The Middleman’s Dwindling Value

“In the delivery of digital music, how does a marketplace with new entrants each day create any opportunity for anyone to raise prices? RealNetworks can’t raise prices even though it’s going to split the revenue it makes on new subscribers signing up through Comcast. Steve Jobs says that he doesn’t care if Apple’s I-Tunes loses money as long as he can sell I-Pods. How does Roxio’s, Napster and Real, along with MusicMatch, BuyMusic’s BuyMusic.com, etc. raise prices against that?”

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