Some MP3s to go with that Coke?

The boom of online music sales is getting ridiculous. It seems that every high brand company is entering the market, no matter what on what industry they normally operate on. Even though iTunes has shown that songs can be sold online, one has to wonder where do all these, now dozens, e-tailers find the buyers for their music?

MyCokeMusic will launch in the U.K. and promises a selection of 250k songs from 8000 artists.

In different shapes and forms, we now have Apple, Microsoft, Dell, HP, Napster, Pepsi, Coke and maybe even Wal-Mart hawking songs online. All of these companies are rushing to enter a business with atom thin margins at best and business sinking losses at worst. In almost every case, the motive is to link to a larger sale be it pricey iPods or placing a brand in the consumer's face for other, profit-making goods.

Source: The Register

Written by: Lasse Penttinen @ 8 Dec 2003 11:57

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7 comments

TVH

Yea right, when 90 percent of these companies shut down their online music sites in 9 months, they claim that piracy and p2p is responsible for their business becoming profitless...

8.12.2003 12:57 #1

GrayArea

I keep hearing about these super small margins for on-line music sales. What kind of stupid contracts are these companys signing with the "big 5" that leave so little a margin at a buck a song????? The record lables have been screwing their talent, their customers, and now on-line retailers? Unbelievable.

P.T. Barnum was right...

TVH, your observation is on the money. No pun intended ;-)

We mustn't lower ourselves to the level of those we loathe, lest we become loathsome ourselves.

8.12.2003 13:52 #2

Dela

The amount of coke I have bought over the last few years is way too much for my body to handle so i'm owed a LOT of mp3!!!

Pretty cool though, i can see the future already "buy a 2 litre bottle of coke and get an mp3 free" hehe

http://www.BillLonero.com - Check out a true artists music!

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9.12.2003 02:25 #3

Ghostdog

The record labels must be making a lot of green with these online music stores, I haven�t heard a single whine about piracy for weeks.
But seriously, they�re the ones making money from all this. Selling a huge amount of music multiple times to different stores.

9.12.2003 04:07 #4

Tedronai

I know that apple pays about 60% royalties for every song/album purchased from itunes. thats 60 cents per dollar going to the corporate machine known as the hated RIAA.

Which Is why i refuse to use any of these services.

9.12.2003 11:55 #5

GrayArea

Since my last post here I read that the average (gross) margins for on line music sales is running 25-30%. Most on-line retailers would cream their jeans for margins like that. No wonder everybody wants in. They're whining all the way to the bank. "Atom thin margins" my a$$.

We mustn't lower ourselves to the level of those we loathe, lest we become loathsome ourselves.

10.12.2003 11:54 #6

robertk1

DVD COPY SATISFACTION GUARENTEED.
DO NOT BELEIVE IT.
i WAS NOT SATISFIED WITH THE PRODUCT AND NO MONEY IS RETURNED.
wHAT KIND OF GUARANTEE IS THAT.

15.12.2003 16:47 #7

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