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Peeve Farm
Breeding peeves for show, not just to keep as pets
  Blog \Blôg\, n. [Jrg, fr. Jrg. "Web-log".
     See {Blogger, BlogSpot, LiveJournal}.]
     A stream-of-consciousness Web journal, containing
     links, commentary, and pointless drivel.


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Thursday, May 1, 2003
15:12 - Apple Killed the P2P Star

(top) link
J Greely sent me a few interesting observations relevant to the avalanche of business the Apple Music Store has been seeing:

It wasn't all me, I swear! I stopped after 124 songs (at an average
price of $0.74), mostly because I want to have *some* money left
when I leave for Las Vegas next weekend. :-)

In the process I stumbled across a number of things that suggest
Apple is willing to let the labels tinker with the pricing and
availability to see what works, or to give them almost enough
rope to hang themselves. I've found complete albums that are only
available track-by-track, tracks that are only available if you
buy the complete album, albums that can't be bought track-by-track,
albums where twenty sub-minute tracks are still $0.99 each, and
tracks priced higher than $0.99. The most expensive album I've seen
was B.B. King's "Anthology" at $19.98, which has over 2.5 hours of
music on it.

Combine that with the massive amount of data being collected on
browsing and purchasing habits, all tied to individual users, and
I figure that in about a month, the labels will be wetting themselves
with joy over their ability to tweak pricing on a daily basis and get
real feedback on what motivates consumers. I suspect that we'll
start to see Virtual Greatest Hits collections that offer the same
discount pricing as "real" albums; the label can assemble a playlist
in a few seconds, upload a previously unused photograph as a "cover",
and *boom*. They don't even have to write liner notes.

That will also be the point when Apple starts to get a secondary
revenue stream, as the labels jockey for position on the home page.
If that means they have to supply exclusive tracks that people want,
I won't complain. The cool thing is that if they start trying to
create artificial "exclusives" that turn out to be crap, the market
will reject them with record speed.

Yeah. I'd noticed a few of these weird database entries, myself, but I hadn't made the logical leap to "price tweaking". Sounds like there's been a lot of negotiations and wrangling over the price structure back in the darkened rooms deep beneath the Apple Bunker; a lot of work has gone into making this venture into something that the labels can stick with.

Apple calls their DRM system "FairPlay", by the way; and thus far I've found just about nothing to dislike about it, except for one omission: server-side relational purchase tracking. (I've just sent them feedback about this.) They already keep your purchase history, so adding a more interactive and visual version of that functionality wouldn't involve any more of a compromise of privacy than is there already. And it would enable all kinds of useful consumer features, such as:
  • The ability to see at a glance, inline in the iTunes interface, which tracks you've already bought-- so you don't accidentally buy them again, like (for instance) if you buy one track from an album, and then decide you want to buy the whole thing;
  • The ability to recover (re-download) all the music you're "entitled to", if your hard drive crashes; right now they have a Knowledge Base article discussing how to back-up your music to CD/DVD, but that's not very satisfying;
  • The ability to "Check For Purchased Music" and download all the music you've bought onto all three machines you've authorized, rather than having to download it once and then copy it from one machine to another.

The metaphor isn't great, because what brick-and-mortar stores guarantee free replacement of merchandise that you lose or break? But then, this is digital media, so there's no manufacturing cost-- but then again, there's Apple's bandwidth costs to consider when you start talking about their providing more data transfers than they absolutely have to. So there's a nonzero hit they'd take for providing this service; but I think it'd be worth it. (.Mac exclusive feature, perhaps?) If they're making 35 cents per track sold, as the Reg article suggests, they might have plenty of elbow room in which to work out where they should be spending their infrastructure budget.

Anyway, J Greely also says:

Something I couldn't resist: one of my first purchases was the
theme song from Napster: Bow Wow Wow's "C30 C60 C90 Go". :-)

Sounds to me like we've just witnessed a "Video Killed the Radio Star" moment.

(And for what it's worth, I bought the "Da Da Da" song.)

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© Brian Tiemann