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  1. #1
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    Warner Music Exec Threatens To Cutoff Apple

    Quote Originally Posted by PC Pro: News
    Warner chief threatens to scalp iTunes

    A Warner Music executive has threatened to cut off Apple if Steve Jobs continues to refuse to give ground on iTunes Music Store pricing.

    Digital strategy chief Michael Nash said during a discussion at a wireless telecoms conference that the music industry has let Apple get too much power in the digital downloads market.

    'What if Jobs says 39 cents or 29 cents per download - what then?,' he said. 'The industry can say, OK we'll cut him off - very few people buy music from digital downloads.'

    He added that he is sure that the Apple CEO would find another way to sell iPods.

    Nash's comments echoes those made last week by Warner CEO Edgar Bronfman, who called for Apple to adopt variable pricing and share out revenues from iPod sales.

    The record companies' position is based on the dubious argument that digital downloads sell iPods. In fact all the evidence points to the opposite: that iPod sales have driven demand for downloads. The vast majority of digital music sales are made by iPod owners. Cut off Apple and the labels digital sales will slump.

    'The iPod drives people to iTunes, not the other way around,' Michael Gartenberg of Jupiter Research told Business Week.

    In the longer term music bosses (and Apple's rivals) are clinging the idea that the iPod's dominance of the MP3 player market cannot go on forever. But such is Apple's overwhelming market superiority that other device manufacturers are complaining that they cannot get hold of flash memory because Apple is buying up the entire supply for its iPod nano.

    A Korean news site reports that Apple is the only customer for Samsung's new MLC flash memory, which is cheaper and more efficiently produced. And because Apple is buying in much greater bulk than anyone else it enjoys further price benefits.

    'It's true that the company that has the largest market will have the edge,' said Hwang Chang-kyu, CEO of Samsung's semiconductor division. 'Buying 100 units and buying one can't be same.'

    The record companies cannot even be sure, as they once were, that music on mobiles will break Apple's dominance, now that the first of the major digital music services to offer phone support is iTunes. Nor have music subscription services from the likes of Napster and Real proved attractive; people, it seems, still like to own their music.

    For the time being and the forseeable future, Apple appears to hold all the cards. Single-price downloads will be around for a while yet.

    Simon Aughton
    Original Link: http://www.pcpro.co.uk/news/78119/wa...lp-itunes.html
    EDIT: Seems the link now requires registration.

    --

    The RIAA is looking for control over iTunes pricing, and it seems they are serious. The RIAA wants iTunes to use a variable pricing skeam, no more flat fee. As they said in the following article last week:

    http://www.redherring.com/Article.as...+Back+at+Apple

    “He [Warner Music Group CEO Edgar Bronfman Jr.] called Apple’s across-the-board $0.99-per-song charge unfair.”

    “Not all songs are created equal—not all time periods are created equal. We want, and will insist upon having, variable pricing.”

    “Some songs should be $0.99 and some songs should be more. I don’t want to give anyone the impression that $0.99 is a thing of the past.”



    Of course the last one is the most appropriate, obviously nothing will be below $0.99 as that would cut into profit margins. However, be assured that raising the price is “fair”.
    Last edited by Alastor; 10-01-2005 at 08:13 AM.
    "In theory, theory and practice are the same. In practice, they are not."

  2. #2
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    what crawled up his ass and died?
    He came dancing across the water
    With his galleons and guns
    Looking for the new world
    In that palace in the sun
    On the shore lay Montezuma
    With his cocoa leaves and pearls

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    Edgar Bronfman Jr. is known to be THE number one nutjob in the industry. They also want a piece of the iPod sales revenue. How retarded is that ? How can a company seriously claim such a thing without being laughed at ?

    It's not the RIAA that wants a flat fee, it's Bronfman Jr. who wants it. FYI: the RIAA has nothing to say outside of the USA...

    Anyway, this probably won't fly but Steve has to keep his ego under control in this matter.

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    Quote Originally Posted by Lagonda
    Edgar Bronfman Jr. is known to be THE number one nutjob in the industry. They also want a piece of the iPod sales revenue. How retarded is that ? How can a company seriously claim such a thing without being laughed at ?
    Not a lot different to the concept that blank tapes carried a portion of revenue to the music industry in the 70s !!!!
    "A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'

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    Quote Originally Posted by Matra et Alpine
    Not a lot different to the concept that blank tapes carried a portion of revenue to the music industry in the 70s !!!!
    Isn't that still true, now they get a portion of blank CD revenue?
    "In theory, theory and practice are the same. In practice, they are not."

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    Quote Originally Posted by Matra et Alpine
    Not a lot different to the concept that blank tapes carried a portion of revenue to the music industry in the 70s !!!!
    Yeah well the point is, they can't claim a portion, legally. If the blank tape/ipod/cd makers agree to pay up to the record companies then it's their problem. But, record companies can't legally claim that they HAVE to have a portion of the iPod sales. And Bronfman Jr. claims they should, hence why he is the industry's number one moron.

  7. #7
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    Quote Originally Posted by Lagonda
    Yeah well the point is, they can't claim a portion, legally. If the blank tape/ipod/cd makers agree to pay up to the record companies then it's their problem. But, record companies can't legally claim that they HAVE to have a portion of the iPod sales. And Bronfman Jr. claims they should, hence why he is the industry's number one moron.
    I understood that he ais trying to get it changed so that they can.
    Clearly they can't do it without aggreement as that would be theft !!!

    What he is giong through is EXACTLY what the industry did over cassette tapes. Argued back and forth about the need to pretect "music industry" and the compromised on a reduced fee.

    THAT is the "point"
    "A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'

  8. #8
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    how can they expect a cut from the sale of a device that might not have anything to do with them?

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    Quote Originally Posted by Jakg
    how can they expect a cut from the sale of a device that might not have anything to do with them?
    That's the entire point. They can't expect that but Bronfman Jr. claims they are entitled to it because he thinks that it is their music that drives the iPod sales. Which is a blatant lie and even if it did drive the sales, they wouldn't get anything. If you want revenue from MP3 players than build/sell your own and try to outsell the iPod. Which isn't going to happen.

    This is just a case of public extorsion by a major corp.

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    Quote Originally Posted by Lagonda
    That's the entire point. They can't expect that but Bronfman Jr. claims they are entitled to it because he thinks that it is their music that drives the iPod sales. Which is a blatant lie and even if it did drive the sales, they wouldn't get anything. If you want revenue from MP3 players than build/sell your own and try to outsell the iPod. Which isn't going to happen.

    This is just a case of public extorsion by a major corp.
    Do car companies get a portion of oil companies' revenue? What about plastics manufacturers? After all, it's their products that drive the sales of oil...

    A little nuts if you ask me.

  11. #11
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    i see...

  12. #12
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    Well it doesn't affect me since the I-tunes store isn't in NZ. Still, by reading this, I know that someone is a bit of a fruit loop. Man I wish I-tunes was in NZ, there are some albums i really want that are on it.

  13. #13
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    its not a store, its a software you get when you buy an ipod
    He came dancing across the water
    With his galleons and guns
    Looking for the new world
    In that palace in the sun
    On the shore lay Montezuma
    With his cocoa leaves and pearls

  14. #14
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    Quote Originally Posted by my porsche
    its not a store, its a software you get when you buy an ipod
    Yeah I know, I use i-tunes as my music player despite not owning an i-pod. I meant the i-tunes music store.

  15. #15
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    Edgar Bronfman Jr
    ^^
    he's on crack

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