{"id":316,"date":"2006-02-08T13:33:39","date_gmt":"2006-02-08T20:33:39","guid":{"rendered":"http:\/\/lefsetz.com\/wordpress\/index.php\/archives\/2006\/02\/08\/the-itunes-fiasco\/"},"modified":"2006-02-08T13:33:39","modified_gmt":"2006-02-08T20:33:39","slug":"the-itunes-fiasco","status":"publish","type":"post","link":"https:\/\/lefsetz.com\/wordpress\/2006\/02\/08\/the-itunes-fiasco\/","title":{"rendered":"The iTunes Fiasco"},"content":{"rendered":"<p>How can so many be so dumb.<\/p>\n<p>Or, should we just send everybody in the music business back to school for remedial math classes?<\/p>\n<p>We live in an accelerated news cycle.\u00c2\u00a0 It&#8217;s not that the news happens faster, it&#8217;s just that everybody gets it and the word comes out SOONER!\u00c2\u00a0 Not only with big stories, like tsunamis and hurricanes, but with smaller ones, like music downloading.\u00c2\u00a0 Turns out that the jig is up.\u00c2\u00a0 In the past seven days, &quot;The New York Times&quot;, &quot;The Washington Post&quot; and other lesser media lights have told the story&#8230;digital downloads are PUTTING THE LABELS OUT OF BUSINESS!<\/p>\n<p>We&#8217;re not talking about P2P piracy here.\u00c2\u00a0 We&#8217;re talking about legitimate sales of singles, primarily through the iTunes Music Store.<\/p>\n<p>You don&#8217;t have to be a brainiac to figure this out.\u00c2\u00a0 Instead of buying an album, of TEN tracks, that costs TEN times as much as a single, people are just buying the track.\u00c2\u00a0 So, it&#8217;s as if the New York Yankees were losing a player every year.\u00c2\u00a0 I mean it&#8217;s tough to compete, tough to stay alive without a full team.<\/p>\n<p>The majors&#8217; solution to this?\u00c2\u00a0 RAISE THE PRICE!<\/p>\n<p>God, I know the chairman of one of these companies is a high school dropout, but are these guys really that math-impaired?\u00c2\u00a0 That they can&#8217;t see that two times one-tenth is now ONE-FIFTH?<\/p>\n<p>Let&#8217;s even say sales of singles increase.\u00c2\u00a0 That more singles of a hit track are sold than albums would have been.\u00c2\u00a0 How in the HELL do we get to a replacement business?\u00c2\u00a0 How in the HELL do the numbers add up?<\/p>\n<p>It&#8217;s very clear.\u00c2\u00a0 They don&#8217;t.<\/p>\n<p>All of these fucking idiots who&#8217;ve concentrated on paying off radio and fucking their stars&#8217; asses in the royalty department are completely clueless to math.\u00c2\u00a0 Is it a stretch to believe they&#8217;re clueless when it comes to the Internet too?\u00c2\u00a0 I mean if they can&#8217;t do simple addition and subtraction, can they download P2P, rip a CD, load their own iPod?<\/p>\n<p>You&#8217;d be surprised, they can&#8217;t.\u00c2\u00a0 And if you don&#8217;t know the game, your ignorance will cause you to lose.<\/p>\n<p>This is just like the dot com scenario.\u00c2\u00a0 When all the dot coms folded half a decade ago, conventional wisdom was the Internet was a ruse.\u00c2\u00a0 That it was for techies looking to make a buck.\u00c2\u00a0 It could never replace brick and mortar.\u00c2\u00a0 But it turned out the TECHNOLOGY wasn&#8217;t bad, just the ideas laid atop it.\u00c2\u00a0 Now, Internet retailing is BURGEONING!\u00c2\u00a0 The Net is transforming entire businesses.\u00c2\u00a0 Like the MUSIC BUSINESS!<\/p>\n<p>Let&#8217;s go back to the year 2000.\u00c2\u00a0 People said record stores were dead.<\/p>\n<p>But, indie stores continued to hold their own, if not THRIVE!<\/p>\n<p>Now, half a decade later, reality has finally hit.\u00c2\u00a0 Musicland goes bankrupt and Rhino and Aron&#8217;s and their brethren disappear.<\/p>\n<p>This ain&#8217;t no fantasy.\u00c2\u00a0 Suddenly, the labels are gonna wake up, and I mean SUDDENLY, and they&#8217;re barely going to be able to give away a CD.\u00c2\u00a0 THEN what are they going to do?\u00c2\u00a0 Sell singles on iTunes and DECIMATE their bottom line?<\/p>\n<p>This is the next story.\u00c2\u00a0 We&#8217;ve had enough of the IFPI pronouncements about the legitimate growth of the online market.\u00c2\u00a0 People are going to stroke their chins and say THE ONLY WAY WE CAN MAKE OUR NUMBERS IS BY SELLING A BUNDLE!<\/p>\n<p>The labels don&#8217;t realize that the French P2P license is their SAVIOR!\u00c2\u00a0 Don&#8217;t get people to pay for one track, get them to take TEN, or a HUNDRED, or a THOUSAND!\u00c2\u00a0 Sure, they might not pay a buck for each, but they&#8217;ll pay more than a buck for the entire BUNDLE!\u00c2\u00a0 So that revenue will be replaced.\u00c2\u00a0 And, with more people consuming music, labels will ultimately make more money and artists will thrive.<\/p>\n<p>But this is a different business model.\u00c2\u00a0 And the same fucks inured to MTV\/radio airplay and selling hard discs are as afraid of it as you were of jumping in the water at summer camp.<\/p>\n<p>I&#8217;d say they&#8217;re as afraid of it as you were of your computer, but today&#8217;s consumer was NEVER afraid of his computer, he saw it as his friend.\u00c2\u00a0 Until the major labels and their Mafia-style enforcement agency the RIAA enter the present there&#8217;s absolutely no way they can win.\u00c2\u00a0 Sure, a fiftysomething executive thinks a CD is just fine.\u00c2\u00a0 But there are octogenarians who still believe radio dramas are better than HBO.\u00c2\u00a0 Then again, seemingly all the oldsters have cell phones.\u00c2\u00a0 Why can&#8217;t the record business oldsters get hip to computers?\u00c2\u00a0 Why can&#8217;t they understand the immutable rules of math?\u00c2\u00a0 Why do these guys INSIST on putting themselves out of business and saying IT&#8217;S OUR FAULT!<\/p>\n<p><a title=\"When All the 'Greatest Hits' Are Too Many to Download\" href=\"http:\/\/www.nytimes.com\/2006\/02\/02\/arts\/music\/02cata.html\" target=\"_blank\">When All the &#8216;Greatest Hits&#8217; Are Too Many to Download<\/a><\/p>\n<p><a title=\"Downloads Make Singles a Hit Again\" href=\"http:\/\/www.washingtonpost.com\/wp-dyn\/content\/article\/2006\/02\/07\/AR2006020702051.html?sub=AR\" target=\"_blank\">Downloads Make Singles a Hit Again<\/a><\/p>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>How can so many be so dumb. Or, should we just send everybody in the music business back to school for remedial math classes? We live in an accelerated news cycle.\u00c2\u00a0 It&#8217;s not that the news happens faster, it&#8217;s just that everybody gets it and the word comes out SOONER!\u00c2\u00a0 Not only with big stories, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[],"class_list":["post-316","post","type-post","status-publish","format-standard","hentry","category-music-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p96vPs-56","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/comments?post=316"}],"version-history":[{"count":0,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/316\/revisions"}],"wp:attachment":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/media?parent=316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/categories?post=316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/tags?post=316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}