June 19, 2008 9:38 AM PDT

The music industry abuses us and we're to blame

Posted by Don Reisinger 132 comments

Many people have celebrated Apple's announcement that it has sold 5 billion songs on iTunes and it's the world's largest music retailer. Almost everyone in the world is calling this a major victory for Apple and one that we should all recognize as a milestone that deserves our praise.

But I don't.

To me, Apple's success with iTunes and its ability to sell 5 billion songs since its launch is an awful event. In fact, it's probably one of the worst stories I've read all year.

As just one of the millions across the globe who's being treated poorly by the music industry, why should I embrace this news and try so desperately to put a smile on my face?

Try as it might to do things the right way, iTunes is the result of countless negotiations with the record labels that continue to dislike everything we stand for and do everything they can to ensure that we're paying too much for a track that's locked down worse than anything we have ever witnessed in this business.

Why hasn't anyone realized that Apple's success with iTunes is the very reason we're being abused by the music industry in the first place?

Let's face it -- if iTunes wasn't nearly as successful as it is, the music industry would be forced to find new ways to sell music. Sure, the labels may not like Steve Jobs and they've turned their backs on him in the past, but iTunes is a cash cow for these companies.

Considering Apple has sold 5 billion tracks, the company has realized revenue of about $5 billion. Assuming the lion's share goes to the record labels, it's safe to say that iTunes has sent over $3 billion to the record labels assuming the $0.70 estimate is true.

And if it is, why would the record industry want to mess with a good thing?

Regardless of where you stand on this issue, it's quite easy to see that we're all a victim of the success of iTunes. And to make matters worse, we're the reason iTunes is a success in the first place.

When you "buy" a song on iTunes, you're not really buying it. Instead, you're acquiring the license to listen to a song that can be taken away from you at any moment, can't be sent anywhere you'd like for it to be, and is subject to draconian copyright laws that see you paying too much for too little.

Of course, all of those attributes are the result of negotiations between Apple and the record labels. Instead of waking up and realizing the reality of its situation, the record industry chose to control its services as much as possible and create an environment that has set off a PR nightmare.

Or has it? Have I been wrong all along? Is the record industry really as wonderful as it wants us to believe? At this point, I don't know what to believe. I certainly think it deserves the hell I give it, but if Apple can sell 5 billion songs on iTunes and we sit here and watch the record industry benefit, maybe I'm in the minority.

I'm a firm believer that we should own each and every thing we buy. Why shouldn't I have the right to buy a song on iTunes and do what I want with it whenever I want? I don't think that's asking for too much and in reality, I think it's my right to do just that.

But because iTunes is such a success, we've given the record industry the license it needs to keep abusing its power and ensuring that we can't own music, nor can we transfer it from one place to another.

And why should the labels submit to our will? If the vast majority of people are more than willing to spend $0.99 on a track from iTunes with all of its DRM and ludicrous policies, why should the record industry change a blasted thing? They have us where they want us and there's nothing we can do about it.

Or is there?

The way I see it, purchasing songs on iTunes is only perpetuating our fight with the record industry and we're being forced into a situation where the more we buy, the worse it gets. So unless we stop supporting DRM and the abuse that comes along with it, we'll be forced to endure it.

It's time we all wake up and realize that the music industry is getting us without us even realizing it. Instead of paying the RIAA's meal ticket, we need to cut it off as soon as possible. If we don't, the music industry will continue to laugh all the way to the bank.

The choice is ours. Will we make the right decision?

"The choice is ours. Will we make the right decision?"

No. The average iTunes user likely won't see your article that could get them to use their head for something other than the ear bud for their iPod to hang on to.

Sorry, I butchered up my sentence in my previous post, but I'm guessing you got what I'm getting at. Evidently, I've morphed into one of those less-than-articulate cycles lately.

(BTW)
Regarding:
"Why hasn't anyone realized that Apple's success with iTunes is the very reason we're being abused by the music industry in the first place?"

Not sure if I can agree with that entirely.

I just read this article and was going to write about it, but this is easier!

According to the RIAA, they sold 810 million digital tracks in 2007, and 425 million digital albums. At 10 songs per album, this gives us a grand total of more than 5 billion songs in 2007 alone and more than 10 billion songs since iTunes opened up.

Last I heard, eMusic was Apple's closest competitor, having crossed the 100 million mark about a year ago.

So, Apple sells 99% of the digital music in the world, but the RIAA has managed to sell twice as many songs. Or so they say.

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The author of this article seems to miss the fact that many, many of those single song purchases would have been forced into album sales 10 years ago.

Wow. Someone can just delete my last post because it's way,way, way wrong. I must have been hallucinating or something.

The RIAA claims to have sold less than 3 billion digital songs in the U.S. since iTunes opened.

"Instead of paying the RIAA's meal ticket, we need to cut it off as soon as possible. If we don't, the music industry will continue to laugh all the way to the bank"

Best advice I've seen outside this website in years. WHY ARE WE FEEDING THE BEAST??? Cut it off and watch it die a slow death.

My theory is that the only reason iTunes has been so successful is that it is filling a void that the music industry tried to ignore years ago. That void is singles. People don't want to pay $15-20 bucks for a CD full of crappy music and that one song they like. They want to buy that one song. They can on iTunes.

This demand has always been there. When the RIAA labels tried to FORCE eveyone to buy the whole CD, all hell broke loose and Napster was created. Now, with iTunes, the beast continues to feed. Funny thing is, had the RIAA record lables negotiated with Napster, instead of squashing them like a grape, they would have made this $3billion much faster. They'd likely make that much EVERY YEAR.

This is a good post, but remember that owning a CD or a DVD is also just a 'license' to listen or watch the material with rights reserved including prohibiting public performance (unless you paid extra for a performing license) and threatened prosecution for making copies. WIth CD it used to be taken for granted that you could make one backup copy if you owned the original, which the RIAA and other organizations have tried to challenge in court too. DVDs have even more stringent copyright and definately don't permit making backup copies. So in this respect, an Itunes download is not much different, especially the newer non DRM kind.

Yes, the music company missed the boat a longtime ago and have been scrambling to kick and scratch at getting back at consumers ever since. And you can't blame Apple, they saw an opportunity and went for it, it might not have improved things much but now we are seeing DRM free downloads and more bargaining power for them, it's a kick in the pants for the RIAA, if more of a slightly uncomfortable knock, rather than a ball crushing kung-fu kick.