NY prosecutor probing online music prices

[Dr Mordrid]

Eliot Spitzer, a prosecutor famous for investigating financial misconduct by corporations and white collar crimes, is now targeting the prices charged for downloading online music by the big players;

LA Times article....

Warner, Sony BMG, EMI, Universal....

Oops.....

Dr. Mordrid

[Gurm]

A buck a song doesn't bother me. Why doesn't he go after the USURIOUS prices they charge for actual CD's?

[Dr Mordrid]

You have to look at it from Spitzers point of view: he wants to run for Governor or Senator from NY

Personally I find prosecutors with higher aspirations suspcious themselves. Never can tell when one will try creating a "big case" against someone (public figure or little guy) just to further their ambitions.

For this reason I've always thought that prosecutors should not be allowed to run for another office for 2 years after they quit.

Dr. Mordrid

[Wombat]

I think a buck a song is ridiculous, once you look at where the dollar goes.

It's about what they charge for a CD. Except that only about 3 cents goes to the artist, something like 11 cents to iTunes (who actually pays for the bandwidth), and the rest goes to the label. For what? No costs for them, just profit.

[Jammrock]

I think a buck a song is ridiculous, once you look at where the dollar goes.

It's about what they charge for a CD. Except that only about 3 cents goes to the artist, something like 11 cents to iTunes (who actually pays for the bandwidth), and the rest goes to the label. For what? No costs for them, just profit.

It's more like $0.40 to the producer(s), $0.40 to the label, $0.11 to Apple, and $0.09 to the artist. Most modern artists, except for the mega bands like U2 and Metallica, make almost all their money by touring.

The label will argue they need that cut because 1) they don't get a cent of the bands touring money (unless they sponser the tour), 2) they pay to "develop" the talent, 3) they pay for advertising your album (and paying off the radio stations) ... etc.

Jammrock

[Dr Mordrid]

3 is pure BS given the internet and word of mouth are where most music is promoted these days. Not to mention that TV promotion usually occurs on a conglomerates own affiliates (ie: the WB music ads during Smallville etc.), which means their real cost is minimal.

Dr. Mordrid

[Jammrock]

True, but paying off radio stations is expensive these days

[Elie]

Radio Stations are the ones that pay royalties for playing the songs each and everytime it's aired.

[Dr Mordrid]

And payola is paid as a kickback.....something the FCC's been fighting since the 50's scandals. The more things change the more they stay the same

Dr. Mordrid

[Wombat]

They don't pay for the advertising. They charge the band for marketing.

[Taz]

I think it will be the record companies rather than the marketing division of the Sirius Cybernetics Corp. that will be first against the wall when the revolution comes