Zune Thoughts: iTunes - Pay More Get Less

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Friday, May 9, 2008

iTunes - Pay More Get Less

Posted by Chris Gohlke in "Digital Home Articles & Resources" @ 11:00 PM

http://weblog.raganwald.com/2008/05...han-amazon.html

"For example, Bach: Goldberg Variations, BWV 988 on 256-bit DRM-free MP3 is just $9.99 from Amazon. The same album is also $9.99 from Apple, but you get DRM. And there are tons of tracks on Amazon that are actually less expensive than on iTMS, so you get better music for less money without the DRM hassle. So is Apple screwing the customers? In a word, no. The reason you can find more music on Amazon at a lower price is that the Record Labels want it that way. Do you think they charge Apple and Amazon the same price for each track and Apple simply charges you more and pockets the difference as a higher markup? The labels would like you to think that, but they actually charge Amazon less for each track, and that’s how Amazon can charge you less."

There is some interesting logic to this article. There were no references, so I have no idea if the labels actually sell to Amazon for less than Apple. I certainly follow that the record companies want Amazon in the game to keep Apple in check. However, I disagree that this will let the record labels take back control AND allow them to keep DRM. I think at this point they have to choose either/or. If they want to keep DRM in place, then they are stuck with Apple calling the shots. If they are willing to go DRM free, then competition can at least keep Apple in check .

Tags: Apple, Amazon, MP3

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