Shocker: Music labels site slowing sales growth after iTunes variable raised pricing scheme.

You know, sometimes I wish I could reach through my monitor and punch the select few “media moguls” who run the record companies in the throat. Why the graphic outrage? It isn’t so much outrage as it is “see, I told you so”. During Warner Music Group’s earnings call today, the company sited slowed sales growth since variable raised prices hit iTunes. I crossed out the “variable” as it’s damn near impossible to find a $0.69 song, with most either staying at $0.99 or being bumped up to $1.29. To appease those looking for raw numbers: Sales growth year-to-year was about 5% or half of what it was end of 2008.

Of course, not wanting to admit defeat and accept responsibility for yet another failed attempt to rip off consumers, Label chief Edga Bronfman twisted the sour outcome on the notion that the online music industry is now a “developed market”. That may in part be a small sliver of the equation. I mean, digital music and the Whole online revolution has been around for a solid decade. It’s only the last few years that major record labels finally started getting on board.

Mr. Bronfman even goes on to express jealousy for the ebook market and their recent “victory” in raising prices. (Can no one in that industry realize how stupid they look?) I don’t know about you, but I’m sure I as well as countless ebook fans everywhere are still weeping at the imminent, across the board price increases.

This kind of “it’s not our fault” thinking is exactly why the music industry as it is now will never return to the extreme monopoly that it once had. It shows that consumers have become wise to the situation. I stopped buying music from iTunes as soon as the variable pricing hit. I know I’m not alone. Yet still, iTunes remains a juggernaut in online music. Even still, the decline of the major record label run music industry is beginning. And what a grand and glorious ride it will be.

Am I the only one who sees the record labels’ gross incompetence or is it really all just the economy and the “mature market”.

AlleyInsider
Electronista

Author: Mike Norris

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Gadget lover, smartphone collector, and beer connoisseur. I've been writing about gadgets for three years now and loving every minute of it. Outside of the digital landscape, I enjoy being active outdoors. I'm always up for a good conversation, so feel free to drop me a line!