Warner hopes e-book price issue helps online music

Warner Music Group CEO Edgar Bronfman hopes current problems between Amazon and book publishers leads consumers to think about purchasing more music.

Warner, the No. 3 record label, recently said its Q1 financial results were a net loss, as the music industry still can't deal with online music.  If consumers are unwilling to pay upwards of $15 for an e-book, Bronfman hopes they're more likely to spend money on music.

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"I think what this signals is that content is going to have more pricing flexibility over time rather than less, because frankly, the only thing that drives iPhones, iPads, Kindles, Zunes and other kinds of devices is content," Bronfman said during an interview.  "I think the power of content in that little fracas with Amazon was clearly evident."

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Amazon has agreed to increase prices for Macmillan, but still faces issues with several other publishers.  Other book publishers are watching the matter closely, as they may also force Amazon to increase prices.

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The popular e-tailer sells most e-books at $9.99 per title -- including new releases and popular books -- but Macmillan successfully had some book title prices increased up to $14.99.

I've criticized the music industry heavily for its stubborn stance on Internet piracy, but Bronfmman's opinion is spot on.  I don't necessarily believe frustrated e-book consumers will suddenly switch to digital music, but it appears the music industry is finally beginning to realize content is a top priority.

Warner strong armed Apple to have iTunes song prices changed from the flat rate of 99-cent to a new price range of 69 cents up to $1.29.  Record labels are more actively working with online music services as CD sales continue to fall -- digital music sales now account for 20% of Warner's overall music business.

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