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List:       dmca-discuss
Subject:    [DMCA_Discuss] iTunesISBogus
From:       "Jon O." <jono () microshaft ! org>
Date:       2004-02-25 6:36:21
Message-ID: 20040225063621.GE49698 () networkcommand ! com
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http://www.downhillbattle.org/itunes/index.html

People are paying for songs on the iTunes Music Store because they think it's a good \
way to support musicians. But by giving musicians just a few cents from each sale, \
iTunes destroys a huge opportunity. Instead of creating a system that gets virtually \
all of fans' money directly to artists-- finally possible with the internet-- iTunes \
takes a big step backwards. Apple calls iTunes "revolutionary" but really they're \
just letting record companies force the same exploitive and unfair business model \
onto a new medium. 

It's too expensive 
Let's start simple: the iTunes Music Store is not a good value for customers. Apple \
says many users are buying whole "albums" for $8-$12 each. That's less than the $16 \
store price, but used CDs at Amazon or ebay cost $5, and those come with liner notes. \
If you don't care about liner notes, you can burn the CD from a friend for 25 cents \
and send the musician a buck. In both cases, you end up with a real CD, and you can \
always use iTunes to rip it onto your computer or mp3 player. And you don't have to \
deal with restrictions on how you use it.

Lossy.
Lossy means loss 
iTunes AAC files don't sound as good as CDs. AAC is a "lossy" compression format: it \
shrinks the sound file by throwing away subtle nuance and texture that a computer \
program thinks you won't be able to hear. The thing is, you can hear it. You might \
not notice listening to your iPod on the subway, but if you get home, lie back on the \
couch, and listen to your new iTunes album on a real stereo, it won't have the same \
nuance, punch, and presence that a CD has. A burned copy of a real CD will always \
sound better than a burned iTunes album.

"But I don't really care about compression" 
Then you're in good company: lots of people just want to hear the songs they like and \
don't mind listening to compressed music. The majority of those people (the sensible \
ones) choose peer to peer filesharing programs like Kazaa or Acquisition to get their \
mp3s. Downloads are fast, there's a bigger selection, and peer to peer sharing \
doesn't prop up the music industry. Plus it's free.

If you build a shiny new house on a landfill it still stinks 
Apple says iTunes is "better than free" because it's "fair to the artists and record \
labels." That's simply not true. First of all, Apple gets 3 times as much money as \
musicians from each sale. Apple takes a 35% cut from every song and every album sold, \
a huge amount considering how little they have to do. Record labels receive the other \
65% of each sale. Of this, major label artists will end up with only 8 to 14 cents \
per song, depending on their contract. Many of them will never Artists Get Ripped \
Off. even see this paltry share because they have to pay for producers and recording \
costs, both of which can be enormous. Until the musician "recoups" these costs, when \
you buy an iTunes song, the label gives them nothing. (Sources: major label \
musician's cut Apple's cut For a thorough explanation of how recouping screws \
musicians, see Confessions of a Record Producer by Moses Avalon)

Nothing changed 
So why does iTunes give artists such a raw deal? Because it's the exact same deal \
that artists have always gotten from the big five record companies. Despite huge new \
efficiencies created by internet distribution --no CDs to make, no distributors to \
store and ship them, no CD stores to build and run-- artists receive the same \
pathetic cut. That is the disaster of iTunes. Instead of using this new medium to \
empower musicians and their fans, it helps the record industry cartel perpetuate the \
exploitation. Apple might say it's not their fault: after all, they didn't write the \
unfair record contracts. But when Apple supports and profits from an obviously unfair \
system, while telling customers that it's "fair to the artists", they are just as \
guilty. For years, Apple Computer has built a reputation for straightforward \
business. So 


If Apple honestly believes that the iTunes system is fair for artists, we challenge \
them to display the artist's cut next to each song and let their customers decide: 


[If you are a programmer and are interested in working to develop a patch, \
application, or script that would display this info in iTunes, please contact us.] If \
the artist's cut were clearly visible, more people would want to buy music from \
independent labels, which give musicians a bigger share of each sale. Apple should \
make the Music Store open and transparent, so that customer choice can push major \
labels to do better. The major label mess was built on secrecy; when people can \
finally see how it works, it will have to change. 

