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iPod gives Jobs power to get what he wants

updated 12:50 pm EDT, Thu September 29, 2005

Apple to get its way?

Apple's iPod market advantage may enable the company to this holiday season--thereby controlling the MP3 player market even more--making it an even stronger powerhouse when it has to negotiate with the music labels, according to BusinessWeek. A research report by WR Hambrecht says manufacturers of flash memory will be experiencing "an uncomfortably tight supply environment" this quarter and into the first quarter of 2006 [and] smaller firms will be told to wait for their flash chips, according to the column. Apple could get an even bigger price break on flash chips from Samsung, and Toshiba may give it favorable pricing as well, making it harder for others to compete on price and amid constrained supplies, according to the column. "That makes the path for record companies clear: Jobs will get what Jobs wants. In the end, that means download prices will stay right where they are."




by MacNN Staff

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  1. ibugv4

    Joined: Dec 1969

    0

    do not anger the jobs man

    "What Jobs wants Jobs gets" has been said for decades, if only other companies would pay attention. I can see Jobs and Warner now "fine, yank your contract in April. There won't BE any available flash players to handle any other company's media format you chose to partner with. No devices. No Sales. More Piracy, and we'll remove that don't steal music note too."

  1. koolkid1976

    Joined: Dec 1969

    0

    re:do not anger the jobs

    "And we'll buy Apple Music and become our own record label. Selling the Beetels songs for 50cents a piece. We can afford to because we'll be making 10x what we make from selling your songs."

  1. Thain Esh Kelch

    Joined: Dec 1969

    0

    Hmmmm

    Its Michael Jackson and not Apple Records who own the rights to the Beatles' music.

    But Apple buying/starting a record label is a neat thing when you think about it... Only related to iTMS of course.

  1. Dr.Funkenstein

    Joined: Dec 1969

    0

    Not Michael Jackson

    Apple Corps own the rights to the Beatles recordings. Jackson owns (owned?) the publishing rights to the songs.

    Two different things.

  1. climacs

    Joined: Dec 1969

    0

    somebody

    send this link to the clueless Warner exec quoted here yesterday... they STILL don't get it!

  1. swatson

    Joined: Dec 1969

    0

    Re: Not Michael Jackson

    thanks Dr.Funkenstein, I am getting tired of this "michael jackson owns the music" stuff.

    That is why we hear beatles songs in commercials now, but not sung by the beatles. The recordings belong to the beatles, but the rights to use the tune/music/sheetmusic etc. is now permitted (for a fee to Mr. Jackson or the owner of the copyright). If Apple computer bought Apple Corp. they would have the right to sell the beatles actual recordings.

  1. lockhartt

    Joined: Dec 1969

    0

    Some Hope

    The record companies, like most large corporations who have become removed from the realities of mainstream life, don't get the fundamental reasons that iTunes is successful. The first reason is the same reason the Mac OS is successful... because we don't have to think about it, it just works. The second is that 99 cents is a magic number when it comes to pricing things... less than a dollar is an all powerful thing that appeals to any and all age groups, it feels like it almost doesn't cost anything - why do you think McDonalds has a 99-cent menu?

    If you start charging two dollars for some songs and 50 cents for others, it complicates things unnecessarily. This is especially stupid when, at any given time, the number of songs that would warrant the two-dolalr price tag because they are the "latest thing" is greatly overshadowed by the number of "older" songs that would be priced more cheaply.

    If any of the labels read this (unlikely), especially Warner, guess what? iTunes works because we like it the way it is. Get that concept through your over-thinking skulls. Change the model and folks will either go to those sites that exploit the weak copyright protection of say a former soviet republic (you know which site I mean), or just go back to "sharing" our music freely en masse.

    I only buy music online from iTunes... not because I can't buy it elsewhere, but because it is exactly the way I want things to work for me to buy music this way... and I'm not alone.

    You've got a good thing, don't F it up.

  1. Feathers

    Joined: Dec 1969

    0

    Jobs want's...

    To suggest that Steve Jobs always gets what he wants is utter nonsense. An hilarious case in point is the utterly appalling multi-picture deal he originally struck for Pixar with Jeffrey Katzenberg (while he was still at Disney). A six-year-old in Hollywood could have told him that the deal stank. One wonders whether the windows were open when he signed the deal.

  1. climacs

    Joined: Dec 1969

    0

    Jobs

    that was really a good BW article. Jobs gets it and the music industry execs don't, which is why Jobs has checkmated them and they don't even realize it yet.

    will the music biz EVER be run by non-idiots?

  1. hayesk

    Joined: Dec 1969

    0

    Re: Jobs wants

    For an unknown animation company (Pixar), Disney gave them what they needed - credibility and marketing. Sure the deal looks bad now, but back then, do you really think they'd be as famous and powerful as they are today by themselves?

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