No Over-The-Air 3G Music Downloads For New iPhone; Labels Holding Out For Higher Price Per Track?
What’s this? Amid all of the hoopla of the iPhone launch emerges this little nugget of news—the new 3G version won’t actually allow users to download music directly from the iTunes store to their handsets over their carrier’s network. In order to get iTunes tracks onto their iPhones, users will either have to sideload it, or use the phone’s Wi-Fi connection.
Both Crave and Billboard mused that Apple’s refusal to share over-the-air revenues was most likely to blame for the lack of 3G downloads. True, Apple (NSDQ: AAPL) has been notoriously controlling and demanding in the past over the revenues the device generates. This time around, however, this probably isn’t the reason, especially as allowing customers to download iTunes tracks directly over the network would certainly boost overall music sales by enlarging the potential market.
Moreover, just weeks before the 3G iPhone’s debut, Apple was reportedly negotiating away with music labels to thrash out some longstanding issues with the way iTunes sells music. One of the sticking points was over how much over-the-air mobile downloads should cost, with the labels arguing that these tracks should command a higher price than standard web sales which cost $0.70 wholesale. Looks like the two were unable to come to an agreement in time for the launch.
Related StoriesPosted In: Entertainment, Music, Gadgets, Companies, Apple, iphone
Newsletter
Comments (4)
Jun 10, 2008 9:14 AM
The problem is probably not only the label but the mobile operator requiring a share of the download.
Many of them (in the US and Latin America) already have mobile music services which will be cannibalized by iTunes.
Operators are used to get 40-60% of each mobile content sale and that is not viable under the iTunes model. That may be a problem.
Jun 10, 2008 12:11 PM
The idea that music purchased over a cell network should cost more for a consumer is completely arbitrary. It will be interesting to see how long consumers put up with the current cell based music prices.
That said as consumers we have put up with paying more when convenience is involved in many other cases.
Jun 11, 2008 12:24 PM
And so what? Music from P2Pstill costs nil in any way you download it. And root op to RIAA , MPAA and similar parasites…
Jun 11, 2008 6:44 PM
how soon for 3g itunes ota hack? flip a bit? to be posted at apple.com on july 12?