iTunes and the 99 Cent Question

Most importantly, I like the fact that Apple maintains "editorial independence" on what records get featured on iTunes so independent labels also have a chance for success. If you look at the main Top 100 chart on iTunes, you will see mostly big name acts, as major labels will always dominate with their marketing muscle - fans buy what they hear on the radio and see on TV.

However, if you look at the genre-specific charts, you will see a large number of independent releases. Earlier this year, we had three albums in the Top 100 Dance Albums on iTunes USA all at the same time, and a few more Top 100 positions since.

I would have never imagined, even a year ago, that this could happen. It just goes to show that with online distribution, and given a much wider choice, music funs buy what they like rather than what has been forced upon them.

My main concern is that if we increase prices now, it obviously isn't going to increase the number of downloads and, in fact, might stall the whole market. At 99 cents in the US, (actually more in UK, Europe and Japan) it seems that many fans are reasonably happy with the price, so why rock the boat now and just alienate them?

We need to remove the incentive to steal, copy or buy bootlegs and create a "culture" of paying for music, which has unfortunately eroded in the last few years. There is actually a significant proportion of fans that are paying, not because they can't get it for free, but because they want to do the "right thing."

Others don't want to bother with searching for free music when they can easily find it and buy online. However, if you raise the price, this proportion will decrease - everyone has a price.

Perhaps the executives of the majors should read a few posts on forums and see what fans are saying.

Yes, sales are rapidly increasing as more people buy iPods, MP3 players, Sony PSPs, and music phones. But relatively speaking, few people are actually buying downloads. It's common sense that increasing prices will only drive some people, who are already paying customers, away from legitimate online stores.

Finally, with or without Apple, digital distribution would have happened sooner or later. There are many other great companies who are involved with music downloads, but without Apple it would have taken a few more years to hit the mainstream. By then, it would have been too late for many of us in the music business.