Apple and the Big Labels
Apple is hobnobbing with some of the biggest record companies around—Sony, EMI, Warner Music, and Universal Music Group. The tune of the closed-door discussions seems to be a new iTunes and music provider brainchild: beefing up the offering of music albums, as a steer-away from single-track sales. 
As it stands right now, digital music players (of which iTunes is the king) have no problem offering the sale of single tunes—one song at a time—rather than entire albums. Across the fence from the digital music providers sit the music producers, for whom selling albums—collections of songs—is their bread and butter. The paradigm shift to one-by-one sales has been a hammer-blow to the music providers who rely on the bigger-ticket sales of albums. People would rather spend a buck and get a great song than spend seventeen bucks and get a bundle of songs—some of which they may like, and some they won’t. In a that-settles-it-tone, David Ring, an executive for Universal Music Group said: one-by-one downloads [is] not a business that can grow.”
So…something needs to change, right?
The new approach currently in discussion, may be Apple giving a boost to the record companies by adding a flourish to album sales. The idea already has a codename: “Cocktail.” It would offer album sales, but amp up the offering by giving purchasers pictures, lyrics, videos, artwork, liner notes—other cool stuff like that. In addition, the new format will give listeners the option of playing music straight from the album (in a new virtual format) rather than utilizing the iTunes software to do so.
The million (or more) dollar question is: “will it work?” Uh…not sure about that. If we judge it by a lookalike venture from Sony BMG just over a year ago, it won’t work out so well. But maybe Apple has the chutzpah to stuff this in the faces of consumers—just like they did with the controversial ninety-nine cent track sale. And maybe, just maybe, consumers will like it.
Maybe. The whole idea is to make more money. The plus for the purchaser is the acquisition of extras to an album purchase. Right now, few reviewers are raving over Cocktail’s proposal. Consumers are used to being picky, and they may not be thrilled about giving more of their money to watch a video or check out the liner notes. After all, the music will go straight to the iPod, which goes straight to the pocket, which goes along for the jog, or commute, or whatever.
iEntry 10th Anniversary
Rumors
News


