Warner music exec discusses decapitation strategy for Apple iTunes Music Store

“Michael Nash, Warner’s digital strategy chief, suggested labels might have no choice other than cut Apple’s digital music sales off at a stroke,” Andrew Orlowski reports for The Register. “‘What if Jobs says 39 cents or 29 cents per download – what then? The industry can say, OK we’ll cut him of – very few people people buy music from digital downloads,’ said Nash, who pointed out that most of the music on iPods is from their own collections. The iPod won’t disappear, he pointed out, and the decapitation will really feel no more painful than a gentle shave. ‘[Jobs] will figure out another model,’ said Nash… His comments came at the CTIA Telecomms Show, in a panel titled ‘Artists, Labels, Publishers: What Do License Holders Want.'”

Nash also said, “The industry got together and said ‘We don’t want another MTV’. Well, now we’ve got another MTV, in Apple. And we have to deal with it.” And an unnamed executive stated, “It’s going to be difficult to get the consumer to stop thinking about owning music, and think about paying for participation instead,” Orlowski reports.

Full article here.

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Related articles:
Warner CEO Bronfman: Apple iTunes Music Store’s 99-cent-per-song model unfair – September 23, 2005
Analyst: Apple has upper hand in iTunes Music Store licensing negotiations with music labels – September 23, 2005
Steve Jobs plays high-stakes poker with greedy record labels – September 22, 2005
Record labels accuse Apple CEO Jobs of ‘double standard’ as they seek to force iTunes price increase – September 21, 2005
Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices – September 21, 2005
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
BusinessWeek: Apple unlikely to launch music subscription service – August 15, 2005
Record labels to push Apple for higher iTunes Music Store prices in 2006? – August 05, 2005
Study shows Apple iTunes Music Store pay-per-download model preferred over subscription service – April 11, 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

85 Comments

  1. This Nash is a moron, ” most of the music on iPods is from their own collections ” ? Yeah, that may be true for some people, but my sons, 14 and 12 years old, downloaded more than 50 songs from iTune and they never buy any CD from the store before!!! That’s why Apple sold more than 500 million , get this Nash, 500 millions songs and counting!!!

  2. Unbelievable! Certainly, downloaded music now only represents about 5% of their sales, but it is obviously the future as far as growth potential and buying habits of the next generations of consumers. And can you believe this quote further on down in the article?

    ””It’s going to be difficult to get the consumer to stop thinking about owning music, and think about paying for participation instead,” said one executive.”

    Talk about understatement of the millennium! These guys are clueless.

    Magic Word is “left” as in the record companies have been left behind because of their own delusions.

  3. PBS “Nightly Business Report” doing series of segments on music business. Last night lots of info on indies and downloads. Musician saying “iTMS downloads have paid my mortgage for months.”

    Another guy I think IN the industry saying, “Downloads are going to replace CD sales like CD replaced vinyl.” (paraphrased)

    THIS quote following above: “And I’m not talking 5-10 yrs down the line. I’m saying 1-2 yrs.”

    Watch that wave guys; you can surf it or get drowned.

    MW: “future”. (self-explanitory)

  4. First things first: why does the Register employ 12 year olds to write their articles? They are so hard to read, and they take ridiculously circuitious routes to what are fairly straightforward points.

    Next, from TFA, from some exec: “It’s going to be difficult to get the consumer to stop thinking about owning music, and think about paying for participation instead,” said one executive.”

    This is some kind of NewSpeak to be sure, but i think it translates roughly to “… i’m a douche-bag …”

    As i have said before, Apple hands them a revenue stream, helps them turn CD sales around, and their response is to try to cut them out of the loop.

    The only people who don’t like the 99c model are the people making the most money out of it. Riddle me that one …

  5. It is obvious to the labels that they are very vulnerable. Would this bonehead throw that card at Walmart who sells far more music than Apple? Nope, but Walmart doesn’t have the balls to make a move to eliminate them – Apple is positioning perfectly to facilitate their own brand. No band needs a label then. That is the sound of panic in a punks voice.

