Comments on: $.99 is not the market rate for downloads http://gonze.com/blog/2007/05/09/99-is-not-the-market-rate-for-downloads/ internet music technology Tue, 07 Feb 2012 22:25:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: lucasgonze http://gonze.com/blog/2007/05/09/99-is-not-the-market-rate-for-downloads/comment-page-1/#comment-93 lucasgonze Mon, 20 Aug 2007 20:23:34 +0000 http://blog.gonze.com/2007/05/09/99-is-not-the-market-rate-for-downloads/#comment-93 Hey Kevin, Sorry, I don't recall the source. I was fast and loose with it because the overall math works out the same for any counts within a realistic range. Let's say there the average song count is 100. The implied price is (average total spending at iTMS)/(average number of songs on an iPod). Pushing the number of average songs up an order of magnitude gives 100 purchases / 10,000 songs = $.01 per song. Hey Kevin,

Sorry, I don’t recall the source. I was fast and loose with it because the overall math works out the same for any counts within a realistic range.

Let’s say there the average song count is 100. The implied price is (average total spending at iTMS)/(average number of songs on an iPod). Pushing the number of average songs up an order of magnitude gives 100 purchases / 10,000 songs = $.01 per song.

]]> By: Kevin B http://gonze.com/blog/2007/05/09/99-is-not-the-market-rate-for-downloads/comment-page-1/#comment-94 Kevin B Mon, 20 Aug 2007 20:10:02 +0000 http://blog.gonze.com/2007/05/09/99-is-not-the-market-rate-for-downloads/#comment-94 Hey Lucas, where do your iTunes/iPod numbers come from? My impression is that Apple has sold 100M+ iPods and over 3B songs, so that the number of songs per iPod owner is in the 25-30 range Hey Lucas, where do your iTunes/iPod numbers come from? My impression is that Apple has sold 100M+ iPods and over 3B songs, so that the number of songs per iPod owner is in the 25-30 range

]]> By: Jay Fienberg http://gonze.com/blog/2007/05/09/99-is-not-the-market-rate-for-downloads/comment-page-1/#comment-92 Jay Fienberg Fri, 11 May 2007 03:29:21 +0000 http://blog.gonze.com/2007/05/09/99-is-not-the-market-rate-for-downloads/#comment-92 Good analysis. As someone about to sell song / album downloads directly and through iTunes, its helpful to think about this $.50/track number as not only a price I could set that's "cheaper than iTunes" but also one that a theoretically free market of music downloads might recognize as "a fair price." With the marketplace being so fragmented by technical and legal (monopoly) barriers, it's maybe a lot more complicated: most buyers don't have anything like free access to the information that would allow them to assess fair value. Good analysis. As someone about to sell song / album downloads directly and through iTunes, its helpful to think about this $.50/track number as not only a price I could set that’s “cheaper than iTunes” but also one that a theoretically free market of music downloads might recognize as “a fair price.”

With the marketplace being so fragmented by technical and legal (monopoly) barriers, it’s maybe a lot more complicated: most buyers don’t have anything like free access to the information that would allow them to assess fair value.

]]> By: gurdonark http://gonze.com/blog/2007/05/09/99-is-not-the-market-rate-for-downloads/comment-page-1/#comment-91 gurdonark Thu, 10 May 2007 18:43:28 +0000 http://blog.gonze.com/2007/05/09/99-is-not-the-market-rate-for-downloads/#comment-91 A reasonable argument, although to me, the debate should focus not only on fmv under the current regime, but on a return to a regime which balances fmv against the importance of encouraging access, similar to the "old test" used prior to the current regime. A reasonable argument, although to me, the debate should focus not only on fmv under the current regime, but on a return to a regime which balances fmv against the importance of encouraging access, similar to the “old test” used prior to the current regime.

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