View this article at: http://www.macnn.com/articles/08/08/29/artists.avoid.itunes/
Friday, Aug 29, 2008 4:05pm
Artists avoid iTunes; singles discourage album sales
Many artists and record labels are beginning to see a darker side to the success of iTunes, according to Wall Street Journal. Apple has maintained a strict policy of requiring each song to be available individually. Although the music might be reaching more customers, companies are beginning to notice record sales being cannibalized by singles. For the customer that just wants the song they heard on the radio, the only incentive to buy the album from iTunes is the possibility of a price cut.

Kid Rock has been vocal about his disdain for iTunes, and has vowed to keep his new music from being sold there. "So when everyone was telling me that I had to release my single on iTunes because they own the market and that's just what you've gotta do these days, I decided that I wasn't going to do it" he said in an interview with MTV. The decision hasn't been bad for him, the album Rock N Roll Jesus debuted at #1 and has sold over 1.7 million copies so far, with sales increasing for 19 of the past 22 weeks.

Atlantic pulled one of their artists from iTunes last week, R&B singer Estelle. Although her music was being sold there for months, one of her singles had just moved into the top ten list of best selling tracks. Atlantic is also Kid Rock's label, this decision was clearly not a coincidence.

A number of labels and artists would prefer to see their music sold as an album. Some want the higher profits from a CD, while others feel selling a track at a time is like selling a book by each chapter, effectively reducing its value as a complete work of art.

iTunes surpassed Wal-Mart as the largest music retailer in the US earlier this year, with over 5 billion tracks downloaded since its debut. Some artists are beginning to feel that the sheer size of iTunes makes it the only choice for significant exposure; no other company even comes close. Many complain of the inflexibility, such as the standardized pricing of 99 cents per song. Another abrasive policy is iTunes' exclusive selling rights contracts exchanged for more exposure within the program.

The music business has historically been resistant to change, and blaming so many problems on iTunes could be construed as extremely biased. Many people see iTunes as a beacon of light in a struggling industry, appealing to the shift toward downloading but offering a legal and profitable alternative.

The most vocal complaints have come from big label pop stars like Kid Rock, but what about independent artists? Acoustic guitarist Kate Walsh represents another segment of the industry, according to thisislondon.co.uk. She recorded an album in a friend's bedroom, posted the music on Myspace, then on iTunes. Her album was at the top of the download charts last year.

"This is an incredible achievement when you consider Kate Walsh is unsigned and still outsold several major international artists," said iTunes Europe director Oliver Schusser. "The record labels are queuing up to sign her now."

Some of the big record labels complain about iTunes policies, but what they can't fight is the demands of consumers. People have shown a strong preference to individual song downloads, and illegal downloading is still prevalent. Many new artists are provided with the exposure to share their music with the world. The digital age has brought great opportunity in the music industry, with companies like iTunes at the forefront of capitalizing on that potential. There are still more changes to be made, and plenty of room for competition.