Japanese iTMS Faces Record Label Opposition
Japanese iTMS Faces Record Label Opposition
by , 10:50 AM EDT, September 8th, 2004
Japanese Mac users and iPod fans eager to jump on the iTunes Music Store bandwagon may still have a good deal of waiting in store. According to the Japanese daily Asahi, Apple and local labels are still far from reaching any sort of licensing agreement.
At issue are price and copy protection -- the cornerstones of digital music distribution. Japanese record labels oppose selling individual tracks for anything less than 200 yen, almost double the 99 cents Apple charges its U.S. customers and more than 50 percent higher than European iTunes Music Stores. Labels are also resistant to granting users the ability to burn tracks to CD, fearing that capability, especially when combined with lower prices, will cannibalize CD sales.
Yoshiaki Sakito, Apple's vice president of marketing, told Asahi he hopes the popularity of the iPod will eventually help Apple bring the iTunes Music Store to Japan on terms agreeable to all parties. "The record companies won't be able to swim against the tide forever," he said.
Apple currently offers the iTunes Music Store in the U.S., U.K., France, and Germany. Additional European stores are expected to debut by the end of October.
The Mac Observer Spin:
It took U.S. record labels years to realize that whatever decline in CD sales digital music stores might be responsible for was negligible compared to free peer-to-peer file sharing. If anyone can sway the opinion of Japanese record execs, it's Apple.Observer Comments
...always claiming that the J market is so unique to charge exorbitant prices. Ever pay $1.50 for one tomato? In Japan you do. However for digital music, I believe the $.99 or about 120 yen price would create a new market for the music business and compensate for falling CD sales. BTW, CD prices in Japan are normally US$25.00 per CD.
Wed Sep 08, 2004 1:56 pm Subject: A different pricing structure
I would doubt that Sony has much to say in Apple's iTMS Japan getting launched. The problem rather lies in the existing media pricing structure. Whereas the average American DVD sells for $20 or less, the same DVD in Japan costs almost twice that much. Similarly, a new CD in Japan can easily run upwards of $30.
In fact, Japan's domestic CD prices are so high that imports are *CHEAPER* than their domestic counterparts. In order to account for the pricing descrepancy, the Japanese domestically produced foreign CDs contain a Japanese insert about the band/artist and his/her/its history and one or more Japan-only bonus tracks. A surprising number of Japanese people are willing to pay the extra $7 to $10 for these.
Considering these numbers, 200 yen per song is a bargain. Besides, only people with Japanese billing addresses would be using it anyway.
Wed Sep 08, 2004 3:24 pm Subject:
Music distribution in Japan is different than the US. Apple faces similar hurdles in select European territories. This will change in time, but for now the hurdles need to be cleared one at a time.
Consumer noise over the lack of quality digital distribution avenues (such as iTMS) may help hasten the pace of change.
Thu Sep 09, 2004 2:05 pm Subject: Preventing international sales
Thu Sep 09, 2004 2:54 pm Subject: Re: Preventing international sales
Quotealgr wrote:
What prevents a Japanese or Canadian from getting a pay-pal account or other billing method and using the US iTunes store? I'm sure their must be a way to do it.
It's possible to tell where people are logging on from. Even if some information is hidden they can at least narrow it down to country. Then, those users are blocked from the store.
You're right, it's probably POSSIBLE to hack your way onto the iTunes store from those countries...but we're not talking about a large group of people then.
Thu Sep 09, 2004 10:01 pm Subject: 200 yen per track is too expensive
Some people have commented that 200 yen for a track isn't too expensive in Japan. I beg to differ.
We can rent CDs (full albums) for prices ranging from 300 to 500 yen in Japan. The idea used to be rent, copy to tape, return to store. Now it's rent, rip, and return. If the average album contains 10 tracks, we can get 1 track for 30 to 50 yen.
Of course, you can't "buy" individual songs, and the stores may not always have you want, especially if you live in rural areas. Additionally, it's nearly impossible to rent most new releases (the record industry prohibited this in order to drive CD sales).
When you consider this, an iTunes Music Store that sells tracks for 100 yen doesn't sound unreasonable - especially when you realize that you can rip to formats such as Apple Lossless when you rent physical CDs.
Fri Sep 10, 2004 1:50 am Subject: Re: 200 yen per track is too expensive
QuoteAtsi wrote:
Of course, you can't "buy" individual songs, and the stores may not always have you want, especially if you live in rural areas. Additionally, it's nearly impossible to rent most new releases (the record industry prohibited this in order to drive CD sales).
When you consider this, an iTunes Music Store that sells tracks for 100 yen doesn't sound unreasonable - especially when you realize that you can rip to formats such as Apple Lossless when you rent physical CDs.
Thanks for the insights, Atsi
QuoteSmall White Car wrote:Quotealgr wrote:
What prevents a Japanese or Canadian from getting a pay-pal account or other billing method and using the US iTunes store? I'm sure their must be a way to do it.
It's possible to tell where people are logging on from. Even if some information is hidden they can at least narrow it down to country. Then, those users are blocked from the store.
You're right, it's probably POSSIBLE to hack your way onto the iTunes store from those countries...but we're not talking about a large group of people then.
I thought that to use the US iTMS you needed a credit card with a US billing address.
Pete...
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