August 27 2005

Greedy music companies

It seems the music companies are unhappy with the $.99 Apple is charging through their iTunes music store. This has been rumored for awhile, but now it is looking like there may be a showdown coming up. The music companies want the price raised, but seeing as they currently get a rumored $.70 for the $.99 price, this is just pure greed as always.

I chose a recent album to use as my example, let’s take a look at Six Feet Under, Vol. 2: Everything Ends. has it listed for $13.49, has it for $13.99 and iTunes has it for $12.99. 13 songs on the album, meaning that the record company takes home about $9.10 of the $12.99 from iTunes.

So the record companies are saying they need more than this? Are they going to try to convince us (the consumers) that they are making less via this method than by producing a physical CD copy? Let’s think for about two seconds folks…bull! No manufacturing cost, no labor cost, no shipping cost, no returns, no unsold inventory…the record companies, as always, are just being greedy. They are making a far higher profit margin on digital downloads than they ever would on physical CDs, and now they want more and more from us.

Have I mentined lately how much I love

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Music Science & Technology