Same old song

Same old song: Why is the music industry so suicidal?

Update: I’ve re-read the article, and I think “suicidal” is too strong. I actually like the “tiered” pricing approach. I think an auction model would be even better.

However, following the logic outlined in this article, I guess I should believe the record companies should also institute such a pricing strategy with other sales channels — maybe require Wal-Mart to charge different prices for every CD depending on its popularity.

My point: the record companies should set wholesale prices, not retail. That Apple makes money from multiple revenue streams should have nothing to do with the record company’s pricing. Wal-Mart attracts customers into its stores with cheap CDs and then sells them car tires. Do the record companies think they Wal-Mart should raise its prices on popular CDs because they’re making too much from tire sales?

“Clueless” is perhaps a more appropriate word than suicidal.