  6. Music industry execs genuinely believe they are the shapers of contemporary culture, and are thus entitled to view anybody and anything else as merely consumers or tools to be used to sell more records. They have completely forgotten that people want to own their music, and that music is such an integral part of peoples’ lives that the very idea of simply renting it is almost repulsive. That may change in generations to come, but not for the next 10 years. If they think they can turn the music industry into a ring-tone business charging $3 a pop for something you can buy on-line for a 1/3 of that, they’re in for a nasty surprise.

    Unfortunately, the mobile phone industry has managed to delude the music execs even further, and convinced them that mobile-based music is the way forward, at excessive prices controled by unuseable DRM schemes. Until the mobile industry is proved wrong (which IMO will take about 3 years) the music industry will continue to dream that it can sell individual tracks at $3 each, and view a 99c price-point as an anathema to be left behind as soon as possible. However, there’s no way Warner, or anyone else, would unilaterally withdraw from iTunes and see its sales drop off the online music charts. Its just noise.. the noise of a bunch of overpaid egos strutting around in their cages, showing off to one another in a way that only music execs can, unaware that they’re going to be slaughtered.

  7. what a knob job this guy is !
    I will never pay a subscrption fee to download music, looks like the music exec’s want piracy to come back for a while then want to jump in bed with MS to try and save the day. They are nuts

  8. The music industry needs to look at another industry that’s been affected by the digital transformation of an industry & the digital revolution.

    How many people still own & regularly use film based cameras? It seems l ike everyone has a digital camera (be it high end or low end). When was the last time you took a film camera in for development?

    Take Kodak for example. They could have paniced and feared the digital revolution when film camera sales declined. They could have paniced when film developing declined. Did they assault the customers with anti-digital propoganda? No. Did they fight back in a positive way, which helped develop an industry that’s just as powerful as it always was if not MORE SO? Yes and hell yes!

    Every Kodak printer and camera in the digital realm was designed to help assist the user in faster & easier prints. They realized film was declining and stepped up development of more advanced printers, card readers in printers, paper, cameras that connect TO the printers (no need for even a computer if you want).

    Kodak fought their battle in a possitive way with the customers at home. They also got into the field of kiosks with helping customers walk into any convience store (Walgreens in my area for example) and scan and print directly AT the store. You can off load your digital prints AT the store and develop them in an hour or less. Every time I am in Walgreens, those kiosks are being used!!

    Kodak’s attitude towards embracing an oncoming technology should be the model for the music industry. Don’t fear change, embrace it!!

    Don’t fight progress, it alienates your customers and stifles legitimate sales. Bite the bullet, and help be a leader in the digital revolution in your industry.

  9. A possible “new model” is to simply bypass the infestation that is the known as a “label”. Labels do less good and more damage as technology advances. Without labels the price could actually have a chance to go as low as 29 cents.

    These comments by Nash are paranoid considering lablels like his set the high 99 cent price in the first place. Apple only makes a few cents that much per tunes (labels definitely make more than that), and they don’t want to lose money on each track if they can help it. Thus tunes will only be 29 cents if increased iPod sales make it wothwhile (the paranoid nightmare of Nash).

    We don’t hear the other beneficiaries of the iTunes store like the credit card processors and Akamai (of which Apple own’s a part) wanting to dictate higher “more flexible” prices.

    Another model is for Apple to become a “label” themselves. That should get the attention of the Beatles.

  10. What if Jobs says the record companies should pay the user for each song downloaded!? If you’re gonna talk about theoretical situations and concerns at least be realistic – Jobs has said they’re against increasing prices, I don’t think I’ve ever heard anything mentioned about cutting them to less than a third of the price.

    Now is the time to forge head first down the route of a one format digital download world, I’ll fully admit that apple can’t expect to and shouldn’t control digital downloads entirely but their model is the best – record companies should commit to it but get Fairplay to be opened up to licencees or something.

  11. “Very few people buy music from digital downloads”. Hmm… just enough to buy 500 million songs. They can eliminate iTunes, but it won’t change their sales margins. You’ll just see 500 million more downloads from peer-to-peer.

    The music industry can strut and cackle all it wants. I’m not buying another CD. Ever. I can get my music legally through iTunes, or illegally through peer-to-peer. There aren’t enough lawyers on the planet to prosecute every Tom, Dick, and Downloader.

