Originally posted by: Squalish2357
Just about the cost: It costs them maybe $100k tops to set up servers for 20 million downloads... they are making around 3.5 million off those songs.
Next to nationwide brick and mortar, even the most expensive hosting is nothing.
Heck, it'll cost you lots more than to $100k to ship that all music to retail outlets across the nation. Plus, if a track doesn't sell on iTunes, it doesn't cost them anything for it to sit on a server. An unsold CD sitting on a store shelf cost just as much to get to the store as one that sells at multi-platnium level. Music on a CD doesn't make any economic sense anymore, for the seller OR the buyer. I think Napster, Rhapsody and iTMS are the only hope for the music industry. I was in my Best Buy this past weekend and noticed that even though the whole store was packed with customers, the music section was a ghost town. I was only there to check out SACD and DVD-A prices (thinking hard about a new DVD player that has support for those formats). I've really cut back on CD purchases lately (although I did just lay out $16 for the new Barenaked Ladies mainly because they put out a special edition with a second disk that had the whole album in DVD-A and Dolby Digital 5.1 - not to mention extra clips and video of an acoustic performance of 11 of the tracks. They ARE all about value).
I'd really like to see some downloadable music in an enhanced resolution, 96kHz or above and 5.1 mixed. Having to upgrade your hardware is a major issue with getting SACD and DVD-A pushed forward in the consumer electronics front, but with digital music you can just download a new version of the software to handle new codecs and DRM mechanisms. Plus, more and more of us are getting broadband, so 50-100MB downloads soon won't be an issue (since that better sounding music is going to be pretty hefty, FLAC size or bigger even if you use some sort of mpeg-4 encoding).