digital music/video
11/25/2004, 12:15am, EST
Thursday, November 25th
iTunes song pricing policy spurns charity fundraiser
Apple has refused to sell the charity Band Aid song via its iTunes music service. A new report says that Apple's iTunes Music Store has refused to sell Do They Know It’s Christmas? because of pricing issues, according to the UK newspaper The Times Online: "The track costs £1.49 on other major online sites which have agreed to donate their profits to relief efforts in Africa. Apple sells individual tracks at 79p but has refused to raise its price for the charity song. Because of iTunes’s dominance of the online market, Apple’s refusal to sell the track could reduce the revenues raised through online sales by 70 per cent. Millions of iPod owners will not be able to play the track over the Christmas period."
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Brilliant reporting there.
Anyway, I agree that Apple has to keep the single price model. Revenue of online sales may be reduced by 70%, but they probably should have signed the deal beforehand rather than assuming that Apple would go along with their terms. They might even have been able to convince Apple to give the full 79p collected instead of the "profits on £1.49", which probably would work out to about the same amount.
1) The opening sentence is false on its face, "THE Apple iTunes music store has refused to sell the charity Band Aid song Do They Know It’s Christmas? because it would damage the company’s dominance of the download market." They dominate the market & they're not selling it, but not selling it is certainly not a ploy to continue their dominance. The write makes it sound as if Apple is in favor of beating puppies, essentially.
2)"Millions of iPod owners will not be able to play the track over the Christmas period." Wrong again. They can still buy it via CD and rip it to iTunes. This one demonstrates bias & ignorance.
3)"The song cannot be made available for 79p because Band Aid must maximise the cash raised from each sale." This is just stupid. Of course it can be sold for 79p. And they don't have to do anything-- they seek to maximize the total amount of cash raised, and raising the per-sale price won't necessarily do that. They think 149p is the ideal price, but maybe not. And Band Aid CAN make it available for 79p, they have CHOSEN not to. This one is pure stupidity.
4) "Five million iPod players have now been sold." Well, more like 8 million according to this, http://forbes.com/personaltech/2004/10/15/cx_ah_1015tentech.html . Chalk this one up to laziness.
It's obvious that the writer here has an ulterior motive (pressuring Apple), but this is such a poorly written article that it's hard to believe it got published in a major newspaper.
This is the worst-written article ever.
Brilliant reporting there.
Best quote of the day... Macnn is getting worse and worse...
Anyway, I don't see this as a problem, if you want to help buy the single, on a real CD and THEN put it on your ipod... Is it that hard?
I suggest you do the same, there are tons of other more dedicated Mac news sites out there who take reporting more seriously...