Blog Post

Music Mavens Change Tune

Mobile music is still a pittance compared with sales of physical CDs, but while the hardware revenue is expected to remain flat the current sales of $350 million in digital music could triple in the next five years, according to market research estimates…so record lables are looking there to promote growth. Wise…tardy, but wise…
“Respecting copyright and embracing technology is where we need to go,” said Thomas Hesse, president of Sony BMG’s digital group, at a keynote address to the Music 2.0 conference here last week. “Striking the right balance between making digital music available and getting adequately compensated for it is key.”
It’s common knowledge the record labels are upset with the fact that the Apple iTunes store set the standard download for a digital song at 99c, and even more annoyed that Apple shows no inclination to introduce “differential pricing”, ie. the ability to charge more for songs. There’s been a lot of talk that the mobile market will allow the record labels to charge more, and a lot of responses claiming the idea was based on a false perception of the market.
This is the first indication I’ve seen from the record labels that they realise if they want to charge more for a product they have to increase the value of the product…”Sony’s Hesse sketched plans for multiple product-release “windows” for premium, mainstream and budget versions of music on CD, Web and mobile platforms. The products include digital mixes of songs with videos and PDF artwork, ring tones, ringback tones and remixes, along with a broader variety of live-music versions, subscription services and more…”We haven’t figured out what all the new digital products will be yet. We are still inventing new ones,” said Dan Weiner, vice president of strategy for the Sony BMG digital group.
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