The good people at Apple generally seem like they "get" business, but their latest decision really confuses me. They struck a deal with Paul McCartney that allows them to get the Beatles' catalogue for the low, low price of $400 million. I understand that the band's music is valuable [just ask Panic At The Disco...] but I'm still confused... and here's why.
It's probably safe to say that this is not an investment that will pay off any time soon. Maybe in decades -- assuming MP3/iTunes/iPods are even the "thing" at the time -- but not now. And here's why. Most people who like the Beatles probably already have their music on their iPod, or at the very least, have the CDs, which they can just rip to their iPod, right? So why would they re-buy these songs when there is no need? It's not like iTunes purchases are of superior quality to the average CD rip. As such, I can't make any sense of this deal. Obviously McCartney and Ringo Starr, as well as the families of John Lennon and George Harrison are pleased. But how does Apple benefit?
I can see how someday, maybe, when the band's music isn't as easily transferable as it is now [such as when CDs are about as commonplace as cassette tapes], this will make sense. But right now? I just can't see people queuing up to buy the Beatles -- on iTunes -- finally. I have to be honest: when I buy music, I buy from iTunes as a last resort -- a "damnit, I can't find the album anywhere and I don't have the patience to mail order it and wait around for it" sort of moment. I hate that they limit how many times I can put the song on a CD [I like making mix CDs] or that you can accidentially delete the files and not recover them [as I did with two albums and two stand-alone songs last month.]
Maybe it's just me, though. Maybe they'll recoup that money quickly. I just can't help but think they could have done a lot more with $400 million than buy the Beatles' catalogue.
