iTunes iSbogus

Download with Poisoned, then burn with iTunes


	We can do so much better

	*The internet should eliminate* exploitation of musicians, not perpetuate it. There's a simple solution to preserve the cultural benefits of p2p networks and make sure musicians get paid: voluntary collective licensing. Here's how it works: Record labels let ISPs license their music. Broadband subscribers pay $5/month for unlimited downloads. If you pay this small flat fee you won't get sued. ISPs collect data on which songs are the most popular. The pool of money gets split up according to popularity. An agency like ASCAP or SoundExchange distributes the cash. All musicians gain equal access to digital distribution. share A Voluntary Collective Licensing (VCL) system is simple, practical, and could be implemented within a matter of months if the major labels let it happen. You can read more about it at the EFF's page here or at ClickTheVote. Nearly every musician would stand to benefit immediately from this system: signed musicians would receive a much larger cut, and musicians could distribute their music at zero cost--and get paid--without even signing to a label. Most importantly, peer-to-peer networks have created a tremendous public good. Every kid with a broadband connection has access to the largest library of musical works ever created, and teens are listening to more music in one year than their parents will in a lifetime. No one who cares about music and culture would ever want to destroy these networks, any more than they'd want to torch their public library. Voluntary Collective Licensing provides a way to preserve what's good about peer-to-peer networks while ensuring that musicians get paid. Unfortunately, the major labels will fight VCL with everything they've got. Major label CEOs prefer pay-per-download services such as iTunes because, the way major label contracts are written, artists receive a much lower percentage from sales (8-14%) than they do from licensed music (often around 50%). Also, even though VCL would net the major labels a huge income stream, they'd have to compete on a level playing field with independent labels and all the major label stars who jump ship for a better deal once their contracts end. While in the short term VCL would net the major labels a huge sum of money, in the long term it would mean a slow death, as majors get overtaken by smarter, cooler, more efficient independents. But why should 5 companies decide the future of our music culture?** If you think VCL is a good idea, then stop paying for major label music and keep sharing. The larger this movement grows, the sooner the major labels quit whining and take what they can get.


	Indy labels: it's all about the radio

	Short term gain, long term loss. Independent labels suffer most from the major label monopoly-- major labels' pay-for-play domination of radio makes it impossible for independent musicians to get airplay, confining independent artists to the margins. Now file sharing and CD burning have created the first real opportunity to break the major label cartel, and independents have the most to gain. Apple's iTunes Music Store is a reasonable deal for independents: they get a new revenue source, and their music is displayed alongside the major labels' with no pay-for-placement. So right now independent labels should take Apple's money, but in the long run iTunes could hurt them by shepherding the major labels through a period in which they might easily wither away. If iTunes help the majors survive, then independents lose their only chance at a level playing field (the government certainly is working to break up the major label monopoly). So if you see some indy music you like on iTunes, go to the band's website and buy the CD there. Better for you, better for them. Independent labels have been relatively quiet about filesharing but they need to speak out against the major labels or they could miss their chance. RIAA Radar Every time someone buys major label music, they're propping up the cartel that keeps independent musicians off the radio. Plus they're giving money to companies that are suing families with young children. To make sure you don't pay for major label music, use RIAA radar.

People are paying for songs on the iTunes Music Store because they think it's a good way to support musicians. But iTunes misses a huge opportunity. Instead of creating a system that gets virtually all of fans' money directly to artists-- finally possible with the internet-- iTunes takes a big step backwards. Apple calls iTunes "revolutionary" but record companies are using the service to force the same exploitive and unfair business model onto a new medium.

It's too expensive

Let's start simple: the iTunes Music Store is not a good value for customers. Apple says many users are buying whole "albums" for $8-$12 each. That's less than the $16 store price, but used CDs at Amazon or ebay cost $5, and those come with liner notes. If you don't care about liner notes, you can burn the CD from a friend for 25 cents and send the musician a buck. In both cases, you end up with a real CD, and you can always use iTunes to rip it onto your computer or mp3 player. And you don't have to deal with restrictions on how you use it.

Lossy.

Lossy means loss

iTunes AAC files don't sound as good as CDs. AAC is a "lossy" compression format: it shrinks the sound file by throwing away subtle nuance and texture that a computer program thinks you won't be able to hear. The thing is, you can hear it. You might not notice listening to your iPod on the subway, but if you get home, lie back on the couch, and listen to your new iTunes album on a real stereo, it won't have the same nuance, punch, and presence that a CD has. A burned copy of a real CD will always sound better than a burned iTunes album.

"But I don't really care about compression"

Then you're in good company: lots of people just want to hear the songs they like and don't mind listening to compressed music. The majority of those people (the sensible ones) choose peer to peer filesharing programs like Kazaa or Acquisition to get their mp3s. Downloads are fast, there's a bigger selection, and peer to peer sharing doesn't prop up the music industry. Plus it's free.

