europe with their huge populations.

  7. hagar57 –

    Big dip in iTunes sales would put a big hurt on Apple’s iPod sales as well. There are competing products for much less $$. If people aren’t buying from iTMS, then they’re not locked into using the iPod device.

    If I’m really trying to cut costs, I’m going to pirate my music and put it on a cheaper player.

  8. Apple Computer needs to buy Apple Corp., thus killing two birds with one stone. This will terminate the stupid law suit, it will allow Apple computer to enter the music creation business. Sign up some big name groups and be the distributor for them. They need to make Apple Corp a major record label again. We need more competition in the music business industry. They then need to get at least one of the majors on board with AAC/Fairplay. The longer they hold out on this the stronger the WMA/M$ groups will get. By holding out as the only distributor of AAC/Fairplay they are in fact forcing the expansion of the WMA/M$ distributors. The record companies actually want this competition between AAC/Fairplay and WMA/M$ because it has the online distributors fighting each-other in order to distributer the labels music. Apple may be the leader in legal online distribution right now but try to imagine what M$ will do with $200B and 10 years of time.

  9. PC Apologist

    That argument doesn’t stand up. There have always been competing products to the iPod but no one’s been running to them. If you think the iTunes music store is the main reason people get iPods I think you’re mistaken.
    Even if people begin pirating they can use their iPod and iTunes to organize their stuff way easier than the alternatives that are out there now.
    And why do people always say you’re “locked in” to using ACC. You can make MP3s from the CDs you already have, you can get other MP3s from other sources etc.

  10. MUST RAISE PRICES! I NEED A TOILET MADE OF SOLID PLATINUM!!!!
    HRRRRRRAGGGGGH!!!! MORE MONEY! MORE MONEY! I’M RUNNING OUT OF THOUSAND-DOLLAR BILLS TO WIPE MY BOTTOM WITH!!! NEED TO FINANCE THE RIAA MILITIA AND BUY MORE SENATORS! EXTORT MORE MONEY OUT OF TEENAGE DOWNLOADERS! HRRRRAAAAAGGGGH!!!

    MDN: “horse,” as in “Hey Record Execs: F*** YOU AND THE HORSE YOU RODE IN ON”

  11. Big dip in iTunes sales would put a big hurt on Apple’s iPod sales as well. There are competing products for much less $$. If people aren’t buying from iTMS, then they’re not locked into using the iPod device.

    —-

    I see where you’re going but I’m not biting..

    Most people think the iPod pushes the iTMS sales, not the other way around… in other words.. the iPod is cooler than the store.

    By most people, I mean… the critics.. remember the quote about how Napster could kill the iTMS if it weren’t for the iPod..?

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