Apple has been at odds with the recording industry since the launch of ITunes about the price that they charge for downloads. To be specific, some of the biggest music companies in the world want them to charge more. At least at this point, Steve Jobs says prices will remain where they are.
Jobs, speaking before the opening of the Apple Expo in Paris, said some record companies were pushing for higher prices on the company's iTunes Music Store Web sites.
By cutting out manufacturing and marketing costs, record companies already make more profit by selling a song through iTunes than on CD, Apple's co-founder and CEO said.
"So if they want to raise the prices it just means they're getting a little greedy," he said.
Big music companies are seeking to improve the terms of their deals with Apple as contracts come up for renewal for the U.S. iTunes site, which generally charges 99 cents per song. Prices are typically higher in Europe, Japan and other regions.
Apple launched its new Japanese iTunes site in August without Sony BMG's music catalog as negotiations continued. Observers say the same issues are likely to surface between the two companies as their U.S. contract approaches expiration, and Warner Music Group Corp. is also said to be seeking price increases.
And Jobs quite rightfully points out that it's already tough enough to get people used to getting all the songs they want for free on Kazaa or Limewire or other P2P services to pay 99 cents a song, so raising the price will only make it that much harder.
"We're trying to compete with piracy, we're trying to pull people away from piracy and say, `You can buy these songs legally for a fair price,'" he added. "But if the price goes up a lot, they'll go back to piracy. Then everybody loses."
I'm hard pressed to think of an industry more intent on its own destruction than the music industry. They continue to cling to the dying form of the CD (even going so far as to start putting copy protection on some cD's), and now they're trying to fuck over the one legal download service that's really caught on. Nice job, guys.
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