    It’s time the music industry either faces the future or gets steamrolled by it.

  12. “It’s going to be difficult to get the consumer to stop thinking about owning music, and think about paying for participation instead,”

    Divx failed with that marketing model.
    (That is, Divx the home video format, not the codec stupidly named after it. “Not to be confused with the defunct home video format.”)

  13. Scared. Seriously scared. And I actually don’t blame them for it. The new model will ultimately move bypass the record companies entirely. Then it won’t be 99c. or 33c, it’ll be nought cents.

    Because they were:
    – shortsighted
    – lacking in imagination
    – stuck in their ways
    – greedy
    and above all:
    – ungrateful for the lifeline Jobs/Apple threw them. Or perhaps they don’t even recognise it as a lifeline?

    Doesn’t sound to me like much will save them now…

  14. The sooner that the labels themselves are decapitated the better…and it will happen, the only question is how soon. If the labels cut off Apple, the artists will start bypassing the labels knowing that they aren’t really needed any longer anyway.

  15. So, these idiots prefer to go back fighting illegal downloads. They won’t get a penny from those downloads and they will spend millions on lawyers … all for nothing since they can’t win this war. Apple is wining the war for them. What a bunch of short-sighted, money-grabbing, unscrupulous, incredibly stupid morons.

  16. Apple ought to invest in a new company. Call it, I dunno, Banana Records. Artists only sell their music through iTunes. The company and the artist split the profits 50%-50% after production and promotion costs.

    Seriously, I’d be willing to bet there will be a mass exodus of artists from Warner if they pull out of iTMS.

  17. Cut Apple off? All of them? Cut Apple off?

    Listen … I’ve never taken a single p2p track in my life. Not one. I buy CDs at full retail, in fact. Like about twenty-five thousand dollars worth of CDs, lifetime total.

    But I swear to god, if they pull that stunt I’ll go steal two hundred and fifty gigs of compressed music and then I’ll turn right around and I’ll steal two hundred and fifty more. Then I’ll give it all away and start over.

    Bottom line. I’ll never purchase another piece of music again if they try that crap. Not in any formatting.

  18. Decapiate itunes – decapiate your music buying audience!

    They say they dont want another MTV – well guys. put it this way, SOMEONE has to be the market leader!

    What do u prefer – Microsoft with it’s stail and stifling business ways or Apple, who are doing it ‘for the music’.

    I think the Record labels should wake up and ‘do it for the music’ also!

    If they don’t – no one is gonna buy their records!

    The choice is your guys, go with itunes and prosper by watching the market grow OR stifle the legal music download market by over pricing and destroy the download market in one fell swoop!

    BASIC RULE IN ALL BUSINESS: ‘GIVE THE CUSTOMER WHAT THEY WANT’ – Ignore this guys and you lot are gonna be unemployed because there will be no music business!

  19. [I]Nash also said, “The industry got together and said ‘We don’t want another MTV’. Well, now we’ve got another MTV, in Apple. And we have to deal with it.”[/I]

    I’m not a lawyer, but that sure does sound anticompetitive. Can a lawyer answer if this is legal?

  20. Who’s paying your freight Warner…better think twice before taking
    a dive. Apple’s system can be unnerving…Steve Jobs knows his
    customers and you should be hip to that, dig? <•>|<•>

    iTunes & iPods will be around as long as digital transmission exists…
    we got it, it’s soooo simple. ” width=”19″ height=”19″ alt=”mad” style=”border:0;” />

    CT =====]———— Staying connected

  21. Also these guys just don’t get it that ring tones are fundamentally different from a song that you play to listen to once in a while. I could see myself paying 3 bucks for a ringtone. or even 3 or 4 ringtones. But I am not gonna be buying 500 ringtones fer cripes sake.

  22. Let’s see… Apple owns 75% of the legal music download market. The record companies make pure profit from the iTunes Music Store. No packaging costs, no shipping costs, no distribution costs. It’s 100% profit. The iTunes store recently passed 500,000,000 downloads at $.99 cents each. But the music industry executives aren’t happy with that. This reaffirms my opinion that some people in management are complete idiots. I really hope Warner is stupid enough to do this. I’d buy tickets to see what happens to them.

