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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85 Comments

  1. 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.

  2. 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.

  3. 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!

  4. [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?

  5. 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

  6. 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.

  7. 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.

  8. 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;” />

  9. 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.

  10. 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.

  11. 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!

  12. 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.

  13.  
    “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.”
     

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