Warner Threatens to Pull Plug on Apple

FormFactorFormFactor At the core of forgotten
edited October 2005 in Science & Tech
PC Pro is reporting that a Warner Music executive has threatened to cut Apple off if Steve Jobs continues to refuse changes in iTunes Music Store pricing.

Record companies argue that digital downloads sell iPods. But in reality, all evidence points to the opposite: that iPod sales have driven demand for downloads. The vast majority of digital music sales are made by iPod owners. Cut off Apple and the labels digital sales will slump.
'The iPod drives people to iTunes, not the other way around,' Michael Gartenberg of Jupiter Research told Business Week.
Source: PC Pro

Comments

  • KwitkoKwitko Sheriff of Banning (Retired) By the thing near the stuff Icrontian
    edited September 2005
    Are the damn record companies never happy? They get $0.70 from each download without having to lift a damn finger. I'll bet dollars to donuts that the artists don't see their fair share of that money.

    John Dvorak wrote about this in the latest issue of PC Mag. Now I think most of the time he's gone off the deep end, but what he said about this very issue caught my eye.

    http://www.pcmag.com/article2/0,1895,1862166,00.asp
  • primesuspectprimesuspect Beepin n' Boopin Detroit, MI Icrontian
    edited September 2005
    I say "go for it"

    I bet The Steve would say the same thing.
  • GargGarg Purveyor of Lincoln Nightmares Icrontian
    edited September 2005
    Soon, we won't need record companies. Some artists are already gaining a following with only touring and an online presence.

    Soon... :D
  • kanezfankanezfan sunny south florida Icrontian
    edited September 2005
    it's stuff like this that makes me want to download every single album on the planet...
  • GrayFoxGrayFox /dev/urandom Member
    edited September 2005
    kanezfan wrote:
    it's stuff like this that makes me want to download every single album on the planet...

    If you were canadian you could.
  • JengoJengo Pasco, WA | USA
    edited September 2005
    Ha, How ridiculous.

    I hope you are right Gargoyle, i say forget record companies, just do what Harvey Danger is doing right now, they released their new album on the internet for Free, Forget stupid record companies. If people love your music they will go watch you. Plus you would be able to keep all the money made from your own concerts (once you pay the people who helped set up and stuff of course) but that is a real smart idea Gargoyle. And i applaud Artists who realize this already, they dont need record companies anymore, most record companies are thiefs anyway.

    Go Harvey Danger!!
    Read more about getting their ablum for free HERE
    Its a good album BTW, at least give it a listen!
  • danball1976danball1976 Wichita Falls, TX
    edited October 2005
    There was one country music singer that created his own label (Toby Kieth I think), and he makes tons more money than he ever did with his original label.
  • kanezfankanezfan sunny south florida Icrontian
    edited October 2005
    GrayFox wrote:
    If you were canadian you could.
    canadian eh? what aboot those canadians? i was born in france and now i'm an US citizen, and i think i've downloaded just as much as any canadian out there. what do you think aboot that eh?
  • danball1976danball1976 Wichita Falls, TX
    edited October 2005
    Arrgghhh... that "aboot" is soooo annoying. Someone in my shop when I was in the Air Force who was from Michigan liked to do that all that time.
  • kanezfankanezfan sunny south florida Icrontian
    edited October 2005
    Blame Canada!
  • primesuspectprimesuspect Beepin n' Boopin Detroit, MI Icrontian
    edited October 2005
    what aboot michigan, eh?
  • kanezfankanezfan sunny south florida Icrontian
    edited October 2005
    wail, let's nooot forget minnesoooooota while we're at it eh?
  • airbornflghtairbornflght Houston, TX Icrontian
    edited October 2005
    hmmm...if i was steve, i would say..f u, you can have your music and see the record companies come crawling back.
  • djstubbsdjstubbs NJ
    edited October 2005
    Record companies are the greediest group of conservatives on the planet.

    Have you guys seen Tommy Mottolas house??
  • ThraxThrax 🐌 Austin, TX Icrontian
    edited October 2005
    djstubbs wrote:
    Record companies are the greediest group of conservatives on the planet.

    Have you guys seen Tommy Mottolas house??

    Can we not make this political? Thanks. :rolleyes:
  • djstubbsdjstubbs NJ
    edited October 2005
    Thrax wrote:
    Can we not make this political? Thanks. :rolleyes:

    Sorry...

    I'm actually a republican though. ;D
  • Private_SnoballPrivate_Snoball Dover AFB, DE, USA
    edited October 2005
    Record Label execs fall under the catagory of: "Needs to be Murdered" in the subcatagory of: "Will Not Be Missed."

    It could look like this
    -O Needs to be Murdered
    O Will Not be Missed
    O Record Label Execs
    O Paris Hilton
  • drasnordrasnor Starship Operator Hawthorne, CA Icrontian
    edited October 2005
    If you'll forgive the butchered quote:
    The Hitchhiker's Guide to the Galaxy defines the RIAA as "a bunch of mindless jerks who'll be the first against the wall when the revolution comes," [...]
    Curiously enough, an edition of the Encyclopaedia Galactica that had the good fortune to fall through a time warp from a thousand years in the future defined the RIAA as "a bunch of mindless jerks who were the first against the wall when the revolution came."
    -drasnor :fold:
  • ArmoArmo Mr. Nice Guy Is Dead,Only Aqua Remains Member
    edited October 2005
    after reading the slashdot forums, an interesting set of questions and stats came up. The riaa said that CD's would become less expensive after the techniques for making them got better, they didnt, and whats it cost to make a cd 60 cents? also warner music wants a part of the ipod revenue, did they want a part of the revenue from CD players back in the day? if you ctually read up on the CEO of warner music, you see that he inhetited the company AND drove it into the ground squandering millions of dollars in the process. This is also the man that thinks movies should cost more based on the production costs of the movie. How would you like to spend $3.00 to see open water and $42.00 to see titantic. the guys is a complete incompatent idiot.
  • LincLinc Owner Detroit Icrontian
    edited October 2005
    More like a nickel to see Open Water... :rolleyes:
  • CBCB Ƹ̵̡Ӝ̵̨̄Ʒ Der Millionendorf- Icrontian
    edited October 2005
    Armo wrote:
    whats it cost to make a cd 60 cents?

    More like 9 cents.

    Unlike Magnetic media (like cassette tapes), it doesn't cost any extra to print a full CD, than it does to create a blank one. Companies that make Blank CDs are able to sell them at about 12 cents apeice, and still make a profit.

    This means that the entire cost over 12 cents for each disc is paying for content and the production of the content, something that the producer only has to pay for once.

    A high estimate for how much an album costs to produce (not counting publicity, which varies from $0 to $5mil, depending on the artist) is about $20,000.

    Even with that high estimate, we can see that at $13 a pop, an album pays for itself in less than 2,000 units sold. Even if the cost was ten times that high estimate, they easily make their investment back in the first few minutes of the release of a popular album... Everything after that is pure profit (of which the artists see about 1-5%, depending on the artist).

    Not declaring anything as right or wrong, just throwing out the numbers...
  • airbornflghtairbornflght Houston, TX Icrontian
    edited October 2005
    yeah..record companies are leagal scam artist in my mind. thats why im "fighting for a cause = sharing information = p2p"
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