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European labels scared of Apple dominance

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By Dennis Lloyd

Publisher, iLounge
Published: Wednesday, May 5, 2004
News Categories: iTunes

“Music labels are dragging their feet in licensing their songs to Apple Computer because they fear its long-promised European music download site will dominate the online business, industry insiders say.

The five main record labels are understood to be scared that Apple, which makes the iPod digital music player, will become as successful in Europe as it has in the US, where it has 70 per cent of the legal download business. That could let it dictate which stars or records succeed or fail by deciding which to promote on its site.”

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Comments

1

“That could let it dictate which stars or records succeed or fail by deciding which to promote on its site”

Hah! As if the music labels themselves haven’t been guilty of the same thing for years now.

Posted by doctorjuggles on May 5, 2004 at 1:50 PM (PDT)

2

YES! WOO HOO!!!!

Glad to see the music biz shittin a brick

Posted by Alan Wegrzyn on May 5, 2004 at 1:56 PM (PDT)

3

Ok, that does it for me!  From now on, if I buy anything from a Big Five label, it will be from Apple or not at all.  If the labels are too stupid to realize Apple is better for them than illegal file sharing, then they are to stupid, or arrogant to be helped. 

Let me be clear. I don’t support illegal file sharing. But it is time for a changing of the guard in the music biz and this is the final straw.

Someone HAS to gain enough power to stop those crooks and it might as well be Apple. 

I will vote for my choice with my pocket wallet.

Posted by Paul on May 5, 2004 at 3:13 PM (PDT)

4

Microsoft: take note. The best way to the top is by providing a superior product, NOT by eliminating the competition so that your product is the only choice!

That said, I firmly believe that these record execs are fearful of the fact that they might become extinct. WHY ELSE would they object to a legal alternative to illegal filesharing of copyrighted materials over P2P networks??

Posted by ah ME mon on May 5, 2004 at 6:23 PM (PDT)

5

Apple needs the labels more than the labels need Apple.

Posted by BigSid in Los Angeles on May 5, 2004 at 7:45 PM (PDT)

6

no kidding. times and technology are changing. these record companies have to either be proactive about moving with changes or die. If they won’t work a deal with Apple and reap the benefits and profits, they’ll be losing money fighting illegal downloads and those sites from Russia.

Posted by Starboard on May 5, 2004 at 8:37 PM (PDT)

7

Sadly, Apple will have to comply with whatever standards the recording industry sets forth.  If Apple started promoting the smaller labels, then I think they still have a good chance to make it.

Posted by tetro on May 5, 2004 at 9:04 PM (PDT)

8

> fighting illegal downloads and those sites from Russia.

Yeah, those damned Russian brides have been downloading music for-freakin’-ever!

But more seriously, the record labels are OK in my book.  I mean, they’re JUST protecting their personal interest.  Exactly where would the world be without warm, caring monopolies protecting the bottom line?

I mean c’mon people, if there weren’t record companies, Americans in specific and the rest of the world in general (they’re not as important) would have never had the privaledge of hearing Mrs. Spears sing, or watching those energetic boys from the Backstreet dance.  We would have never had the pleasure of listening to the same song on the radio over and over and over again until we finally relented to the mind-numbing brainwashing to go buy the full album (1 song from the radio + 9 other songs of crap = good deal!).

All in all, Apple should be downright ashamed for trying to sell their little white “hipster boxes” at the expense of hard-working music artists through the iTunes Music Store.  What do they think this is, some kind of consumer-driven society?  For instance, take Microsoft.  They’re good at what they do, they’re reliable, affordable, and always have the consumer’s best interest in mind.  But after I heard that they’re starting an online music service too, I had my doubts about that venerable company.  Could they be selling out the way Apple always had?  Could they be trying to wiggle and weasel their way into the music-obsessed, beat-junkie wallets of today’s youth like Apple had?

I forgot where I was going with this.  But the point is, people, you need to share the love and spread the wealth.  So give your money to the record companies and their honest and hard-working executives by purchasing cds and songs on the music store as often as possible.  Eighteen dollars might not seem like a lot to you, but it can feed a really decent snack to at least one member of those executives’ families, maybe two on Sunday.  Remember, they deserve five cars just like the rest of us.

Posted by Zim on May 5, 2004 at 9:16 PM (PDT)

9

MRS. Spears? wha? She got married? To ANOTHER SPEARS? Wha?

I never hear any of the GOOD ones.

Posted by mvague on May 6, 2004 at 3:37 AM (PDT)

10

The reasoning behind the record companies being afraid of Apple is stupid.  I appreciate iTunes very much and so should the record companies because I’ve found new artists and songs I’d have never otherwise listened to, let along bought songs and or albums from.  The record companies are making money here too and in part because iTunes users are finding new artists to listen to and buy from. 

Posted by Larry on May 6, 2004 at 4:41 AM (PDT)

11

Yeah, and I can’t tell you how many times I’ve sat at my desk naked eating Cheetos and, when on a sudden impulse, I went and bought music at iTunes.

