Who Was Calling Who Greedy Now?

from the that-seems-awfully-familiar dept

Just a couple of weeks ago, as Apple and the record labels were fighting, Edgar Bronfman from Warner Music started complaining that they don’t get any money from the sale of iPods. We pointed out what a silly argument that was, since the recording industry didn’t create the iPod. During part of these very public arguments, Steve Jobs called the recording industry “greedy.” Look who’s greedy now? In what certainly looks like a similar situation, Steve Jobs is now rumored to be trying to get 10% of the revenue from certain accessory makers as a license fee to work with the iPod. This is quite a leap from the 1 to 2% charged previously. While the iPod accessory market is booming, that may become a lot more difficult with Apple demanding such a large chunk of the revenue. In many ways this seems quite similar to Bronfman’s desire to get money out of the iPod. It’s one company who wants in on the profits of a successful complementary market to their own offering, not just for the profits, but to better control that market.

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Comments on “Who Was Calling Who Greedy Now?”

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Nick Krestakos says:


while i see your point i respectfully disagree.
Apple didn’t use anything or base any of the technology off of any of the record companies properties that’s like getting a percentage of every radio or cd player produced and sold. it’s ridiculous. where as the accesory companies need Apple’s permission and participation in order to produce their product.

Boo says:

Re: Re: greedy

Apple had a chance to do something really special here. They could have turned the new iMac into a real media centre by adding TV abilities, viewing, recording, scheduling etc… added to the ipods new ability to play video and their very cool new remote control / large screen interface and they would have a giant success on their hands right now… but they want to dominate every download market and shot themselves in the foot with greed, letting a chance to expand their core business slip throught their fingers.

How ironic, how quickly Apple have turned into microsoft once they have been given a monoploy in something!

malhombre says:

Re: Re: Re: greedy

What the hell is it with the MS-monopoly vs. Apple crowd?

Over the years Apple has damn near destroyed themselves through their own rabidly proprietary attitudes, locking out 3rd parties and artificially driving prices through the roof by trying to control every aspect of the Apple/Mac hardware and software development chain…and in the process, creating the very means by which the MS/IBM/Intel juggernaut was able to take over the world by wisely opening up the programming API to any and all software developers, unrestricting the BIOS, and adding driver support for everybody out there.

Thats how MS and Intel came to be the big bad monopolies – by NOT hoarding and controlling and using Big Brother regulation and the legal system, rather by taking advantage of Apple’s mistakes, throwing caution to the wind and allowing massive competition to drive costs down. And becoming the industry standards in the process.

Too bad for Apple and too bad for Jobs. Apple’s products are nearly always superior – so why are they always flirting with disaster? Innovation aside, they have no brains for business and they always wind up screwing themselves and flirting with disaster, then blaming the other guys for having the gall to be successful.

crystalattice (user link) says:

I think there's a difference.

RIAA wants a cut on the iPod, which is a music player. Do they get any money from CD players or other MP3 players? Not that I’m aware of. Apple licenses the songs for use w/ iTunes, not w/ the iPod. Hence the RIAA is already receiving their just compensation for the songs.

iPod accessory makers license the iPod name and several other iPod-related elements, so Apple can charge what they want to license the iPod brand name.

Yes, I think Apple is stupid to ask for more money from accessory dealers, but it’s a different type of license than the RIAA’s.

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