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By selling "product" at half price, RealNetworks has climbed into second place in the corporate music market dominated by Apple. That was Real's claim at the conclusion of its 49-cents-a-pop download offer, under which it sold three million tracks to spotlight its Harmony application that lets songs downloaded through RealNetworks play on Apple's iPod, to Apple's anger. The latter said the former was using unfair "hacker tactics" when it launched Harmony. However, the real point isn't whether RealNetworks beat Apple.
OK, I HAVE READ BOTH SIDES OF THE STORY. JON SAYS THAT THE RECORD COMPANYS ARE RIPPING US OFF & THAT $00.49 CENTS A SONG IS TOO MUCH. THE RECORD COMPANYS SAY THAT IT COST THEM $15.00 A CD TO MAKE. THIS INCLUDES PACKAGEING, SHIPPING, ADVERTISEMENT & THE MAKEING OF A VIDEO. ALSO THEY CLAME THAT MOST BANDS SIGNED DO NOT EVEN MAKE ENOUGH OFF RECORD SALES TO PAY FOR THEIR INATEL INVESTMENT.
NOW WHO IS LYING & WHO IS TELLING THE TRUTH? BECOUSE I WOULD REALLY LIKE TO KNOW. I AM SURE SOMEONE OUT THERE HAS DONE A STUDY OVER THE PAST 10 YEARS. ON HOW MUCH THE RECORD COMPANYS HAVE SPENT ON SIGNED ARTEST AND HOW MUCH PROFIT OR LOSS THEY HAVE MADE.
Just out of curiousity, what would you consider a fair market price for music distribution, and how would the funding model reflect the costs associated with music creation and distribution?