You can’t do that at Tower Records.

Posted by Hairy on May 6, 2004 at 4:48 AM (PDT)

12

Considering that Apple are now going to be SELLING music on UK shores, where does this leave the on-going Apple Corps vs. Apple Computers legal battle.

Afterall Apple (iPOD) lot are basically distributing music, so infact doing exactly what was ruled they are NOT ALLOWED to do, by the Court Judge back in ‘91. Hmmmm

Posted by XOR on May 6, 2004 at 5:26 AM (PDT)

13

Apple is trying its best to be the next Microsoft.  It wants a monopoly soooo bad.

Every move they’ve made thus far in regards to the iPod/iTMS has been monopolistic in nature.

Shame on Apple and Jobs, and I pitty all the posters who think Apple has their best interest at heart.

Apple is just like any other corporation, ready to exploit whatever opening they are given.

Posted by BigSid in Los Angeles on May 6, 2004 at 7:45 AM (PDT)

14

    I think what amazes me most is that the record companies are afraid of the online market and until the advent of peer to peer they didn’t even think online downloading would amount to anything. I mean people are going to buy the music they are going to buy regardless of influence. The only difference is they might actually buy something they would have never bought which since I have been using the iTunes Music Store is something I find myself doing quite often.
  Simply put I wish the record companies would stop whining

Posted by Macleod on May 6, 2004 at 9:27 AM (PDT)

15

Doesn’t Europe already have a online music store monopoly - OD2 - which wholesales online music to the likes of Virgin Megastore and mycokemusic (both of which I’ve used and both have simply appauling interfaces and confusing credit system - you have to work out how much the music is actually costing you)

I agree with macleod, the record company’s make enough money out of us from legitimate purchases, they should stop whining.

Posted by bob on May 6, 2004 at 11:06 AM (PDT)

16

“Apple needs the labels more than the labels need Apple.”

Bullsh*t!

You’re such a troll, (B)ig(S)id

Posted by The Raven in USA on May 6, 2004 at 11:06 AM (PDT)

17

“Americans in specific and the rest of the world in general (they’re not as important)”

I really cannot beleive you just said that zim, exactly how patriotic are you to your oh so fantastic country run by the worlds number one (George Bush if you couldn’t work it out)

You must bear in mind the EU was formed to fight a *supergiant* like yourself, not just so we could all go and get jobs in other countries and share a currency.

you not big, your not clever, and your definately not important (thats referring to your country and your ‘leader’)

so basically take that back because thats the most arrogant thing I’ve ever heard an american say…

Posted by angry british man(silver_haze20) on May 6, 2004 at 1:02 PM (PDT)

18

this is the most ludicrous thing i’ve ever heard! the labels are afraid that the itunes music store is going ot dictate culture because of promotion? i seriously doubt that. mtv, radio, and tv are already doing that. i think most people use the iTMS to BUY music, not to figure out what they should be listening to.

Posted by me on May 6, 2004 at 1:39 PM (PDT)

19

Raven-

Could you enlighten me on how what I said was BS?

Look, people are buying songs provided by the Labels.  Along with Apple, ten other companies you probably know of are trying to sell via the Net.  What if the labels decide to pull their catalogs from Apple?  What would Apple sell?  But, if Apple said they didn’t want to carry the catalogs, the Labels would go somewhere else and sell their stuff.  WalMart, Real, Amazon, CNet, Microsoft would all be willing to fill the void.

How do you figure Apple is the key component to this equation?

There is no real money or power in distribution via the Net when it comes to donwnloaded music.

The $70mil gross that iTMS made its first year is a drop in the bucket to the music industry.  Apple has NO power over the labels.

Apple is trying to get people hooked on iTMS/ACC so that they will buy iPods.  A person buying an iPod mini is the equivalent of them downloading at least 500 songs from iTMS for Apple. 

How does that math work: An iPod mini purchase equals at least $50 profit for Apple.  For each downloaded song it’s estimated Apple gets $0.10 (10 cents).  Can you do long division ‘Raven’?  Ten cents goes into $50… 500 times.  What about when someone buys a 40GB?  Ten cents goes into $250(profit) 2,500 times.

When formats standardize, more stores open on the Net and someone puts out a true competitor to the iPod, you will see the demise of iTMS and Apple’s monopolistic intentions.  Of course, most fanboys don’t think this will ever happen, but it’s gonna happen sooner than you think.  It happens to every company that tries to do what Apple is trying to do.

It’s all hype.  All smoke and mirrors.

Seriously, Raven, if you think I’m wrong please let me know your POV.  If you’re just a fanboy, that’s understandable.

Posted by BigSid in Los Angeles on May 6, 2004 at 4:02 PM (PDT)

20

Hey angry british man… I feel sorry for you… If you couldn’t realize the blatant sarcasm that was slapping you in the face the entire time you were reading that post… WOW.

Posted by Tron on May 6, 2004 at 5:30 PM (PDT)

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