Apple inks deal with big four labels: iTunes Music Store prices stay at 99-cents per song

“Apple Computer on Monday revealed it had renewed contracts with the four largest record companies to sell songs through its iTunes digital store at 99 cents each. The agreements came after months of bargaining, and were a defeat for music companies that had been pushing for a variable pricing model,” Joshua Chaffin and Kevin Allison report for The Financial Times. “The music industry’s big four – Universal, Warner Music, EMI and Sony BMG – were not immediately available to comment.”

“The issue has occasionally become acrimonious, with Mr Jobs last year publicly labelling the industry ‘greedy,’ Apple and the music companies declined to comment on the current round of negotiations. However, several music executives privately acknowledge that they have little leverage over Mr Jobs,” Chaffin and Kevin Allison report. “iTunes accounts for about 80-percent of the US digital music market at a time when the record companies are desperate to show shareholders they are replacing declining compact disc sales with new internet revenues. ‘The labels need Apple too much right now,”‘ne record executive said.”

Full article here.

MacDailyNews Take: Game. Set. Match.

(No word, yet, on the length of the contract. More details ASAP.)

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56 Comments

  1. if they want to variable price songs, than they should create there own music downloading system. ohh dam, they did and FAILED! ” width=”19″ height=”19″ alt=”LOL” style=”border:0;” />

  2. since when did Apple serve people with something that’s “good enough” or “okay-ish”

    the eMac
    The one button mouse
    The performa line (it needed to be said again)
    iChat 1.0 (it was basically just AIM with an aqua Skin… its only advantage was that it could integrate with Address Book)
    OS X-X.1
    Apple Works (it was great when it first came out, then got outdated quickly)
    The Power Book Duo (do you remember that one?)
    That one TV commercial for the PowerMac G5

  3. The Duo was awesome, I loved mine!

    eMac was sweet too if you wanted something hard to break or steal. TankMac! And in its day it was actually faster (a little) than the equivalent iMac.

  4. M.Landau – Look, I’m not saying the iTMS downloads are Superbit high-definition quality, but honestly – I don’t know what you’re listening to. I am an audio professional, been in the business for 20 years. And while the 128-bit AAC downloads aren’t perfect, they are a great value for the size and quality.

    I mean, seriously, how long do you think most people will wait to download a song, much less an album? And how much bandwidth do you think Apple can use per song and still keep its few pennies of profit?

    And really – and I’m being careful here, because I am NOT calling you a high-definition audio snob – but seriously, I don’t think most people can tell the difference between an AAC 128 track and a CD unless they compared them side by side. Again, depends somewhat on the track, but with most pop/rock/rap/R&B – it just isn’t likely.

    And I actually play these things over a large sound system in public, as well as in my car, through headphones, etc. While I can hear the occasional artifacts and definition problems, it certainly isn’t to the degree that I consider it unpleasant to listen to.

    If the quality was significantly worse, or the cost to improve it significantly was nominal, then I think that might happen, but I think Apple has hit a very fine balance on this issue. In other words, to 98% of people, it’s not “okay-ish”, it’s “Very good”.

  5. Here’s what really great about the iTunes Music Store: it is a moral middle earth.

    I can buy a tune I don’t already own at 128 mbps, know the artist was compensated, and then go steal it with a free conscience at 192, or whatever I can find.

    Everyone wins.

    The new morality.

  6. While I don’t share the same venomous tone as Mr Landau, I have to agree. It’s time for iTMS to bump the bitrate of the music. Enough people have fat pipes now that it isn’t going to take much longer to download. I think we deserve to have 192 since thats near CD quality.

  7. The great thing about having spent adolescence listening to AC/DC and Floyd at full volume and sticking your head into the speaker cones at GWAR concerts is that 128kbps sounds pretty good.

    Tinnitis fills out the upper ranges.