  23. Rome and there is Vatican City. Of course, IT is the city of Rome.

    Rome fell in a day…REALLY??? Not from where I stand. ” width=”19″ height=”19″ alt=”long face” style=”border:0;” />

    CT =======]———— ” width=”19″ height=”19″ alt=”LOL” style=”border:0;” />

  24. It’s the usual BS from these losers. The comment that struck a nerve more than anything was the “participation” comment. It shows the track these greedy whores are going on: You don’t own nothing. You pay us for the priviledge to hear what we want you to hear.

  25. i have spent about $5000.00 on music thru iTunes Music Store. i follow the DRM requirements, and have no complaints. because of iTMS, i’ve bought music from artists that i otherwise would not have. i have about 10,000 tracks on my iPod right now; there is no way that i would ever consider any form of subscription service for music. i want to pay once and be done. what a bunch of tools; they don’t give a fsck about their artists; they just want to snork up as much money as they can from their artists rotting corpses. if this isn’t the behaviour of a bunch of vultures, what is? iTMS provides what we want; neither the artists nor the buying public need any stinking labels; the sooner they’re all gone, the better it will be for everyone.

  26. I’m 40 something with a disposable income, why would these record companies want to piss me off? Digital downloads are here to stay. I have not purchased a physical CD since April of 2003, but I have purchased hundreds of tunes at the iTMS. For Christ sakes, they are getting rich off me and they’re still whining! Why are they insulting me with this rental music garbage, or $1.79 downloads? I’ll never rent my music, and I won’t pay more than 99 cents per a download. Period.

    Go ahead record companies. Kill iTMS. I dare ya. If you do it, I’ll buy even more music from allofmp3.com. At least they pay the artists something, but the best part is they cut out the record companies altogether!

  27. For years, in forums such as this and others, I have argued strenuously against piracy of music. I’ve derided those pass copyrighted material around the world with no thought of compensated those that made the product so coveted. I still believe all that, but I no longer have an ounce of sympathy for the record label exec. They say “Jobs will find a new model”? They say they want to “cut iTMS off”? I say Apple cuts them OUT and makes deals directly with the artist. It’s been mentioned here before that a natural solution would be for Apple Computers and Apple Records to kiss, makeup, and partner in a venture such as this. That should be the “new model” that Jobs comes up with. I want to see these record label “suits” sitting by the Freeway onramps begging for a handout just so I can drive by without a glance. I’m pissed.

  28.  
    “labels might have no choice other than cut Apple’s digital music sales off at a stroke… and the decapitation will really feel…”

    This sort of action will amount to grounds for breech of contract with artists. Labels will lose their artists in droves. Artists have enough skill to deal directly with Apple’s ITMS. With this consequence seemingly a most likely occurrence now given his extreme attitude, the man’s just about right in one aspect, I suspect; the labels might have no choice.

    The iTunes Music Store has become an institutional bulletin board. Fail to be informed of the content of that bulletin board at your own peril.

    Besides, Blackbeard can easily handle guys who in a panic spout, “cut off with a stroke and decapitate.”
     

  29. Sorry, Michael Nash, but either I own my music or I do NOT participate. There are some web sites where you purchase music directly from the artists that created it. How would you like that model to spread Mr. Nash? Maybe Apple should figure out how to encourage that model and let these arrogant bastards twist in the wind.

  30. This is only the soundings of a CEO/President that has grossly underestimated the market with Apple & iTMS.

    ‘Don’t worry they thought it’s Apple and they only have a small market share’, bozos!

    Bronfman, Jr and all of the executive board are answerable only to their shareholders, they can and will call for Bronfman to resign should they feel that the board has worsened the companies overall performance. Then yes they’ll vote on who’ll be the next CEO/President.

    I sent an email to my local copyright theft organisation, FACT, telling them of my willingness to go to jail if my legal choice of where I buy music off the internet is forced to close, unlikely I know, but to offer those in power a worse case scenario helps more.

