Million Media

See Things Differently

The Current State Of Music Downloading Sucks!


Sony Connect has closed, Virgin has just closed, Pandora can’t launch in Europe, Rhapsody has never launched in EU, Yahoo is under review and the Telecom operators have all scaled back their music ambitions.

Anyone get the feeling we’re being cheated?

The suicidal pricing policies imposed by the majority of labels is making it impossible for anyone to establish a viable business.  Meanwhile, everyday people are learning more about how to acquire music from P2P, bit torrent, blogs, social networks and Google.

Apple is currently being investigated by the EU for the different level of prices it imposes in each country, despite all it’s downloads being sold from one place, i.e. Luxembourg. This has nothing to do with Apple. I can state, on the record, Sony Music imposed higher charges in the UK for no other economic reason than, “Most things cost more in the UK”, so they charged the same PPD rate in pounds as in euros, i.e. approx 30% more in the UK than Europe.

No, Apple’s “crime” is paying the record companies too much!  By paying such a high fee to the Majors, they set a precedent which no other retailer can compete with. The economics of running a business at 79p per download are easy to illustrate, and even easier to see there is a ceiling any retailer can pay if they are to make money.


About Neil

Neil Cartwright founded Million Media in 2006 with the aim to help people understand digital marketing and use it to their advantage. The vision hasn't changed but the technology has.

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This entry was posted on September 25, 2007 by in retail.
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