  8. blucaso, thanks for your honest reply. Unfortunately, I do pretty clearly hear the difference between a CD and an iTMS track. I have different theories about why some people don’t bother tho;

    equipment; if you listen to the iTMS tracks on Apples earbuds, to put it modestly, those things are like somekinda anti-equalizer. No wonder 128kbps is “enough”.

    environment; if you are surrounded by trains, cars, shouting people ie. living the usual bigcity life, the leftovers of the music at 128kbps will probably be enough for most people to sing along. True, 192kbps won’t make a huge difference.

    listening habits; many people seem to digest music as something in the background these days. Again, these “BG/Radio” listeners couldn’t care less about some loss in depth, bass, treble whatever. Okay, this goes against the earbud folks…but at least it’s a tendency.

    However, I just happen to love the clarity of the music I listen to. No matter what style, earbuds (real ones) or speakers.

    Since you asked I’ll name some of the tracks as of the last 12hrs in my playlist…ripped at 192kbps, thank gawd.

    Squarepusher – some tracks from Go Plastic, Jamie Lidell – Multiply Album, Elvis Costello – The Juliet Letters,Björk, Miles Davis, Prince, Esquivel, A.C. Jobim – plus lotsa other oddities. On a sidenote…this playlist makes me wonder if I’m sane. Oh well.

    P.S.

    In case someone has been living in a cave or equal – do check out the coolest music invention not being part (unfortunately) of the iTunes player.

    pandora.com

  9. If apple can feed a coupla million osx users with that latest 50+ mb download/update for free how come they cannot feed a coupla million people with a 5mb file that was originally 3mb with shitty compression? Im just askin. The people in Sweden have 100mbit which is amazing compared to most other countrys but isnt 2-8mbit pretty much what most people have these days anyways? who cares about an additional 10 secs dl time?

  10. BITRATE BUMP:

    Should Apple move up to 192 or 256? Yes and no.

    Yes for the quality wanting audiofile. But most of these people still buy discs and import them in high quality compression or Apple Lossless…

    And how can anyone argue with Apple’s success at 128 bit and iPod sales?

    From Apple’s marketing perspective, when a true competitor, such as a popular Windows compatible player, or highly successful online store for Windows players hits the market, then Apple can strike with 256 quality music.

    Why leave that on the table now?

    Apple will more than likely play this card only when a competitor – such as URGE – hits the market. BUT, only if URGE or the like is successful. If not, why do this?

    Lastly, larger files lowers the marketing ability of how many songs the iPod can hold – and while we know 90% of the people owning 60 GB iPods only have 120 songs on then, it is perception that counts.

    So Apple will only move to a higher quality file compression when and if they must in order to keep or grow market share – and not until then.

    As for consumers – if you want great quality sounding music, go to Costco, get your CD’s and rip them in perfect transfer with Apple lossless.

  11. QUALITY BUMP:

    Should Apple add more features to OSX? Yes and no.

    Yes for the quality wanting ueber-operator. But most of these people still buy 3rd party add-ons, utilities, apps – or even build their in-house solutions.

    And how can anyone argue with Apple’s success with OSX?

    From Apple’s marketing perspective, when a true competitor, such as Microsoft Windows Vista hits the market, then Apple can strike with more features.

    Why leave that on the table now?

    Apple will more than likely play this card only when a competitor – such as VISTA – hits the market. BUT, only if VISTA or the like is successful. If not, why do this?

    Lastly, more features lowers the marketing ability of how many utilities and extras the end-user really needs to learn – and while we know 90% of the people owning a Mac only use a maximum of 12 apps, it is perception that counts.

    So Apple will only add more utilities, i-apps and whatnot when and if they must in order to keep or grow market share – and not until then.

    As for consumers – if you want great applications or utilities missing in your current OS, go elsewhere, get your apps and use them in Apple’s currently perfect OS.

  12. Thanks, M.Landau, for your gracious reply.

    And leeloo, I didn’t say I couldn’t hear the difference, but I did say that the difference didn’t bother me sufficiently to make the music unlistenable or unpleasant.

    And my recent downloads from the iTunes Music store include the soundtrack to Grizzly Man featuring the great Richard Thompson, Bruce Cockburn’s acoustic collection “Speechless”, Andrew Bird’s marvellous albums “The Swimming Hour” and “The Mysterious Production of Eggs”, Son Volt “Okemah and the Melody of Riot”, George Winston’s “December”, Madeleine Peyroux’s incredible “Dreamland”, and the Getz/Gilberto album (also featuring the above-mentioned Antonio Carlos Jobim, for synchronicity and closure of the musical loop!).

