No Over-The-Air 3G Music Downloads For New iPhone; Labels Holding Out For Higher Price Per Track?
By Dianne See Morrison - Tue 10 Jun 2008 04:27 AM PST
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.
Posted in: Companies, Apple, Music Labels, Entertainment, Mobile Music, Gadgets
Tags: iphone,