    Not sure if it was a good idea, but hey I have deep feelings that Apple have provided the answer to piracy and idiots at the top deserve to get burned* for their gross mistakes, after all that is what happens in business when you make gross errors.

    *By burned I mean to state lose revenue due to piracy and from peer-to-peer servers in countries like Russia, out of their reach etc.

  31. I am an artist and illustrator. Maybe that’s an idea? Instead of this silly idea people have of buying art and actually keeping it to do whatever they like with it, maybe we artists should sell tickets instead, so people can participate instead? If they don’t pay their monthly fee, we will come and take that scenery above the couch down immediately!

    Maybe it isn’t crack they’re on these people? Maybe it is some kind of hallucinogene? Hallucinations can be really convincing, sometimes. Well, they just tell me when they hike up the prices and I will google for the nearest peer-to-peer service.

  32. as retarded as these people are they still have a lot of power. when they want to push the variable pricing model and apple doesn’t go with it, they can just stop dealing with apple. downloadable music doesn’t go away when apple is not in the game anymore. all the other wma-based shops will do what the majors want. the market leader will change to napster or real or whoever. simple is that. here in germany apple is only second to musicload with a 15 % marketshare. apple doesn’t hold the cards here i think. it’s sad but it’s true, if the record labels want, they can pull the plug of off the iTunes Music-Store. And Apple being a label is just wishful thinking. It would take years to build that up. Years in which Apple is the direct enemy of the labels with no songs of the majors to sell on iTunes. Be careful apple, don’t get to arrogant here, it is a dangerous situation for the whole iPod-iTunes combo. I hope you do it wisely, Steve!

  33. re: Nashe’s comment: “It’s going to be difficult to get the consumer to stop thinking about owning music, and think about paying for participation instead”

    Is he saying that the music industry wants to move us way from owning and submit everyone to a subscription model? I wouldn’t have thought these guys were that arrogant and desperate.

    Yet it will be interesting to see what happens in the next 12 months. Will the labels pull out of iTunes? Will they go running to Microsoft? This is going to be quite a show.

  34. iTMS have over 10 million customers, so I am very feel bad for the RIAA lawyers if half of these customers start Peer to Peer music. I am consider this is a form of protest to the music industry and Congress because Congress is only side with record industry. It will be very funny if 10 million of the would be P-to-P use the same name such as itune, Apple, or iTMS. Let me know which name we should use in our protest. The Senators will have a hard time read all the name of iTMS#1, iTMS#2…, and iTMS#10,000,000.

  35. The executive’s comment was a textbook example of “bluster”. I honestly doubt you would hear talk like that if they truly had a leg to stand on. Cutting off the iTMS means running away from the ONLY model that works. Jobs knows this and so do the record companies, which are very, very frightened. They don’t like the idea of Apple holding so much power over them.

    That being said, the record companies have no choice but to go along. But they’ll do so kicking and screaming.

  36. “very few people people buy music from digital downloads,’ said Nash,”

    Unbelieveable. How does more than half a billion songs equal very few people. That’s more than $500,000,000 in sales. in just a relatively short time. It will certainly balloon now that so many stores are on line worldwide, with more to come.

    I think the shoe is on the other foot here. Steve Jobs can simply say; “We’re removing your label from the iTunes store.” Then you’ll see panic in the streets.

  37. This article reminds me that there are always winners and losers when any new technology is introduced:

    Refrigeration:

    Winners – Refrigerator Manufacturers and Customers who can keep food more easily.

    Losers – Ice House owners

    I think these record “executives” are the future ice house owners. There has never before been a group more deserving of being made irrelevant by new technology.

    Also, I concur with the people who suggest buying used CDs. Most of my new purchases are now used CDs. No additional revenue for the music labels, I can rip them with no DRM in any format and it supports a local business.

  38. Yes, Michael, I’m sure that you and your idiot boss, Baby Bronfman, have really thought about the implications of your actions.

    No sooner has Madonna agreed to iTMS distribution than you want to take her material from it – I’m sure she’ll be thrilled and she’ll doubtless wish to thank you for depriving her of income come her next contract negotiation. And I’m sure that goes for all the other Atlantic/Elektra/Asylum/WB artists as well.

