FreeRange

Record Companies Starting to Shun iTunes

The basic cost assumptions of what it costs to "manufacture" a CD are ridiculous and naive in the model presented in this article. Anytime you are handling a manufactured good, your costs are considerably higher. You have packaging costs, warehousing costs, inventory systems, shipping, stocking, returned product from retailers when they don't sell, defective product, instore promotion costs, costs for all the people associated with these activities, etc. etc. etc. Also, the cost to record albums has dropped dramatically in that digital equipment has enabled the recording and mixing of albums to be done much more efficiently. This is an industry that has historically been fat in their expenses, and passed down very little to their artists except at the very top tier (maybe 2 - 5% of the artists in their mix). The industry is changing dramatically and they need to adjust. Having said that, it would be in Apple's best interest, and that of the artist and industry, to sell select albums only as albums, but which ones? Who is going to play Solomon? If you try to sell them all as albums it would be a huge step backwards, and a return to piracy. Here's a concept for you music industry, have each of your acts write and produce albums on which ALL the songs are great and which consumers will therefore want to buy!

Lastly, the biggest danger to the music industry is not single track sales, but the lack of music programs in our schools that help develop top talent and keep great artists coming. Artists that can actually carry a tune and play instruments rather than sample other peoples work! In other words, a creative renaissance!