Tuesday, September 20, 2005
Steve Jobs Accuses Music Industry of Being Greedy
Posted by Kent Pribbernow in "NEWS" @ 04:00 PM
"If they want to raise the prices, it means that they are getting greedy," said Jobs, chief executive of Apple, at a news conference in Paris on Tuesday. "If the price goes up, they (consumers) will go back to piracy and everybody loses," he added."
Jobs is absolutely correct in his assertions. I've heard many arguments in support of raising prices, some of them quite credible, but the bottom line is that a price expectation exists in the minds of consumers. They are only willing to invest X amount of money in a single track. Apple correctly recognized that price point to be a dollar per song, or somewhere thereabouts. Raising prices to say..$1.50 or more per track is only going to switch people off the idea of legal downloads.
As usual, the music industry wants a bigger slice of the revenue pie. Let them eat cake, I say.
Jobs is absolutely correct in his assertions. I've heard many arguments in support of raising prices, some of them quite credible, but the bottom line is that a price expectation exists in the minds of consumers. They are only willing to invest X amount of money in a single track. Apple correctly recognized that price point to be a dollar per song, or somewhere thereabouts. Raising prices to say..$1.50 or more per track is only going to switch people off the idea of legal downloads.
As usual, the music industry wants a bigger slice of the revenue pie. Let them eat cake, I say.
