Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices

“Apple Computer Inc. boss Steve Jobs pledged yesterday to repel ‘greedy’ record companies’ demands for higher music download prices, warning that any such move would encourage piracy… As their contracts with Apple come up for renewal, music companies are seeking to improve their take from sales through the U.S. iTunes site, which charges 99 cents (U.S.) per song. Prices are typically higher in Europe, Japan and other regions,” The Globe and Mail reports.

The Globe and Mail reports, “Mr. Jobs indicated he plans to stand firm. ‘Customers think the price is really good where it is,’ he said. ‘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 added. ‘But if the price goes up a lot, they’ll go back to piracy. Then everybody loses.'” Industry analyst Philip Leigh, who runs U.S. market research firm Inside Digital Media, said that as long as Apple controls the market for music players and paid-for downloads, ‘it’s going to be very difficult for the labels to avoid dealing with Steve Jobs on his terms.'”

Full article here.
This battle is just getting started.

Related articles:
Apple CEO Steve Jobs vows to stand firm in face of ‘greedy’ record companies – September 20, 2005
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

23 Comments

  1. I think Mr.Jobs is right anyway. Some people still think that $1 a song is to much. So if they raise the prices even higher that will definitely push people back to piracy. Also not mentioned above Mr. Jobs points out that the record companies are still making money do to the fact they are not having to pay for manufacturing,packaging and shipping like they do with CD’s.

  2. Screw the record companies. If they don’t like the Apple model well they don’t have to sell through the Store. It won’t be long before artists signed with those companies leave and go somewhere else. Or go it alone even. Hell with the power of computers these days you can make a Hollywood movie on the things so why can’t artists just record at home. They may cry poor but I’m sure they have a few spare million lying around to set up. Or how about a musicians union or something where everyone chips into a communal studio that all muso’s can share. Record companies are just advertising agencies. You don’t need them.

  3. Yeah, rock on, Steve! I can’t believe 2 of the 4 record companies are short-sighted enough to be pushing on prices already…wait, yes I can. 🙁 I own over 700 cds, entirely legally, but the majority were purchased used (pawn shops) or music clubs at discount prices. Why? B/c they’re trying to charge way too much for CDs. The market has spoken, the record companies need to either listen or go out of business. I’m on the verge of vowing to only buy independent artists, and I’m in the record industry’s key demographic. They need to watch their steps over the next few years.

  4. This is beautiful. Jobs has fired the first salvo in a very public way. If the record companies try to raise the prices they publicly look like the greedy bastards they are. He is also sending a warning to them that Apple could become the world’s first global digital label. The record companies have no other partners to turn to. The ipod keeps rolling over everything in its path. I can see the competitors trying to sell their tiny market share and playskool players. Good luck.

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