Usually I spend my blogging time bad mouthing Big Entertainment but for this I will change my tune. I want to commend the major Studios for at least starting to get with the plan. Over the years people have been complaining about the reticience of Big Entertainment to release media onto the Internet. Not that it ultimately mattered since it found its way there anyways, thank you ripping software. Now six major studios want to devise a plan to make their movies available for download over the Internet.
As I read the article it mentioned that one online company will have 300 movies and another 75 but I don't think the amount is that important today, its that it's there for the downloading. Some are complaining about the price, but I think there will be fluctuation of that and a proper amount will be forthcoming. Read the article. It is a step in the right direction and hopefully we will see more of this sort of thing happening. So to the major studios, good on you for entering the 21st Century.
Of course, after this good news comes this article. Yes the major recording companies are complaining about the standard $0.99 price per download that Apple charges through the Apple iTunes music store. Here's what it comes down to:
Jobs has argued that recording companies already make more profit by selling a song through iTunes than on a CD, which carries extra marketing and manufacturing costs.
“So if they want to raise the prices, it just means they’re getting a little greedy,” Jobs said at the Apple Expo in Paris in September.
The push by labels reflects an industrywide scramble to reap the most from a business model that only three years ago seemed unlikely to survive amid overwhelming online piracy.
Before we forget why this all works is the fact that consumers aren't feeling ripped off by it. There is a feeling that the price asked for is a good one and no one is complaining. You know the music industry likes to throw around the word 'pirate' a great deal but at this time they forget it. Steve Jobs is right, they are making a good deal of money off iTunes and will continue as long as the consumers are kept happy. Make them angry again and hello the next Napster, or LimeWire or Kazaa. These stand ready in the wing, all that's required is consumers who feel they are getting ripped off and they won't pay the outrageous sums. It happened before and it will happen again.
Suggestion: keep it to a maximum of $0.99 a download and perhaps lower. Keep your customers happy and watch the money continue to roll in. Make them angry and watch the p2p networks explode again.