I think Jobs is right on the money when it comes to raising music downloading prices. I think ITunes may have saved the music industry from a death spiral and now they want to try to crash the plane again. Even with the low price of $.99 cents per song people are still pirating music. I think an even larger number will go back to pirating if they are charged more.
It seems that $.99 is the absolute ceiling per song. People are finally being conditioned to think that free is not the default price of music. They are now thinking the default price is $.99 or lower. The hassle of piracy will look better each cent charged over what they have been conditioned to pay. I mean free is much better then $1.50 or whatever they jack the price to. This guy is totally clueless:
Sony BMG CEO Andrew Lack said at a Reuters gathering earlier this year that Apple is benefiting from two revenue streams, sales of both the iPod devices and song downloads, while the music industry has only one.
"I'm not making any money on this," he said. "I've got one revenue stream that a proctologist would have a hard time analyzing. It's not pretty."
Umm, then get your parent company to make an IPod killer then. If they don't know how then you will have to make due with that one revenue stream. They have already cranked album prices to such a level that it is cheaper to buy the songs from ITunes. Now they want to choke off the only profitable revenue stream they have left. I think these guys just want to be the next airline industry. Just counting the days until they all go bankrupt.
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