21 September 2005

Music Label Propaganda

Just read this statement for a second (from Reuters):

On the other hand, Sony BMG CEO Andrew Lack said at a Reuters gathering earlier this year that Apple is benefiting from two revenue streams, sales of both the iPod devices and song downloads, while the music industry has only one.

This is from someone at SONY. The company that has the following revenue streams the same as Apple's:
1. MP3 players
2. Music Store
3. Computers and accessories
and also owns a lot of the movie industry, gets revenue from sales of hardware for CD, DVD and other audio/video playback, to say nothing of it's TV's. And it also is responsible for more than 1/4 of the world's music output through the Sony/BMG label. As a company it makes considerably more revenue in one quarter than Apple does in one year!

If it had been another record company, perhaps we could have more sympathy, but I think Mr Lack's statement is a sad reflection that Sony's strategy of vertical integration has failed it dismally, and this is just time to lash out at a competitor that came out of nowhere to steal one of it's crowns. But that the statement remains unchallenged in the article I find disturbing.

Personally I think Sony needs to be pulled down a peg or two - it controls too much from content creation through distribution and is exerting monopolistic powers in places like Japan and Australia to the detriment of consumers.

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