Valleywag
Why is Apple suddenly in talks with record labels about bundling an unlimited music plan with new iPods, after resisting such a move for years? Steve Jobs has scoffed at music subscriptions in the past, saying customers want to "own their music." Never take Steve at his word: For years, he shot down the idea of iPods with video or an Apple-branded cell phone — until he made them happen. The same is about to happen for music subscriptions, I suspect — but not because Jobs has suddenly changed his mind about consumers' tastes.
No, this is about the twisted dynamics of the music industry. Selling unprotected MP3s is all the rage now, even though label executives have insisted for years on copy-protected formats, like the kind Apple sells through iTunes. Forget Jobs's propaganda about Apple wanting to "free" music from copy protection. He doesn't care one bit about the digital-rights management software, or DRM, that record labels insist on. And he knows that most consumers don't care about the issue. He just wants to sell iPods, and his customers just want to buy them.
What Jobs does care about is other music stores having something Apple doesn't. The labels have been favoring competitors like Amazon.com with licenses for MP3 files — because they now fear Apple more than they fear piracy. And Jobs knows that DRM doesn't work to stop piracy, anyway. But what it does do is lock music to devices, because hardware manufacturers can't risk breaking the DMCA's circumvention provisions.
So Apple needs a new hook to win the labels back. Selling subscription music would allow Apple to lock down its music once more. According to reports of the proposals Apple and the labels are considering, iPod buyers would pay anywhere from $20 to $100 to get all the music they can download. Ah, but they'd have to download it from iTunes, onto an iPod.
Bundling music would give Apple a huge edge over the competition. Nokia's also proposing an all-you-can-hear music plan. But for all of Nokia's talk about cell phones replacing MP3 players, only 7 percent of cell-phone owners listen to music on their handsets. Amazon.com could try a subscription plan, but it's hard to see how it would make money, since it doesn't have the iPod's hefty profit margins.
Jobs comes out on top, again. Apple sells more iPods by giving the record labels what they want — copy protection and revenue — without having to share the iPod's profits. The compliant tech press corps will hail his plan as genius, forgetting he ever said anything about consumers wanting to own their music. The losers here are the musicians. Apple and the labels will divvy up subscription revenues, and the artists' cut will likely be smaller than what they'd make off of by-the-song sales. But since when has anyone asked their opinion about how to run the music business?
(Photo by AP/Paul Sakuma)
Comments
And this is the company that is portrayed as being "Good," while Microsoft is "Evil." Apple is just a more monopolistic, less successful combination of Microsoft and Dell.
I converted to mac in '96. It was neat belonging to the mac group back then.
Now, the company will squeeze every penny out of you and has really let its fans down. Forcing users to use their proprietary stuff is uncool. I am not going to spend $100+ for a stupid webcam. The problem is, mac doesn't work with the other brands. This is one example of many.
I like their stuff. I hope another company comes around to bitch slap apple though. It is becoming like Microsoft and is becoming too full of itself.
@Fidel on the Roof: is it even possible to buy a mac today that doesnt have an iSight built in? Besides the Mac Pro- and if you're dropping that cash, you really have no place to complain about adding it onto the order.
I finally broke down week before last and bought my first iPod and to be honest i'm kinda ready to sell it. I'm not impressed with iTunes or the iPod really.
The cat is out of the bag now and DRM Free music is all the rage now. I see this as being another mediocre service from apple, nothing more.
@matto: Probably not. I haven't been in the market for 2 years. My machine is running just fine. I just can't plug a webcam into my computer. I think I should be able to without shelling out $100k for just a camera. Logitech will more than suffice.
But spending that kind of money, there really shouldn't be any "options" to add. Making 50% on every iPod since the first generation is so juicy... why continue to screw over the computer crowd? I digress...
Anyway, I'm a reluctant mac guy.
@Technick: Thank you for proving my point.
Yay! You're one of the 5 percent of people who care about DRM! Woohoo!
One more reason for an artist to STEER CLEAR OF RECORD CONTRACTS. You think their accounting is shady NOW, just wait until you're an artist trying to figure out what you're owed!
@sample032: The bigger the company gets, the easier it is to become evil. It is almost like it is inevitable.
Comment on Why Steve Jobs wants to sell you a music subscription I would say that El Jobso is worried about the $5 internet music surcharge idea that's gaining so much press of late. Should any form of it ever come to pass, iTunes is closed. That certainly would make Steve backpedal.
I'm sorry, but I get most of my MP3's for free *cough* and my 3rd gen iPod still works perfect, not to mention my iPhone. So yeah, maybe I'm not a target market *sigh*, though I think new ipod owners might be. Talk about ground level strategies. At least there's only one way to go after hitting bottom. You can blame that one a new iPod every year plan, plus I thought the iTouch was the mover shaker for the new Apple scheme of things. God knows it's not the new Mac Pros or MB Airs... :||
Maybe you people could cease reiterating the claim that a Webcam costs $100,000.
I buy my music via half.com and rip the MP3s into itunes, and sell the CDs back if I decide not to keep them.
This isn't hard - why don't most people do this? do they want instant gratification that bad?
It would be nice if Steve added me to his My Space page
Lily S.
[www.myspace.com]
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