Apple stepping up pressure on music labels to snub Amazon
arstechnica.com
arstechnica.com
It looks like they are satisfied with what they've done, now they're just counting their chips. They are one of the big boys, the fat cats. Apple, as we used to know it, is dead.
Or something along those lines...
Apple is easy to avoid, trivial even, you can buy one of many other music players, buy other phones and use other media managers. You don't need to use any Apple product unless you opt-in to their system (buying a device) and even if you do opt-in, if you buy DRM-free tracks (which Apple pushed for, btw) you can leave iTunes any time you want if you buy a non-Apple device (the only exception being video which is still DRM-laden AFAIK).
Old Microsoft was impossible to avoid because government and businesses opted you in, and you couldn't opt-out no matter how hard you tried if you wanted to interact with those systems. Word documents were difficult or impossible to reverse engineer and MS did what it could to prevent any advancement in that area, and Exchange was nearly impossible to interface with (it's still problematic) if you weren't using Outlook.
I mean, it's not like government and businesses are using iTunes and thereby forcing people to buy Apple products to interact with the corporate iTunes system (as was the case with old Microsoft, Exchange and Office).
Besides, Apple is certainly behaving badly, granted, but in this case they aren't even pressuring the labels to stop doing business with Amazon, they're pressuring them to stop giving Amazon a day of exclusivity. The Old Microsoft way was to threaten to cut off vendors just for competing, not for giving a competitor an advantage.
Moreover they aren't even threatening to stop selling their product (as Amazon did with Macmillan's books), but to "[withdraw] marketing support for certain releases featured as Daily Deals". i.e. "If you use their promotion, you won't get ours." The idea that the labels don't like this is not surprising, because the labels love getting favors from everybody. What is surprising is that so many comments here seem to be in favor of the labels' interests.
What specific incident(s) are you referring to? The closest thing I can think of is threatening to witholding volume discounts based on vendor behavior. As I understand it this practice is only illegal because the dominant market position of Windows and Office makes MS (retroactively) a monopoly. If a small startup did the same thing that would be fine both legally and (IMO) morally. I don't know of any cases where a vendor was threatened with not being able to sell Windows or Office (i.e., "cut off"), however.
Being a HN reader, you probably have enough experience with computers that the cognitive load of tasks like file management is basically zero. But for most people, even many people who use computers on a daily basis, the cognitive load involved in managing a library of thousands of files is much higher than that of simply plugging something in. Unless they have a particular motivation to favor the former, the latter is always going to be more appealing.
iTunes and Zune make it much easier for the average consumer to manage a library of music.
Tell that to my dad and sister who deleted their whole collection of mp3s thanks to "iTunes making it much easier".
Of course, control is the reason Apple/MS don't also allow access to the filesystem on these devices.
The latter gives you control, the former "just works" (usually).
What definition of monopoly leads you to that conclusion?
Microsoft gets all sorts of crap for windows being a monopoly yet there is still mac and linux that anyone can change to. Yet they are still considered a monopoly.
By that definition apple is a monopoly.
In 2008 Apple became overall #1 in music distribution, beating Wal-Mart, so they have a chance at monopolizing the retail music distribution.
http://en.wikipedia.org/wiki/ITunes_Store#Market_share
Sherman's act declares a felony any credible attempt at monopolization, other than by merit ("superior skill" defense).
Apparently, not being evil is bullshit.
Edit: Perhaps he actually died last year and they got him to the pet cemetery before the stock went down.
Sounds reasonable to me. I wouldn't allocate my best marketing spots to weakened releases either.
If there is an opportunity to make a lot of money by abusing the antitrust law, the money will be made and distributed via bonuses to the sociopaths. The sociopaths will infiltrate the company, any company, as soon as they smell blood in the water. The law moves too slowly to impede them.
Apple basically showed the labels that selling music online was "good", they pressured the labels to drop DRM and regularly pressure the content owners (music and video) to lower prices.
Basically everything great about Amazon MP3 (prices and lack of DRM) is there not because Bezos insisted on it, but because the labels are eager to (re)gain the upper hand against Apple.
Besides, Apple is objecting to Amazon getting a day of exclusivity in return for featuring new releases, I don't see how that benefits anyone other the label and Amazon.
Not that I approve of Apple's tactics here, just saying that painting Bezos as the good guy is not exactly correct and while Jobs has freakish control issues, he has historically focused on providing the best experience (in his eyes) for consumers.