Despite iTunes’ Dominance, Record Companies Not Too Pleased

It’s no doubt clear to almost everyone just what kind of power Apple has over the music industry, but thinking about it, it does seem a little odd for a company that a) isn’t a record company and b) didn’t have anything to do with music before 2000. Yet, thanks to their iTunes store, they’ve been able to grasp the entire industry and wind up the ultimate decider in various decisions, such as individual track prices.

You can imagine that with Apple having such a huge role in the industry, the record companies can’t be too pleased, and that seems to be true. It’s been discovered that Apple CEO Steve Jobs and the Chairman of Sony Music, Rolf Schmidt-Holtz, had a rather heated conversation on Christmas Eve that saw Apple come out the victor. That’s the kind of power Apple has, and it’s impressive.

That’s not to say that it’s a good thing though, because in my opinion, it isn’t. With Apple remaining the dominant digital music seller, there’s little competition, and with the recent DRM drop and variable pricing, it’s going to be extremely difficult for others to compete. We need to see it happen though, for the good of the industry.

I don’t want to see music prices increase, and I really can’t see that happening soon, if ever, but I do feel we need more competition. It can’t really be a good thing all-around if the music industry is constantly holding angst towards a certain company… although, I admit it sure doesn’t feel too bad to see them in a helpless situation, given how many needless lawsuits they’ve filed against helpless users over the years.

Even Charlie Walk, the former president of Epic Records, a unit of Sony Music, acknowledges, “Whether the industry likes it or not, the iTunes chart showing the most popular songs in America is a major influencer of how kids today discover and communicate with their friends what kind of music they like. It’s a very powerful thing right now in American pop culture and immediately validates a hit song.”