Keeping progress at bay 
iTunes is just a shiny new facade for the ugly, exploitative system that has managed \
music for the past 50 years. Thanks to peer to peer filesharing, we finally have a \
chance to break the major record label system-- but every iTunes user who pays 90 \
cents on the dollar to middlemen props up the old regime and delays the day when \
corporations finally lose their stranglehold on music. Now that's something to feel \
guilty about.

Pods looks stupid. 
Love not guilt 
If you want to support the musicians you love, the best way to begin is by \
downloading the song for free on a filesharing network. Then send them what you want \
to give, no middleman. 14 cents. 99 cents. 10 dollars. A site like musiclink.com, \
though still rudimentary, makes this a little easier and is a step in the right \
direction. Weed (weedshare.com) is an ingenious new system where songs can be \
distributed on p2p networks but must be paid for after 3 plays. Instead of pursuing \
dead-ends like iTunes, we can develop p2p and direct contribution systems into a \
full-fledged music economy that sustains many more musicians than the current one. If \
downloading and contributing is made just as easy as iTunes, it could work and it \
would work. After all, iTunes is already voluntary.

To sum up 
iTunes can be a good deal for independent labels and musicians (see side bar) and \
there's no reason for them to boycott-- labels get a somewhat bigger cut than they \
would from a CD sale and artists on indy labels get much bigger cut than those on \
major labels. But most people don't find out about music on the internet, they hear \
it on the radio (that's why the majors sell 85% of all music). If the major labels \
can eventually use iTunes and similar internet services to survive, independent \
labels will stay locked off of mainstream radio. Which is why this is not an \
anti-Apple page-- we own Macs and we know how good they are, we just wish they'd \
stick to making computers. It's precisely because Apple did such a good job with the \
iTunes Music Store software that it becomes dangerous. An unusable, unsuccessful \
music service won't keep major labels in control, but iTunes and copycats might. In \
practice, iTunes is already a voluntary contribution system -- all of their music is \
av!  ailable on filesharing networks. It proves that people will contribute to \
artists if it's easy. Even more will contribute if the artist gets more than 10%. 


Downhill Battle
As you've probably gathered by now, this project is about more than just iTunes. \
Downhill Battle is about why major label domination of music needs to end. \
Filesharing and CD burning have given us some tools, but we need to defend our right \
to use them and at the same time develop new ways to support artists. Downhill Battle \
has articles, interviews, news, and free music propaganda. No matter what kind of \
music you're into, it will be way more fun after the major labels are gone. Take a \
look at some projects, if you like what we do, we'd love to have you get involved: \
downhillbattle.org. If you're interested in reading more of our thoughts about \
iTunes, check out this page of responses to emails that we've received. 

New: 
-Tune Recycler Use unwanted Pepsi bottlecap codes to support independent music. \
-iTunes iSbogus: Napster Sucks Edition, it's as different from this page as Napster \
is from iTunes. 

Read more about the music industry 
Stop RIAA Lawsuits Coalition - A coalition of 179 websites calling for a boycott of \
major label music.  The Problem with Music - Steve Albini explains major label record \
contracts.  Price fixing and more and more. 
Pay for play - more - Why independent music can't get on the radio. 
Confessions of a Record Producer - A great book and annoying web page. 
Anti-trust suit against the major labels - recently filed by the Webcaster Alliance. 
Zeropaid - Filesharing software and news site. 
Independent label sales are rising while major label sales are falling. It's because \
they build a real connection between musicians and fans. They'll do even better when \
the majors fall and they can get on the radio. Also see this CD Baby sales graph. It \
looks a little different from the major labels' sales graphs, doesn't it?  Weed The \
best music distribution "business model" so far. Share an artist's files freely, \
listen 3 times for free, then pay $1 to unlock. Artists get half and filesharers even \
get a cut. Uses DRM, but clever enough to deserve a chance.  More Resources 

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