So a lot of buzz around Cingular launching ColdPlay’s latest single and basically giving labels another reason to think like Gordon Gekko. If you can get $2.99 for a single via a mobile phone, why offer it via iTunes store. Mobile Playa has an interview with an executive from Capital Records, and well from the looks of it despite all that has happened they don’t get it. When asked why not give away the ring tone, generate buzz and perhaps more sales of albums and singles, he replies, “Absolutely not. We could also sell the ringtone and build a lot of buzz and have people then purchase the album. One is probably a much better business than the other.”
Music over mobile is going to meet the fate of mobile portals! I barely buy voice service from Cingular, and he thinks I am going to buy music from them. Dream on! I have nearly 5000 smackeroos invested in iTunes and iPod. I would rather switch the cellphone service, than iPod. Cingular can you hear me now! Now C/Net reports that record labels are pissed off at Steve Jobs for not raising prices. Biting the hand that feeds? Here is a quick arithmetic. at about 80 cents a song they make, the record labels get about $8 for an album, which costs nothing to produce. In comparison, they sell a CD for $12 or so, and incur massive distribution costs. I keep saying that record industry deserves what it is getting. So when you see one of these guys sleeping in a cardboard box in LA, make sure you wake him up, give him a solid kick in the pants… and have a big laugh at him.
4 thoughts on “Record Labels Don’t Get Mobile”
My feelings exactly.
Is your line about “biting the hand that feeds” a reference to the new NIN song?
When the recording industry raised the prices with more than 50 per cents, going from vinyl to CD’s they proved that they never have been selling music. They sell convenience. Convenience to bring music, share music and save music.
And this time we don’t need them. Read more on http://melin.typepad.com/lcpm/2005/04/why_i_dont_give.html
The record companies basically deserves to die, as long as they don’t adapt. And so far they haven’t.
If you think the labels have their head in the sand, what about the operators? Their doing even less and they want just as much as the labels. In the UK, a realtone needs to be GBP3.00 (USD5.50) for both the operator and label to get the price they want. And even at this ripoff price, there’s still no margin for the service enablers who make it all possible!