03 October 2005

Apple Computer vs. the Record Companies

There's been a series of articles where Apple and the record companies (some of them) have been disputing the amount of money that Apple charges for songs that are downloaded from iTunes. Basically, some of the record companies want to raise the price that Apple charges for songs. I think that the record companies need to read Aesop's Fables. In particular, the fable of the Golden Goose. (One sentence synopsis of the Golden Goose: Goose lays one golden egg a day, farmer likes this, and wants more, so he kills the golden goose to get all the eggs out of her, but there are no more left, and he is left with a dead golden goose)
According to this article in Time magazine:
the record companies get 65 cents per song that they sell on iTunes. This is pure profit for them. They did not have to manufacture the CD, ship the CD to the record store, or produce the plastic needed for the case/CD, or produce the album art (other than to transmit to Apple
a computer file that has the image of the cover on it) They want to raise the price for some songs, and claim that they will lower the prices for others. I'll believe the lower prices when I see them. My big concern is that I think that the record companies make too much money as it is. I think that it is important to reward artists, but the problem is that much of the money does not go to artists, but goes to the record companies.
for information on this.
I think that the record companies should leave iTunes alone.

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