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November 26, 2004

Why Squeeze the Retailer? [4:35 am]

And what’s happening to the record company skim? A different look at the pressures on retailers in the music business. Apple iTunes don’t know it’s Christmas-time at all [pdf]

THE Apple iTunes music store has refused to sell the charity Band Aid song Do They Know It’s Christmas? because it would damage the company’s dominance of the download market.

The track costs £1.49 on other major online sites which have agreed to donate their profits to relief efforts in Africa. Apple sells individual tracks at 79p but has refused to raise its price for the charity song.

[...] Universal Music, the record company which is releasing the single, is still keen to come to an agreement with Apple. The song cannot be made available for 79p because Band Aid must maximise the cash raised from each sale.

Band Aid sources said that it was “very disappointing” that the American giant would not agree to bend its sales policy when artists, retailers and the Treasury had done all they could to maximise the money raised.

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