Someone May Want To Explain To Record Execs How Little Power They Really Have
from the just-saying dept
Warner Music is really backing themselves into quite a corner. Last week CEO Edgar Bronfman started whining about how Apple won't let them charge more for certain songs -- which, as we pointed out, isn't a problem with Apple. Warner is the initial seller. They can set whatever wholesale price they want, but they can't tell Apple how much to price something for retail. If they don't like the wholesale price, they should change it or (as we said) stop selling to Apple altogether. Now they're saying they might do exactly that. Broadband Reports points to a story about a different Warner exec claiming that Warner might just stop letting Apple sell its songs. Where it gets really amusing is that he seems to believe that it's the songs being in iTunes that sells iPods, rather than the other way around. You have to hope that these guys aren't so blind to what's happening that they actually believe they have any kind of leverage against Apple. It seems pretty clear to everyone else that it's the exact opposite. If Warner pulls out of iTunes, then people will simply get their songs for free on file sharing networks or just not listen to Warner songs at all. In either situation, Warner loses... big time. So, you have to assume that they're bluffing on this one, and just doing a really bad job of it. The thing about Steve Jobs, though, is that you get the feeling he isn't afraid (at all) to call the recording industry's bluff. Update: A few people have pointed to this article in TheRegister saying that the quote was misattributed to a Warner exec when it was really said by a music industry lawyer. What's weird, though, is that our original story wasn't from TheReg, so it sounds like multiple news sources got the original story wrong.