Japanese record labels seek 'iPod tax'

Japanese record labels are repeating what music labels have tried in several places around the world; pushing for a tax on iPod music players. A similar request in Canada for example, was shot down by an appeals court. Basically the tax is imposed on the sale of MP3 players to compensate rights holders for "possible piracy". It is very similar to the blank media levy paid in many countries like Finland. However, asking for a tax on iPod sales is a way for music labels to try forcefully receive revenue from the sale of iPods.

If you have been keeping up to date with news on the music industry, you will know that there has been a war of words between Apple CEO Steve Jobs and several major record labels. Jobs accuses them of being greedy for demanding a price hike of music downloads provided by iTunes. The labels are pushing for variable pricing methods, whereas Apple simply prefers its 99c (79p) policy on all tracks available.

Warner Music Group CEO Edgar Bronfman Jr. hit back at Steve Jobs' comments and also said it was unfair that music labels didn't get a share of profits from iPod sales. Bronfman believes the labels have a right to a cut because the label's music "promotes the iPod". Apple doesn't make significant profit from music downloads, yet artists' managers recently complained about the royalties that artists receive from music download sales.

However, the amount of money that artists receives from music downloads has nothing to do with Apple, it's between the artist and the label. The labels justify paying the artists only a few cents by saying they've had to "invest in anti-piracy initiatives". Now record labels in Japan are seeking about 2-5% of the retail price of iPods. Whatever way you look at it, Apple still holds the advantage.

The labels already agreed to Apple's proposals and thanked the company for providing a legitimate store that could compete with online piracy. iTunes holds the majority of the music download market, having sold hundreds of millions of downloads around the world.

Source:
Macworld

Written by: James Delahunty @ 11 Oct 2005 16:04

Advertisement - News comments available below the ad

3 comments

borhan9

The only thing i can think of to write about this article is. Why do we need more taxes give me a break if ur gonna tax something just put it into the price already :)

11.10.2005 18:06 #1

freshguy

Quote:Warner Music Group CEO Edgar Bronfman Jr. hit back at Steve Jobs' comments and also said it was unfair that music labels didn't get a share of profits from iPod sales. Bronfman believes the labels have a right to a cut because the label's music "promotes the iPod. So applying the above logic to other areas of the entertainment industry, I guess Mr Bronfman Jr. also feels that Warner Bros. Pictures deserves a cut of all DVD hardware sold. That makes so much sense let's just apply that concept across the board.

The bowling alley owners are then taxed by the bowling ball makers, the ammunition makers will be owed a tariff by the gun manufacturers, and finally the Christmas stocking makers owe a hefty sized tax to Santa Claus.

There is one simple fact that escapes Mr Bronfman Jr. and some of his colleagues. Any taxes levied by the record labels on hardware manufacturers will ultimately be paid by average Joe Consumer. Average Joe already pays the record labels at the very least every penny that they are entitled to when he purchases their music, downloads or otherwise. Ho, Ho, Ho indeed!

12.10.2005 01:38 #2

whoozhe

[b]Quote
The labels justify paying the artists only a few cents by saying they've had to "invest in anti-piracy initiatives"
Any excuse not to pay out royalties.
They already deduct cost for production, artwork and distribution from royalties so in most cases the artists get either nothing or a bill for the difference.
Maybe I could claim a tax for the destruction of my hearing caused by the rubbish produced by these leeches.

12.10.2005 04:21 #3

AfterDawn: News