The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Proposed Record Industry Fix: Sell Songs for Five Cents

Proposed Record Industry Fix: Sell Songs for Five Cents

by , 4:00 PM EST, March 9th, 2005

A former producer of the Clash turned academic scholar has proposed that songs should be sold online for just 5 cents each. While the likelihood of such a plan ever being adopted is slim, Sandy Pearlman has spoken to Apple on at least one occasion about his idea.

Mr. Pearlman employs basic economics to explain his concept. In 2004, an estimated 25 billion tracks were illegally downloaded, a figure that dwarfs legitimate sales. Lowering the price of a song to 5 cents would attract millions of additional buyers, he says, which will likely diminish the number of songs illegally downloaded. Five cents, after all, is better than no cents.

Mr. Pearlman presented his concept at the Canadian Music Week conference in Toronto last week, The Globe & Mail reported. The plan further calls for a powerful, central, and easy to use place for users to access songs, probably something Google could create or an adaptation of the iTunes Music Store. He further suggests that a 1% sales tax should be levied on Internet access and new computers, with revenues going to the music industry (similar to a tax Canada had up until recently on blank CDs).

Acknowledging that the plan is a long shot--record executives handidly shot it down when they heard it--Mr. Pearlman added that perhaps Apple and other major Internet companies should simply buy up the major record labels.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: Would take a consortium to buy all the major record labels

Apple's market cap is certainly hugely bigger than it was last year, but even now I don't think they could go out and buy all the record labels by themselves. They'd need partners.

Still not a bad idea, though. The record labels are stuck in the stone age, and are interfering with an inevitable business model. Sorry music suits, but your industry has just become a content provider to the tech sector. And you helped make it this way when you rushed to digitize all your music back in the '80s with CDs, just so you could make mo' money. Talk about irony.

Close Name:Guest
Subject: Pffft... Dude

I think heavy drug use from the 70's - 80's is clouding this guy's brain functions.
5 cent downloads
tax on internet to go straight to record industry
Apple should buy labels


Wait.. is this Al Gore ??

Close Name:geoduck Posts: 1922 Joined: 30 Dec 2003
Subject: Umm... No

From the article;
He further suggests that a 1% sales tax should be levied on Internet access and new computers, with revenues going to the music industry (similar to a tax Canada had up until recently on blank CDs).

Hey how about another 1% tax to subsidize the TV industry, after all if we're using a computer we won't be watching TV so they'll lose revenue.
How about another 1% tax to go to help out the makers of board games, after all if you're using a computer you won't be playing Monopoly so Parker Brothers will be hurt.
How about another 1% tax to go toward prophylactics manufacturers, after all if we're using a computer we won't be...um...well you get the idea.

Taxing one industry to pay for perceived losses in another is a bad idea. Nail the thieves and leave the rest of us alone.



Last edited by geoduck on Wed Mar 09, 2005 9:39 pm; edited 1 time in total
Reply | Quote
Close Name:Guest
Subject: Doing well until the 1% tax suggestion

Is this guy crazy? A 1% tax on computers for the music industry? Screw them and screw him. I don't use my computer for illegal music downloading, so why should I pay?

Close Name:Guest
Subject: New Media

Quote
Guest wrote:
Is this guy crazy? A 1% tax on computers for the music industry? Screw them and screw him. I don't use my computer for illegal music downloading, so why should I pay?


Because I use my computer to illigaly download and a few millions of people do as well. My family isn't going to use educational system in a few years but still I pay taxes and from those is education financed. Some don't use routes and so on. Modern man found out that there is some shared value about things we use therefore we all pay. Postmodern man should just broaden this list to include digital media as a part of culture of the new century. I don't say this model is good I heard about some better ones, but new medium cannot be beated. You can adapt to it but you can't change it by restrictions.
Petr, Europe

Close Name:Guest
Subject: New Media

Quote
Guest wrote:
Is this guy crazy? A 1% tax on computers for the music industry? Screw them and screw him. I don't use my computer for illegal music downloading, so why should I pay?


Because I use my computer to illigaly download and a few millions of people do as well. My family isn't going to use educational system in a few years but still I pay taxes and from those is education financed. Some don't use routes and so on. Modern man found out that there is some shared value about things we use therefore we all pay. Postmodern man should just broaden this list to include digital media as a part of culture of the new century. I don't say this model is good I heard about some better ones, but new medium cannot be beated. You can adapt to it but you can't change it by restrictions.
Petr, Europe

Close Name:jpfreeman Posts: 48 Joined: 12 Jan 2005
Subject: legalize it

We could legalize marijuana and cocaine too. People use it anyway, and at least it could be taxed and the violence would be removed from the equation.

Close Name:B-sabre Posts: 70 Joined: 18 Jan 2005
Subject:

Quote
Petr wrote:
Because I use my computer to illigaly download and a few millions of people do as well. My family isn't going to use educational system in a few years but still I pay taxes and from those is education financed. Some don't use routes and so on. Modern man found out that there is some shared value about things we use therefore we all pay. Postmodern man should just broaden this list to include digital media as a part of culture of the new century. I don't say this model is good I heard about some better ones, but new medium cannot be beated. You can adapt to it but you can't change it by restrictions.
Petr, Europe


Then they can come after your butt. I for one have a problem with being taxed on a presumption that I'm guilty of something.

And your examples don't apply. Schools, road and other utilities are all things that are used legally. Putting other familes childern through school preserves the tax base and keeps the little buggers off my yard at least 8 hours of the day.

Postmodern man can kiss my redneck butt.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

Though his proposals are a bit stretched but I do agree that price of each download should be less than 99 cents and the music label industry need to update current business model. For example, searching and promoting new talents are costly. Selling songs of new musicians on iTMS to gauge reception prior to committing huge promotion budget can save $ for music label.

Close Name:dhp Posts: 182 Joined: 22 May 2003
Subject: inventing new words

handidly?

Close Name:pyxl8 Posts: 171 Joined: 24 Dec 2003
Subject: re: inventing new words

Quote
dhp wrote:
handidly?


Geez, I just sprayed my coffee!

I think "handidly" could get you arrested in some states.... especially if you're a reclusive pop star.

-Ken P

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.

Comments are currently closed. Please email the author instead.


Recent Headlines - Updated July 6th

Mon, 11:17 AM
Ted Landau's User Friendly View - Apple’s LED Cinema Display: A Too Short Story
11:11 AM
Product News - Photo Recovery for Mac Adds Photoshop Support
10:39 AM
Hot Forum Topic - iPhones in Education
8:47 AM
News - Apple Employee Injured in Store Shooting
Fri, 10:29 AM
News - Apple Warns of Learning Interchange Security Breach
7:30 AM
News - Happy Fourth of July!
Thu, 6:07 PM
TMO Scoop - Psystar Moves to Drop Bankruptcy Ahead of Apple Legal Battle
5:37 PM
News - Uncomfirmed Reports Say Apple & Nvidia On The Outs
4:57 PM
News - Microsoft Sick Over Barf Ad
4:09 PM
Product News - KRK Ships R6 Passive Studio Monitor for Recording
3:45 PM
John Martellaro's Blog - Particle Debris (week ending 7/2)  Juiced, Joost and Goosed
3:12 PM
Product News - ExactScan 2 Pro Released

The Mac Observer Reader Specials

  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!