Music insiders said it could happen and the figures show that it finally has. 1.29, digital sales have dropped for the first time ever. Why do they raise them to begin with? Of all First, it was a power play against Steve Jobs and iTunes. The major labels have always hated the fact a computer company had not been only setting the price because of their product but distributing it as well.
The second reason was that they figured (wrongly it could seem) that they’d make more money from the same amount of downloads given that they never thought that the sales would drop. If they did Even, it was thought, they’d make the same money with fewer sales. While this can be true, it’s just a bad idea from the durability standpoint of the artist.
In Music 3.0, you want as many followers to buy in as is possible, not fewer. Sure, many will illegally download the music anyhow just but many won’t because of the trouble factor involved. The more involvement from the fan base, the better for everybody. Regardless, raising the prices on a product that’s not a necessity throughout a severe tough economy doesn’t make much sense regardless of what industry you’re in. That said, the labels do involve some really smart people working for them who could really change the landscape of the business if these were only given the opportunity. That could be too much to expect just, I’m afraid.
- The after-tax cost of