    Would I like 192 or 256? Sure. Would I wait for the downloads? Sure I would. I’m just saying I can see arguments against it too. Frankly, I’m sometimes amazed at how bad the compression on DVD’s looks, and I’m definitely NOT a videophile. But the color banding is so distracting on some occasions that it makes me cringe.

    Also, I know that I’m paying for a convenience and that I’m not usually listening in a dedicated environment. If I’m in the car, or at the gym using crappy earbuds, I’m just taking along the music and the noise will definitely override and possible quality problems.

    I do also find it ironic that the kind of comments I hear now about the poor quality if iTMS tracks mirrors the same comments I remember in 1985 (and 1986, 1987, 1988, 1989…) about how CD’s didn’t sound as good as vinyl. Well maybe in an ideal, perfect environment with pristine virgin vinyl being tracked by a brand new top-of-the-line needle in a scientific clean room… once. But otherwise, for reliability and repeated listening, the CD was obviously a big step forward. On the other hand, and maybe I’m just loony, there’s times when I really actually enjoy old records and their crackle, warmth, distortion, the whole works. Especially old 78’s, but there you go. There’s no accounting for taste.

    I think maybe there’s a 3rd-party market for a niche “quality” download provider, the same as todays “Superbit” CD’s and yesterday’s vinyl “Gold remasters” were. But the fact is, it remains to be seen if people would pay a premium (and if so, how much) for that service, or if someone (including Apple) would bump up the quality for the same price.

  13. M Landau,, give it a rest. Buy your damn CDs and shut the hell up. Are you a wine snob too?

    and he dictated them to benefit Apple

    And how exactly is this to benefit Apple? With higher prices, Apple would get more money from their cut. Dumbass.

  14. Amen to that, neomonkey.

    I picture Landau zipping around the house dusting things and re-straightening pictures, pausing only to scream at the neighborhood kids outside to shut up with their infernal playing.

  15. M Landau,

    I agree.
    You’re not an audio snob. You appreciate quality.

    The people who get enraged over posts like yours have got used to listening to music in poor quality.
    Paradoxically, their attitude reminds me of many PC users who defend the Microsoft world.
    They know what they like and they like what they know and sometimes get aggressive (perhaps understandably) when it’s suggested that what they like and know is second-rate.

    As for you blucaso … what’s your profession again? I just can’t believe it.

    I’ve done the test on my iPod with good quality earphones.
    Two recordings of ‘Take Five’ one in Apple Lossless and the other in ‘128’ quality and the same test with a short piece of classical music.
    The difference is huge.
    There is nothing subtle about the difference in quality.
    One is good the other is second rate.

    Apart from the ‘test’ pieces, I’ve only got music in Apple Lossless on the iPod and although it means much less music and much reduced battery life (about two and a quarter hours), it’s worth it.

    I will not buy from iTunes Store (again) until they improve the quality.
    My money goes on CD’s.
    A much better deal.

  16. All this talk about digital music bit rate snobbism is funny.

    CD quality?

    BS

    Clean vinyl whips digital every day!!

    I set my daughter down & played her a virgin vinyl japanese import record & she came away stunned. The ambient qualities of the music are subtle, but open up the room with real sonic waves.

    Sound is analog, Digital is little sonic samples. Ambience is lost in even the best digital sampling. I read that higher sample rates will erase this difference, but so far not.

    Digital music is a compromise at its best. When laser printed type came about, the old timers scoffed at the ragged dots in computer type. true, but people can accept lower rez pretty easily & the economics drives the process so that now all type is digital and we accept it.

    The best digital type will not soon equal letter press in sharpness, but no one can afford to set type that’s not digital. The same goes for Music.

    So don’t tell me about the “quality” of higher sampling rates. Its all a digital compromise driven by convenience & price.

    I listen to lots of MP3s & the quality is acceptable, but if I want to hear amazing sound quality I dust off my turntable & put on an analog sound disk.

    And besides, I’ve never had to worry that my vinyl records are listening to me , installing rootkits & contacting the mothership.

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