09-29-2007, 03:55 AM
[quote richorlin]The record companies are going along with it in order to stick it to Apple. They aren't satisfied with the 70% plus per song that Apple is giving them, so they are getting a bigger cut from Amazon.
I wouldn't be surprised if you were wrong about this.
A bigger cut from Amazon would not work for Amazon at all given the economies involved.
I'll bet the RIAA are willing to absorb a huge loss from this venture if they think the end result will be a diminished Apple hegemony. Not that I think it's going to happen, mind you; Apple will sell iPods whether there is an ITMS or not. But the RIAA (well Edgar Bronfman mostly) think their content is King, and they are still living the dream where they rule the world are going to wake up and be back in full control of distribution of "their" (not the musicians') product.
I wouldn't be surprised if you were wrong about this.
A bigger cut from Amazon would not work for Amazon at all given the economies involved.
I'll bet the RIAA are willing to absorb a huge loss from this venture if they think the end result will be a diminished Apple hegemony. Not that I think it's going to happen, mind you; Apple will sell iPods whether there is an ITMS or not. But the RIAA (well Edgar Bronfman mostly) think their content is King, and they are still living the dream where they rule the world are going to wake up and be back in full control of distribution of "their" (not the musicians') product.