Speaking at the GMSA Mobile Asia Congress, Warner Music CEO Edgar Bronfman Jr. praised Apple’s efforts to build a seamless music and media purchasing experience through iTunes, as he warned mobile operators against making mistakes that have his own company facing hard times. “We used to fool ourselves,” he said.
“We used to think our content was perfect just exactly as it was. We expected our business would remain blissfully unaffected even as the world of interactivity, constant connection and file sharing was exploding. And of course we were wrong.
How were we wrong? By standing still or moving at a glacial pace, we inadvertently went to war with consumers by denying them what they wanted and could otherwise find and as a result of course, consumers won.”
Although previously critical of Apple and some of its policies, particularly Apple CEO Steve Jobs’ stance on DRM, Bronfman used Apple as an example of how to cater to consumers’ wants and desires. “For years now, Warner Music has been offering a choice to consumers at Apple’s iTunes store the option to purchase something more than just single tracks, which constitute the mainstay of that store’s sales,” he explained. “By packaging a full album into a bundle of music with ringtones, videos and other combinations and variation we found products that consumers demonstrably valued and were willing to purchase at premium prices.