Audio cassettes replaced 8-track tapes. CDs replaced audio cassettes. And now, digital downloads are starting to completely replace CDs.
Today, as the primary outlet for music, the Internet provides more opportunities for music lovers, including pirating, purchasing and no driving to the store.
An article on technology Web site TGDaily.com suggests this ease and convenience has caused $3 billion in digital sales, up 40 percent since 2006.
Since then, the digital music industry has been flooded by Apple, Microsoft and even Walmart.
Apple’s iTunes give users the option to buy a song for 99 cents or an album for $9.99. The Associated Press reported that digital music sales account for 10 percent of Apple’s revenue. Apple is mulling over a plan to offer unlimited downloads to increase consumer appeal. But like all great deals, there’s a catch.
The consumer would have the option to buy a new, more expensive “premium” iPod or iPhone. The new device comes with the unlimited plan. Apple is offering $20 per iPod/iPhone to the music labels while the RIAA suggests $80. It is unclear how much these “premium” iPod/iPhones would cost.
Apple is also looking into an unlimited plan that would cost $8 per month. The downside: this plan would only apply to iPhone customers through a deal with AT’T. Current iPod and iTunes users seem to be left out of this attractive deal.
Perhaps this plan is meant to increase the iPhone’s sales in a competitive wireless industry. The iPhone has a built-in iTunes that allows users to download music directly. With 4 million iPhone customers already, Apple would seemingly benefit greatly from this eye-catching plan.
A Wired magazine article said that Sony/BMG supports an unlimited plan, especially since its digital music profits rose 15 percent last year.
In the article, Sony/BMG CEO Rolf Schmidt-Holtz commented on Apple’s 99 cents-per-song policy: “They reflect the value of the music insufficiently. Our market study shows that the customers are ready to pay [for the unlimited service].”
Laura Loureiro ’11 frequently uses iTunes and said she is unsure about Apple’s plan.
“I’d subscribe to download unlimited songs, but I’m not sure about buying a new iPod or iPhone,” she said.
Apple’s competitors are considering a similar plan. Nokia and Universal Music Group unveiled an agreement giving certain Nokia phones access to unlimited Universal songs. RealNetworks and Microsoft are also interested in unlimited plans.
Unless Apple offers an unlimited plan to everyone, current iPod users will continue under the pay-per-song/album, and others may go back to pirating music.
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