Sunday, April 02, 2006

You just don't get you Scott?

Why would I pay more when I can pay less? As the record labels are urging iTunes to increase the price of hit songs, consumers are doing the opposite. While the recs think they can squeeze us for upwards of 2 bones per song, we are thinking more along the lines of 25 cents.

“We can throw variable pricing in and we can raise prices of a hit song, but it doesn’t mean consumers will buy,” said Charles Wolf, securities analyst for Needham & Co. LLC. “They have an alternative — get songs for free.”

This guy seems to be the only dude with his head on straight. Apple has sold 1 billion songs, but that doesn't even put a dent into the total number of songs downloaded legal or otherwise. If they want to sell 100 billion or even 1 trillion songs then they would need to set a price that is low enough to get us to stop using P2P or torrent software. If it were 10 cents a song, then people really would rather just cough up the cash than jump through hoops to aquire their music. Of course, the only thing that is likely to drive down the price of music is viable competition among vendors. Today its 79 cents at Wal-Mart. Whats next?

But what it really comes down to is functionality. Why pay for a song that is locked up and of poor lossy quality when you can "aquire" one that is not. Unless they start offering us something more, then the pirates will continue to rule the seas....

Think multi-channel audio that can work in your home-theater and your 8 speaker car system, etc...

Think VIP access or discounts to concerts

Think some sort of physical tangible goods associated with large purchases. (Buy 30 songs and get a T-shirt...)

Because right now you just don't get it... Scott!


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