EMI chairman says Apple’s iTunes Music Store’s single 99-cent song price doesn’t deter piracy

“EMI Group PLC Chairman Eric Nicoli Tuesday rebuffed Apple Computer Inc.’s assertion that a single price for songs sold over the Internet helps prevent piracy in the music industry,” MarketWatch reports. ‘I’m not persuaded by the argument that a single price deters piracy,’ Nicoli said at a news conference. ‘I’m not persuaded of the fact that a lower price deters piracy. What I am persuaded of is that making music more convenient and better value is a deterrent to piracy.’ Nicoli was responding to comments from Apple Chief Executive Steve Jobs who last month called music companies greedy for seeking higher prices for downloads and who argued that this would encourage piracy.”

Full article here.

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Try raising the price and let’s see how well that deters piracy.

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41 Comments

  1. MacDailyNews Take: Try raising the price and let’s see how well that deters piracy.

    Exactly.

    ‘What I am persuaded of is that making music more convenient and better value is a deterrent to piracy.’ So this means…..? On the one hand, you slap Apple, on the other, you say it’s good? More convenient and a better value? I don’t get it?

    Are you suggesting subscriptions????

  2. To a degree he is right. Single pricing vs. multi-pricing doens’t deter piracy. If iTMS had tracks ranging from 99 cents down to say 69 cents piracy would not increase. Multiple pricing from 99cents up to whatever they want for current/popular tracks would either encourage piracy or in my case just deter me from purchasing. I’m used to a buck now, it will be hard to pay more.

  3. I would like to see the results of a study which would show just how much actual money the average music “artist” (these days) receive from the sales of CDs … as opposed to the money they receive from live performances and the sales of T-Shirts, buttons, et al..

    I bet todays artists are being gouged more by the record companies than they are by the iTMS…

    Wasn’t it the Greatful Dead who encouraged the “pirating” of their music ?? …. I doubt their record sales suffered much

    MDN MW “data” … (Wasnt he on Star Trek ?) ” width=”19″ height=”19″ alt=”LOL” style=”border:0;” />

  4. Convenience and value deters pricing. Right on. Thing is, that given the convenience of iTMS, I find $0.99 to be the right value. Lower prices would really be a greater value, but higher prices? I don’t think I would be willing to pay $1.19 or $1.49 for a single. That’s too much. I would rather p2p it. Now for a video, lyrics, etc, perhaps…but then my value is increasing commiserate with the price now isn’t it?

    Plus, what Dumb-A doesn’t remember is that this is a new medium (still) and there should be some price consideration for the fact that if Apple stops making iPods, I can’t lossessly transfer my collection to another pocket media player.

    MDN word: attack

  5. Mr. Nicoli, please understand that there is a difference between “deter” and “prevent”. A padlock on my door might not prevent theft, but it probably does deter it. Or, as my father used to say, locks keep out the honest folks.

  6. That is one ridiculous stamement obviously made by someone who NEVER pays for music and probably doesn’t even care about music very much.

    iTunes has made music more convenient and digital music sales have tripled according to latest reports. It’s been said before, can’t be said enough, if they want variable pricing then have .99 as the ceiling and go down from there.

    Greed. Pure greed.

  7. Funny,

    Would you believe I read this article mere moments after downloading three songs. I was planning on using a P2P but instead thought it’s be easier and quicker to use iTunes and paid the $2.97.

    These record companies need to realize something before the Internet starts to kill them slowly again.

    “Sometimes it’s difficult to see the real world below when you sit up so high in an ivory tower.”

  8. “….I’m not persuaded of the fact that a lower price deters piracy. What I am persuaded of is that making music more convenient and better value is a deterrent to piracy….”

    which, IMHO, flies in the face of gobs of historic evidence from any economic sector that has spawned a black market….
    *cigarettes
    *booze
    *currency, etc

    consumer piracy and wide-spread contefeiting is a black market developed market response to preceived low value/high prices in a tightly controlled market coupled with a technological change the industry didn’t respond to…

    the question for this guy is what “value add” could the industry possible give to the product that could justify higher prices and overcome the convenience of itunes or piracy and the lower prices?

    none that I can think of……

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