Monday, December 08, 2003
How much is digital music worth?
As the early buzz over new music services such as Apple Computer’s iTunes fades, record labels and technology companies are struggling to turn the services into profitable businesses.
Speaking at the iHollywood Forum’s Music 2.0 conference in Los Angeles Monday, executives on both sides focused on the 99-cent price tag that has become the market’s standard for downloadable music. Critics say that that price needs to come down if mainstream consumers are to start buying in large numbers, making the Internet a serious factor in the record industry’s bottom line. Record labels say they can’t afford to go lower.
“There’s very little money in this to begin with,” said David Ring, vice president of Universal Music Group’s eLabs division. “A lot of people are already recognizing that we’re going to have to sell a lot more singles at 99 cents in order for us to make money, and for artists to be able to make a living.” Full Article>>>
Speaking at the iHollywood Forum’s Music 2.0 conference in Los Angeles Monday, executives on both sides focused on the 99-cent price tag that has become the market’s standard for downloadable music. Critics say that that price needs to come down if mainstream consumers are to start buying in large numbers, making the Internet a serious factor in the record industry’s bottom line. Record labels say they can’t afford to go lower.
“There’s very little money in this to begin with,” said David Ring, vice president of Universal Music Group’s eLabs division. “A lot of people are already recognizing that we’re going to have to sell a lot more singles at 99 cents in order for us to make money, and for artists to be able to make a living.” Full Article>>>
