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No One Could Have Predicted

with 2 comments

… that the music labels would screw this up, too. Apple dictated that iTunes had a strict pricing policy that was uniform across the board. This worked well. Apple did well. The music industry did well. iTunes was a hit.

But Apple didn’t want DRM on the music and the music labels decided to make variable pricing a condition of removing it. Apple stuck to its guns and the industry gave the non-DRM stuff to Amazon as a way of reducing Apple’s marketshare, since Apple’s dominance was becoming a threat to their stupidly-run industry. Apple gritted its teeth and agreed to the variable pricing and got the non-DRM music.

In short, the stupid music industry, in an effort to make more money and to hurt Apple’s iTunes marketshare, raised prices on music during a recession. The result is predictable: industry-wide, growth of digital sales was 5%—down from 11% in June.

Hey, book publishers! You see this right here? You notice how the same issue is facing you? Maybe you should do something different than it looks like you’re doing?

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Written by srogers

February 9, 2010 at 11:01 am

Posted in Uncategorized

2 Responses

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  1. I’d say that _of course_ Apple wanted DRM on the music they sell. Otherwise they wouldn’t have struck a DRM deal with the music labels.

    They’re also rather keen on DRM in their AppStore in which they are free to do whatever they like.

    ssp

    February 10, 2010 at 1:56 am

  2. While I can see that perhaps early on Apple wanted DRM on the music, I don’t see why they would have wanted to keep it after the netroots began to whine about it. For movies and apps, sure.

    Scott

    February 10, 2010 at 6:36 am


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