Errata
Via Chicago
—• CONTENTS •—
— Errata Movie Podcast —

An article in Wired says that out of print music is the next frontier for expanding the number of legal music downloads:

In general, [Steve Jobs] said, labels have less than a third of the music in their vaults available for sale because it's too expensive to distribute such CDs to stores.

But to make songs available online, record companies wouldn't have to press CDs, get them to stores and worry about returns. "It's a one-time cost," [Alex Luke, director of music programming and label relations for Apple's iTunes Music Store] said. "Once it's been encoded and delivered, it's in the digital marketplace."

"What Jobs is saying is, 'We'd be happy to take all this content that is rotting away in warehouses and turn it into a new revenue source for you,'" said Barry Ritholtz, a market strategist with Maxim Group, a money-management firm.

I'm sure there are a few ongoing costs associated selling such music online, such as tracking royalty payments, which some labels have neglected, and maintaining digital storage and backups. But I imagine those are trivial expenses compared to manufacturing and distributing plastic saucers.

(Via MacRumors)

Posted by davis | Link