
I stumbled upon this site the other day. It makes several arguments against Apple's iTunes Music Store (iTMS). The main argument being that it screws musicians just as they have been time and time before. The site states the following:
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.
Following this quote that makes the breakdown approximately: Apple $0.35, Record Label $0.51 and the musician(s) $0.14 (best case scenario).
I am not going to argue whether this is accurate or not (as I believe it is a likely breakdown). I also do not disagree that musicians are getting a bum deal. I do not, however, see iTMS as inherently evil.
For one they do distribute indie and near-indie (i.e. BSS or Wolf Parade) bands. A record label cut of 64 cents equalling at most only 14 cents is not a problem with iTMS but with the record industry. Apple has not improved the situation but they haven't changed it for the worst either.
If anything I view iTMS as an enabler. Digital music is still not an easy commodity to acquire legally. Apple has successfully combined a simple music program with the concept of an e-commerce music store. They've leveraged their market share of the iPod to force the record industry to accept digital music as a valid means of distribution. Finally, they have gained world-wide user acceptance to actually buy digital music as opposed to take it. This is no small feat esspecially considering the heavy-handed approach of the RIAA and the activity of many illegal channels such as Kazaa.
I feel I should also address the topic of Digital Rights Management or DRM as it is often referred to. This is even more topical in Canada with this press release from a couple days back annoucing the formation of the Canadian Music Creators Coalition. DRM is essentially placebo. Any DRM implementation is always a target for hackers to attempt to crack (and crack it they can and will).
DRM ultimately only protects music from the everyday user, who is not typically a bootlegger redistributing or worst reselling music en mass illegally, but merely is looking to make copies for personal use or to share music with a few friends. In fact in Canada we pay a media levy to allow us to do this legally.
Apple's DRM, FairPlay, is even more of a concern. Apple owns the rights to the FairPlay specification and have choosen not to open it to non-Apple products. This means music bought at iTMS will never work on your home sterio without the aide of an Apple product. This means only a limited usage of the digital music bought.
Alas admittedly, I am a semi-frequent consumer of iTMS. I do enjoy the convience. I believe that most of the music I buy not be mainstream and therefore that most of my money does not end up in the hands of the record industry. Also the work around to Apple's DRM? Burn a CD and re-import!