Retailers Squash Online Downloads Store

[Anderton]

Remember the "Echo" thang, that was supposed to compete with iTunes and such? Check this out:

 

http://news.com.com/Big+music+stores+squelch+download+plan/2100-1027_3-5231175.html

 

Seems that Apple's iTunes is an anomaly more than the wave of the future...at least for now. It's interesting that when you do the math, the retailer's most optimistic projection for online sales was 2% of retail sales. That ain't much.

[DJDM]

Thanks for pointing that article out Craig.

I guess I just didn't understand what all the hubub was about. Then I considered the standard plan of attack for the music industry. If they want to see the same level of profit in this venture that they see in others like it while maintaining the same bloated process that seems to afflict the rest of the industry they are in for a difficult ride. Internet services seem to survive either by offering a service that did not exist before that no one can live without or they offer existing services with extraordinary convenience and in both cases (with few exceptions) they do it with very little overhead or cost.

That seems to be the polar opposite to the approach that the labels have. It's almost as if they go into every meeting asking "how can we get every friend we have on the roster and into the profit pool?"

There are plenty of music services that have sprouted up that didn't require years of diagnosis and planning. Some planning sure. But years and years and years? No.

Hey if they can't do it then step aside and let someone else make all of the money.

Besides when is adding what should be an inexpensive service like online music sales bad for business?

Me thinks that the echo team doth protest too much.

[Anderton]

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If they made iPods, maybe they'd feel differently!

[DJDM]

Originally posted by Anderton:

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If they made iPods, maybe they'd feel differently!

Fair enough.

 

Too be clear I understand that the profits for Apple do not seem to be enough to pull up steaks and get out of Brick and Mortar for the retailers but by my thinking they should not be ignoring that growing sector either. What's the point? Some profit is better than none at all right? The cost for running it should be very slight compared to the profits. But as I said I think the problem they are having has little or nothing to do with the reality of the situation. It really smacks of backroom time wasting.

[Anderton]

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EXACTLY. They are trying to translate the brick and mortar model to a new kind of world, and they're not succeeding.

 

I think an IDEAL opportunity would be back catalog. Just try to get a copy of the Les Paul box set from several years ago...you can't. The record companies have already paid for it, why not put it online? If they make $2 from it that's $2 more than they're making now!