FCC Swamped With iTunes Indecency Complaints
by John Paczkowski
Posted on September 24, 2007 at 11:17 AM PT
NBC Universal’s sandwich-board iTunes protest may well turn into a full-blown proletariat uprising after all.
At a press conference this morning, Vivendi CEO Jean-Bernard Levy slagged Apple, bitching about the company’s retail pricing strategy for its iTunes service. “The split between Apple and [music] producers is indecent,” Levy said. “Our contracts give too good a share to Apple. … We should have a differentiated price system.”
Vivendi’s Universal Music Group decided against a long-term renewal of its iTunes contract this past summer and has been month-to-month ever since. So it could certainly withdraw its catalog from iTunes if it chose to. But since Apple controls 76% of digital music sales, and some 15% of Universal’s revenue comes from digital sales, it probably won’t. At least not until it finds a digital music-distribution channel as effective as Apple’s. “We are in a phase during which many different actors are talking to each other,” Levy said. “We are trying to put in place several projects to ensure that music is better remunerated. … We are not just talking to Apple.”
Comments
I for one am so tried of hearing the music industry complain about Apple and iTunes. And the same can be said about the movie industry.
These companies have fought to force consumers to repurchase content they already own in other formats. While I understand it costs money for consumers to redownload or to get the media in a new format.
These companies take these actions regardless of the fact that digital distribution allows for less expensive content delivery. As physical media requires extra steps such as having to be manufactured and delivered.
These CEO’s and VP’s believe they are entitled to a larger share of the revenues. If other industry’s are any type of model the less than 25% that Apple receives is on average if not below by 15% what other distribution models have been in place for many many decades.
In these other models yes, prices can be set by the true owners/developers however, in this case Apple is protecting the consumer and fighting for us in this very public battle. I support Apples efforts.
These media companies are the cause of most of their problems. By not embracing changes in technology and refusing to provide the products it’s customers demand. And of coarse I am referring to the lack of digital distribution, when the technology was available and desired by consumers.
I for one would love for the WSJ or All Things Digital to host a town hall meeting with consumers and music and movie industry executives to discuss the different positions each group is taken on these issues.
In my mind these executives are only making me look for alternatives to the content they publish. I will reward companies that embrace new technologies and allow less restrictive uses of content I purchase and use legally.
For the record I have personally spent over $3000 in digital content (music, movies and TV shows).
Posted by Corey McLaughlin at September 24th, 2007 at 4:31 pm