    The moment you so obviously put your narrow interests above that of the artist is the moment that you cease to be an attractive career choice: artists who would otherwise sign up to the “security” (what a joke) of a big label will be encouraged to think of whether they should really be signing to an independent.

  39. Apple has got it right. Like many of you said, if they raise prices, there will be a lot more pirating out there.

    I’m very grateful that there is iTunes because as an independent artist, people all over th world can download my music and they have! My songs are priced exactly the same as every other song and people don’t seem to mind! What does that mean for me if they a varied pricing? obviously indie’s are not hot property…will they make our songs priced $0.50 and the hottest new songs from the labels $1.50? I like that everything is equal on iTunes and it benefits everyone.

    The main issue is that iTunes helped a lot with the pirating and what they intend to do is push people back into it! They are being VERY selfish!

  40. Half a billion downloads isn’t significant? These guys are really greedy aren’t they? Fine everyone will be back to PtoP downloads since they don’t want our money the legal way. Hey Michael Nash stick that in your ____ and stuff it. Steve Jobs founded legal downloads where everything was fair and now stupidity in the record industry wants to blow it all away. That’s fine but so much for legal downloads. They will have to sue the world if they take iTunes down cause everyone will be back to PtoP downloads again. That’s half a billion going back to PtoP. Think about it Mr. Nash you would basically make people go back to illegal downloads.

  41. Guys this all a part of the negotiating process. Apple is (or will be) negotiating over a new price. The music industry is just trying to put pressure on the other party. They’re using the press to put pressure on Apple to up the ante.

    Eventually they’ll sit down and cut a deal. As for the issues of “participation” i.e. renting music, the public won’t accept this model and the industry can’t afford another illegal download war. Apple and the companies need each other so they’ll cut a deal.

  42. His yearly salary is $1.00 — that’s $1.00 per annum!

    Warner is barking up the wrong tree. Take that to your boardroom
    warner and see if that makes any sense to your high priced group
    of executives.

    All in all…you gotta feel that these types of situations only improve
    your position, come what may. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    CT =====]————- U don’t stop & U don’t quit

  43. iTunes is like the movie “The Field of Dreams” with one exception.

    That field is used the world over for just about anything imaginable.
    baseball diamonds are based on cricket…children play kick and
    whiffle ball in them. If you like baseball, you respect these other
    forms of the game. Heck…some baseball stadiums have hosted some
    of the biggest events of our time…completely outside of the game itself!

    Let’s get one thing straight…either you can appreciate the big picture
    or you just decide you don’t belong. If so, then c’est la vie. ” width=”19″ height=”19″ alt=”cool mad” style=”border:0;” />

    CT ======]———– Ballers, shotcallers…and a certain amount of magic

  44. Seriously, if any of the Record Labels “cuts” ITMS off, then someone should really consider using the Rico Act to prosecute those “Big cigar smoking, Fat Cats” and expose them for what they are once again.

    Racketeers!

    If the market decides that this business model is the best at the moment, then why should the Record Execs be allowed to take us back to the stone age.

    What’s next? CDs that only work on a proprietary CD player bought from each Record Label. Yeah, that’s what I need, 12 different CD players in my car.

    What a bunch of backward-looking, money-grubbing idiots!!!

  45. Defragment our hard drive. Connections over money issues are purely
    a waste of time. If all those commas in your paycheck don’t give you
    occasional fits…somethings wrong. <•>^<@>

    CT =====]———- Commas – Comments – Cements – SweatSwiped…Phew!

  46. Here comes The Hot Stepper, yadayadayada.

    We never missed a beat on the street…don’t hold my horses! ” width=”19″ height=”19″ alt=”mad” style=”border:0;” />

    CT =====]————- Soldiers of fortune

  47. I think that Steve Jobs should make a very public offer to Warner saying that if they’re unhappy with iTMS, then Apple will agree to release them from the contract immediately and stop further sales of there tracks.

    SJ would make it quite clear that this offer does not apply to other companies and their music will remain on iTMS.

    Then we’ll be able to see if Warner has the balls to take their artists away from a market of that size.

