“Although Apple Inc. announced this month that some songs sold on its market-leading iTunes online service would be available for 69 cents instead of the 99-cent tag Apple had insisted on for years, the change won’t necessarily put more money into the pockets of music lovers,” Ryan Nakashima reports for The Associated Press. “In fact, record companies are the ones that plan to come out ahead.”
“While some songs will be 30 cents cheaper, popular songs likely will be marked up to $1.29. That price breaks a psychological $1 barrier and prepares consumers for a new strategy by labels to bundle songs, videos and other exclusive content together — all in the hopes of reversing years of falling music sales,” Nakashima reports.
MacDailyNews Take: Bundle equals force which equals less choice which, music cartels, equals BitTorrent.
Nakashima continues, “According to NPD analyst Russ Crupnick, the music industry has been faced with a vexing question as fans bought more digital singles but fewer albums: ‘As the album as we know it goes away, how do we replace a $12 or $13 item with something that costs more than 99 cents?'”
MacDailyNews Take: Uh, how about making good music that people want to buy? Versus placing one or two nuggets into a shit sandwich and charging US$15.99 for it?
Nakashima continues, “If the new variable pricing can make several songs packaged together seem like a relative discount, it could finally entice some consumers to pay more… For more than a year, Amazon.com Inc. beat iTunes on price, with song downloads at 79 and 89 cents and most albums between $5.99 and $9.99. While those songs could be transferred seamlessly to iPods with a downloadable program, most consumers haven’t bothered to make the switch.”
“Recording companies noticed. While none would comment on the record for this story, privately they say that Amazon’s inability to become the dominant force in song sales indicates that consumers aren’t considered “price sensitive.” In other words, people are willing to pay more,” Nakashima reports.
Nakashima reports, “Apple has an estimated 80 percent share of the digital download market and about 71 percent of all portable music players sold in the United States.”
Full article here.
MacDailyNews Take: The only question is whether the music cartels will call this
several songs packaged together artificial construct otherwise known as forced bundling an “album” or will they come up with some new name to which their marketing departments can ascribe the term “art?”