Apple is ready to take on the record companies
Apple CEO Steve Jobs has already gone on record saying that if the music companies increase the costing of the songs available for sale on Apple iTunes; they would show that they are a greedy lot. Now, the problems seem to be growing as we might see a conflict between Apple and the music companies fighting it out.
The licensing renegotiations is set for renewal next year which would decide on whether Apple can continue to sell the songs at their current prices on their digital music store which has somewhat become an icon for the current generation iPod owners. Both sides have gained from this partnership, which has helped Apple recover to a position that it is looking ready to take on the PC manufacturers in specific markets with their products.
Apple insists that the current price regime is convenient for the users and if the prices were increased, they would result in users going back to downloading pirated content from the internet. Trends have shown that Apple iTunes has become as popular as some of the p2p applications out there giving some hope that people are liking the concept of paying songs from the internet.
However, music companies say that all the music cannot be treated equally and hence priced at the same levels. They want the prices of newly released audio and specific content exclusively made available to the Apple iTunes users to be priced higher than the other songs. However, Apple seems to have an upper hand here considering they control much of the market and are the dominant players in the segment.
However, music companies are playing it hard and want to make more money from their content from iTunes. The interesting point here is that the companies do make more money from each song sold from iTunes than music CDs and cassettes. If Apple can keep on pressing them hard, it would be a win for the consumersâ€¦