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Loading ...An article in the New York Times today was very cutely entitled “Steve Jobs: iCame, iSaw, iCaved”. It covered the author, David Carr’s, perceptions of Steve Jobs price dropping, price fixing and price blundering. He alluded briefly to the feelings of remorse that the early buyers of the iPhone were showing when before their eyes at the Apple store near Central Park in NYC the price dropped by a third. I’ve already let you know my thoughts on this. It also seems that Apple has renamed some of the earlier iPods as iPod Classics (for some reason I don’t think it’s going to be the same story as with Coca Cola Classic). You want you Coke classic but you want your technology cutting edge… even, futuristic.
What I found most interesting in Mr. Carr’s article was his perception of the refusal of Apple to allow the producers of content to fix the prices of the songs/television shows they offer on iTunes. It’s true that as a consumer I like to be able to find the latest song that I can’t get out of my head and be able to purchase it on iTunes and know that it will not cost me more than $0.99, or if I want a little entertainment on my next plane trip I know that and episode of the Office will only cost $1.99. It’s nice. It feels like going to the equivalent of a drive-thru and getting a burger of the value menu. It’s also just as easy.
The problem is that all songs are not truly equal (neither are all shows) and for that reason the people who put them out should be allowed to name the price (just like they can for albums). The truth is iTunes is not out there to make tons of money. As Carr pointed out, it is there to ensure that people can happily load up their swanky Apple gadgets. ITunes ensures that people will keep wanting iPods and iPhones and all future i-stuff because they know that it is simple and straight forward to put all sorts of interesting and entertaining things on them.
What happens when NBC gets upset and no longer wants to put up with the price stipulations? If they pull away from iTunes and more record companies do the same will Steve Jobs finally be in some real trouble. ITunes is all about making things easy to buy and therefore easy to enjoy but what if I can’t get what I want there anymore. Apple is installing iTunes friendly purchase power in Starbucks across the nation. Sure it will be more available, but what if I can’t stock up on what I want?
As a client I am happy with the iTunes service so far but I think Apple may want to start thinking about the other end of the spectrum (record labels, TV big shots) if they want to keep everyone happy. Happiness does seem to be one thing that Apple wants to ensure stays in people’s heads when they think Apple. Hey, if they increase the prices of some of those hit singles maybe they can lower the iPhone price another $200 big ones… Here’s hoping
Filed under: Apple iTunes, Blogger Outreach, New Media, Online Media, Online Music, Price-Fixing
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I think that Apple is on the right side of things here. It’s clear that people love iPods and they love iTunes. If the record companies pull away from that model, it will be their own blunder.
I don’t think NBC is going to have much success selling The Office episodes for $5 a pop. People can sign up for DVR or Tivo for less per month and record a lot more than just The Office and watch it whenever they want. And they can fast forward through ads.
And most music is not SO GOOD that people are going to want to pay more than $1 per song. Then again, maybe if the crap the music companies push gets a higher price, the better not-as-famous bands can still charge less and finally get their day in the sun.
People can use Bittorrent. $1.99 is right where I feel it is worthwhile for me buy an episode or an entire season. So, for me, it is either a $1.99 episode for Heroes or I am going to use Bittorrent. Noone is going to pay $5 for heroes when the other option is free. Free! I have enough money for $1.99 to be okay but $5 is just too much — and I might even Bittorrent all of the episides just out of spite for gauging like that.
In NBC’s defense (like they need defending) I don’t think $5 was ever thought of as a price tag. What they wanted to do was package episodes (season bundles/5 episodes for a reduced price). Apple thought this was a little to tricky according to NBC. According to Apple, NBC just wanted to jack up the prices…. Kind of feels like you’re back at the high school lunch table right?
Nathania - what a great idea. The lesser known bands being able to get their day in the sun bc of the big record companies greed. It could happen.
Well, I already buy seasons on iTunes and they can cost anywhere from $23-$35/season, and I think that that’s reasonable.
Maybe their offerings are actually a bundle discount.
Well, Apple is much better at this because everything thinks that it is pretty stupid for any “one,” such as Vivendi or NBC, to want to not be “everywhere” is just bad business.
I wish I could look at the contract.
Well, I prefer the iTunes subscription model because new episodes come to me — with Bittorrent, I need to remember to watch.
But, I can always schedule that on my calendar, right?
[…] Consider NBC’s final decision to no longer sell their series on iTunes (a point I discussed here). They want to ensure that not only are they able to cater to their consumers individual needs but […]