Record Labels Don’t Get Mobile

So a lot of buzz around Cingular launching ColdPlay’s latest single and basically giving labels another reason to think like Gordon Gekko. If you can get $2.99 for a single via a mobile phone, why offer it via iTunes store. Mobile Playa has an interview with an executive from Capital Records, and well from the looks of it despite all that has happened they don’t get it. When asked why not give away the ring tone, generate buzz and perhaps more sales of albums and singles, he replies, “Absolutely not. We could also sell the ringtone and build a lot of buzz and have people then purchase the album. One is probably a much better business than the other.”

Music over mobile is going to meet the fate of mobile portals! I barely buy voice service from Cingular, and he thinks I am going to buy music from them. Dream on! I have nearly 5000 smackeroos invested in iTunes and iPod. I would rather switch the cellphone service, than iPod. Cingular can you hear me now! Now C/Net reports that record labels are pissed off at Steve Jobs for not raising prices. Biting the hand that feeds? Here is a quick arithmetic. at about 80 cents a song they make, the record labels get about $8 for an album, which costs nothing to produce. In comparison, they sell a CD for $12 or so, and incur massive distribution costs. I keep saying that record industry deserves what it is getting. So when you see one of these guys sleeping in a cardboard box in LA, make sure you wake him up, give him a solid kick in the pants… and have a big laugh at him.

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