  48. I’m always using P2P networks to find music, generally stuff that’s impossible to get on CD because:

    a) It’s been deleted by the Label that ‘owns’ it;
    b) It’s not available in Australia either locally or as an import;
    c) There’s only one or two songs worth having on an album;
    d) It’s only available on CD as part of a mixed DJ set – I want the whole track, not just the middle; or
    e) It was only ever released as a short run on vinyl for DJs.

    If it’s released as a CD Single, I’ll buy it.
    If the whole album is worth the investment, I’ll buy it.
    Or if I can find the track on a compilation CD that has other stuff I like, I’ll buy it.

    Ideally I’d like to legitimately own the tracks I have downloaded, but until we have a way of doing that downunder, I’ll continue ‘stealing’ the music thank you very much.

    Besides, P2P is still great for discovering new music.

    PS If anyone can tell me where I can find the Spoonbenders Mix of 7th Son by Big Noddy, I’d be eternally grateful. Seven years I’ve searched.

  49. Music execs want to play chicken? Sure!

    Let them cut off Apple…
    Apple closes the iTunes Music Store for 24 hours, posts the email addresses of the music CEOs. Let’s see how long they last.

    I’m sure they’ll have fun reading millions of angry emails.

  50. This is why I supported Apple using a few billion to buy a major label. I also advocated Apple spawning an independent label or even spinning of iPod/iTMS as a separate division with the same objective of acquiring music sources independent of the major labels.

    The majors are screaming about losing pricing control. But their real fear is losing all control. And fears have a way of making themselves come true.

  51. This is Warner saber rattling, but they only represent a small portion of all the labels that iTMS currently has on it’s store.

    The other labels, especially the independents, are thrilled to be making oodles of cash.

    Just like Madonna said “Who can afford not to be on iTunes?”

    It’s like this, you start a business and one of the must’s is placing a ad in the local Yellow Pages. Why? Because that’s the first thing people turn to when they want/need something.

    Sure there are “other yellow books” but they compete for attention as they are in the same space as the major Yellow Pages.

    Also because advertising costs money, most businesses can’t afford to be in both, so they pick the biggest as their default first. So it winds up the biggest one stays the biggest.

    Some labels may drop out of iTunes, but most won’t because it’s a market that just can’t be refused. Maybe if the iPods star faded a bit and sales dropped off, but that’s not even happening.

    iTMS makes the labels money, more in fact than pressing cds and all that goes with it.

    Labels are in competition with each other, artists know about iTMS, future artists are going to judge labels based upon how they treat this new market.

    If in the unlikely even too many labels drop out, there will be untold millions switching to AllofMp3.com or Bit-Torrent.

    If you want to learn how easy it is to Bit-Torrent read this.

    http://blog.commonbits.org/2005/05/how_to_start_us.html

    Also learn how to protect yourself here and use file-sharing

    http://www.eff.org/IP/P2P/howto-notgetsued.php

    Remember every computer on the internet has a number assigned to it called a IP address. Paring this number up with logs kept by your ISP leads right to you. Even if you have software that can change the IP or a dynamic IP address. A nice free high speed wireless access point is ideal, somewhere where you can can hide your identity in crowd.

    Probably why war driving is so popular. 😀

  52. Talk about Artists leaving labels makes for nice chest thumping, but isn’t very likely to happen. I wish it were otherwise for their sakes. Talent is held on such tight leashes most owe their label money. They’re little more than indentured servants, really. Very few artists have the clout and financial resources to take on their label and win.

  53. there has to be some discourse at Apple before labels decide to walk out,
    slam the door, and run like hell to satisfy thier pocketbook.

    I guess the Music Video market can’t drive sales…no one knows exactly.

    Don’t let the numbers fool you. ” width=”19″ height=”19″ alt=”cool cheese” style=”border:0;” />

    CT ======]—————- Barcodes Bonsai p-l-e-n-t-y of butter (cash cows)

  54. LOOKS AS THOUGH THE ARTICLE HAS BEEN PULLED.

    Someone somewhere thought it wasn’t such a good idea making such rash threats after all…

    They probably heard about the post above about closing iTunes for 24 hours and posting the email addresses of idiots like Bronfman.

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