Apple Wants More Mobile Music From Labels
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Also under discussion is whether Apple can sell songs from its iTunes store directly to iPhones over the cell-phone broadband network. With the next generation of phone expected to use much faster 3G technology, this is technically feasible. Here too, music labels argue that they should be paid more for an over-the-air download than a standard track bought over the internet, where the wholesale price is about 70 cents.
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So let’s get this straight. The music labels think we should pay more for a song downloaded from a server that isn’t theirs, over a network that isn’t theirs, because, well, just because. One gets the feeling that, if given the chance, music executives would just hire thugs to mug anyone on the street wearing white earbuds.
It is simple for them: they’re not selling music. They’re not even selling licenses to music really. What they are selling is access to music. And for that, the price can be determined by the relative ease with which a consumer can gain access. CDs were cheaper to produce than vinyl and tape, but cost more because they were more convenient to the end user.
As for mugging people on the street; that’s not efficient enough. Remember we’re dealing with an industry that has crimes like payola in its history. They’re more likely to go for “protection” money from the makers of the devices!