According to many recording industry sources, the recent price hikes on iTunes haven’t been much of a benefit to the people that wanted them the most – the record labels.
Digital Music News reported that the major labels have seen a drop in both sales and profits from iTunes since the new pricing structure went into effect. The price on most songs on iTunes jumped by 30 cents. There was supposed to be many songs that were reduced in price also, but according to many sources, the hoped for back catalog track price reductions did not materialize and any search for 69-cent songs was largely an effort in futility. This made more than a few people doubly upset as there was ample evidence of $1.29 songs and hardly any lower priced music.
The site techdirt has no love for the record labels and puts the entire blame on their poor business practices. They state that plenty of people predicted that sales would drop with higher prices and they feel that the executives at the labels should have been able to accurately predict how much.
Techdirt has no love for the music label executives. The following quote from their article is strong, but seems to ring true.
Sometimes when we question the motives of entertainment industry execs, people say that we’re being unfair in questioning the “intelligence” behind those moves. We’re told over and over again that industry execs are much smarter than we are, and they know better than we do. And yet, almost everything that has been predicted has come true… over and over again. The industry keeps doing things that at least make it appear that it has trouble understanding the long-term implications of almost every move it makes. Perhaps they are smart. And perhaps it’s all part of some grand plan. But, to date, the only evidence we’ve seen is that nearly every move made by the industry has backfired, and resulted in less revenue coming in, while those who predicted alternative and embraced alternative business models are finding tremendous success. At what point do we stop assuming that the legacy industry execs “are smarter” and recognize that they seem too focused on the old way of doing business to recognize how to competently change course?
So, what has happened to the buyers? Chances are they are still downloading, but have turned to less complicated sites to get their music.
A check of Clay Aiken on iTunes shows that all of his songs have stayed at 99 cents. A fifteen minute hunt at the iTunes store did not reveal any 69 cents songs.
This is a very interesting topic. The music industry is shooting itself in the foot.
They’re increasing the cost of music by 30% to the public who actually pays cash while hundreds of thousands of people continue to swap CD quality songs via file sharing for free. I liken it to a store in which you have a hundred people standing in line with a budget for buying so they buy less, while thousands of people walk out of the store with millions of songs stolen. Until they find a way to stop the free sharing of CD quality songs and prosecute those who do it, the labels, artists, producers and musicians will continue to lose.
Instead, they shut down sites with poor quality sound that could be used for marketing purposes and charge people who actually pay for their songs more so they buy less.
The music industry is really in trouble…
I don’t know what the answer is, and don’t know how it can be corrected. I feel bad for the artists..cause they seem to be the ones that lose the most…
Sally….you have hit the nail on the head with your post…something has to be done… I’m sure someone will solve this problem.
Great article CANN….they really are in trouble…that is obvious.
Hugs,
Judy
I try to never buy off iTunes – it is very limiting and the digital quality is lower.
I ALWAYS purchase music – but I’m an Amazon girl. I’ll purchase off iTunes (like the Milton Green Kidney song) when I absolutely have to.
The record industry needs to regroup and rethink. However, in order to do that, they would have to stop being so arrogant. I don’t see that happening very soon.
Nice article CANN!!!
To the labels it is all about $ they can make off the backs of the artists, songwriters, and others including consumers. Articles I’ve read have discussed how out of the loop the old execs are in trying to hang on to the old models of selling music.
In addition the labels want to choose who America listens to putting huge $ behind the people they choose rather than releasing music of many and letting America decide what to buy.
I agree…the music industry is in trouble. Its their own fault…I never listen to any of the so-called new music. I know the only reason they play the music, is if you pay up front. Then they go up on the prices…so dumb!!
As more and more freeloaders…er…downloaders…get successfully sued by record companies ( as one fellow did to the tune of $675,000.00), the numbers of freebies to swappers may start to dry up. In terms of dollars, paying $.99-$1.29 per song is still cheaper than spending $15.00-$20.00 for an entire album when you only like one or two songs. Right? In the case of Clay, though, only the entire album will do.lolol
IMHO, all it’s going to take for Clay to become an ‘overnight sensation’…again…is ONE song…the ‘right’ song. The world needs optimism so the song has to be uplifting and vibrant and sexy and ….did I say?..yep, I did…it has to have a dash of sexiness about it that stays in the mind. If Decca manages to find Clay THAT song, they’ll recoup all the money I hope they spend promoting it and Clay. I can visualize him gyrating (moving pleasantly…lol) to something like ‘Changing My Life For You’ …Let’s cross our fingers they spend a lot of time choosing the right song and …even make a bonafide video to accompany it. Clay deserves the whole star treatment.