If you build a shiny new house on a landfill it still stinks

Apple says iTunes is "better than free" because it's "fair to the artists and record labels." That's simply not true. First of all, Apple gets 3 times as much money as musicians from each sale. Apple takes a 35% cut from every song and every album sold, a huge amount considering how little they have to do. Record labels receive the other 65% of each sale. Of this, major label artists will end up with only 8 to 14 cents per song, depending on their contract. Many of them will never Artists Get Ripped Off. even see this paltry share because they have to pay for producers and recording costs, both of which can be enormous. Until the musician "recoups" these costs, when you buy an iTunes song, the label gives them nothing. (Sources: major label musician's cut Apple's cut For a thorough explanation of how recouping screws musicians, see Confessions of a Record Producer by Moses Avalon)

Nothing changed

So why does iTunes give artists such a raw deal? Because it's the exact same deal that artists have always gotten from the big five record companies. Despite huge new efficiencies created by internet distribution --no CDs to make, no distributors to store and ship them, no CD stores to build and run-- artists receive the same pathetic cut. That is the disaster of iTunes. Instead of using this new medium to empower musicians and their fans, it helps the record industry cartel perpetuate the exploitation. Apple might say it's not their fault: after all, they didn't write the unfair record contracts. But when Apple supports and profits from an obviously unfair system, while telling customers that it's "fair to the artists", they are just as guilty. For years, Apple Computer has built a reputation for straightforward business. So

If Apple honestly believes that the iTunes system is fair for artists, we challenge them to display the artist's cut next to each song and let their customers decide:

[If you are a programmer and are interested in working to develop a patch, application, or script that would display this info in iTunes, please contact us.]

If the artist's cut were clearly visible, more people would want to buy music from independent labels, which give musicians a bigger share of each sale. Apple should make the Music Store open and transparent, so that customer choice can push major labels to do better. The major label mess was built on secrecy; when people can finally see how it works, it will have to change.

Keeping progress at bay

iTunes is just a shiny new facade for the ugly, exploitative system that has managed music for the past 50 years. Thanks to peer to peer filesharing, we finally have a chance to break the major record label system-- but every iTunes user who pays 90 cents on the dollar to middlemen props up the old regime and delays the day when corporations finally lose their stranglehold on music. Now that's something to feel guilty about.

Pods looks stupid.

Love not guilt

If you want to support the musicians you love, the best way to begin is by downloading the song for free on a filesharing network. Then send them what you want to give, no middleman. 14 cents. 99 cents. 10 dollars. A site like musiclink.com, though still rudimentary, makes this a little easier and is a step in the right direction. Weed (weedshare.com) is an ingenious new system where songs can be distributed on p2p networks but must be paid for after 3 plays. Instead of pursuing dead-ends like iTunes, we can develop p2p and direct contribution systems into a full-fledged music economy that sustains many more musicians than the current one. If downloading and contributing is made just as easy as iTunes, it could work and it would work. After all, iTunes is already voluntary.

Positive Changes

Since we first created this page about iTunes in August 2003, there have been some positive developments. Apple, which had previously indicated that they would only allow artists signed to record labels to offer music on iTunes, has begun including music from CD Baby. CD Baby allows any artist to join their service and takes a very small cut from each song (about 9 cents). This leaves the artist with about 55 cents from each sale, which is pretty decent-- though it could be a lot better. Additionally, as noted in the "victory" section above, Apple has stopped saying that iTunes is fair for artists, which was our primary concern. The key factor for deciding whether a music purchase is good for artists is the record label-- some purchases on iTunes leave artists with fair compensation, but buying major label music not only leaves the artists with pennies, it also supports a system that marginalizes every independent musician.

To sum up
iTunes can be a good deal for independent labels and musicians (see side bar) and there's no reason for them to boycott-- labels get a somewhat bigger cut than they would from a CD sale and artists on indy labels get much bigger cut than those on major labels. But most people don't find out about music on the internet, they hear it on the radio (that's why the majors sell 85% of all music). If the major labels can eventually use iTunes and similar internet services to survive, independent labels will stay locked off of mainstream radio. Which is why this is not an anti-Apple page-- we own Macs, we run Panther, and we know how much better Apple's computers are. It's precisely because Apple did such effective design on the iTunes Music Store software that it becomes dangerous. An unusable, unsuccessful music service won't keep major labels in control, but iTunes and copycats might. In practice, iTunes is already a voluntary contribution system -- all of their music is available on filesharing networks. It proves that people will contribute to artists if it's easy. Even more will contribute if the artist gets more than 10%.

Downhill Battle
As you've probably gathered by now, this project is about more than just iTunes. Downhill Battle is about why major label domination of music needs to end. Filesharing and CD burning have given us some tools, but we need to defend our right to use them and at the same time develop new ways to support artists. Downhill Battle has articles, interviews, news, and free music propaganda. No matter what kind of music you're into, it will be way more fun after the major labels are gone. Take a look at some projects, if you like what we do, we'd love to have you get involved: downhillbattle.org. If you're interested in reading more of our thoughts about iTunes, check out this page of responses to emails that we've received.

More:
Save the iPod We think iTunes is misguided, but we think the iPod is very important. Congressional legislation could make iPods and similar devices illegal if we don't act now.
iTunes iSbogus: Napster Sucks Edition, it's as different from this page as Napster is from iTunes.

Read more about the music industry
Stop RIAA Lawsuits Coalition - A coalition of 179 websites calling for a boycott of major label music.
The Problem with Music - Steve Albini explains major label record contracts.
Price fixing and more and more.
Pay for play - more - Why independent music can't get on the radio.
Confessions of a Record Producer - A great book and annoying web page.
Anti-trust suit against the major labels - recently filed by the Webcaster Alliance.
Zeropaid - Filesharing software and news site.
Independent label sales are rising while major label sales are falling. It's because they build a real connection between musicians and fans. They'll do even better when the majors fall and they can get on the radio. Also see this CD Baby sales graph. It looks a little different from the major labels' sales graphs, doesn't it?
Weed The best music distribution "business model" so far. Share an artist's files freely, listen 3 times for free, then pay $1 to unlock. Artists get half and filesharers even get a cut. Uses DRM, but clever enough to deserve a chance.
More Resources

iTunes Windows or Mac. Pretty outside, ugly inside.

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