With all the RIAA uproar over music downloads, Pepsi’s 100 million download giveaway and the continued rise in downloading as the preferred method of buying music leading to the certain death of the physical CD, iTunes should should launch its own record label so it could increase its cut of the sale. Currently iTunes gets a very small portion of the 99 cent download fee. Conversely, record labels should launch their own download services. It’s true they’ve already partnered with the likes of Apple and Dell but the pie just gets cut too slimly for either side to make enough money. True competition will occur when either the record label side or the technology side goes it alone and in doing so, perhaps drive the cost down further while making more money. I’m no economist but it sounds like a no brainer to me and perhaps it’s already happening.
Image courtesy of BAGnews.
