Lazy Man and Money

IPodMeister: Trade your CDs for an iPod or iPhone… legally?

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CNet’s Cheapskate Blog is one of my favorite sites for technology deals and very much a daily read. They recently had this article on iPodMeister. They provide you with the labels for free shipping. You simply pack up your old CDs and get a new iPod, iPhone, or hard drive. They’ll even send you a DVD with all your music back for an additional cost (more CDs).

It sounds interesting, but I have a few questions and so did commenters:

  • Legality of Keeping Your old – The biggest thought in my mind is that once you sell your CD back to iPodMeister, it’s probably illegal for you to keep a copy for yourself or use their digitizing service (I use “probably” because I’m not a lawyer.) If you it were legal to keep copies for yourselves, we’d just recycle CDs on Craigslist all day. I’d pay $2 to get the used the CD and sell it back to someone else for what I paid after I copied it. The Right of First Sale was getting a lot of scrutiny in some states as far back two and a half years ago.
  • Value for Your CD Collection – One commenter pointed out that you are getting less than a dollar a CD (or less) in value when a pawn shop would give you $1-2. I’m not up on the pawn shop market for CDs so I can’t verify that.
  • Is iPodMeister affiliated with Apple? – Lastly (and least importantly), does iPodMeister have an affiliation with Apple? I ask only because they give out Apple products and use a derivative of the trademarked Apple iPod name in their name. Again, I’m no lawyer, just curious about these kinds of things.

The legality of the digitizing question is the big one for me. It just doesn’t seem right. Yet it seems that the Consumerist will interview them and not ask the question. Interestingly though the Consumerist asks for feedback from it’s readers on the service (largely implying that they don’t know if it’s a great deal either).

I have a pile of CDs back from my college days (Those BMG and Columbia House “deals” really got to me.) Though I’ve digitized all my CDs, I save space by putting them in binders and keeping the artwork and jewel case in the attic – of my old home in Boston. Because the service requires the artwork and cases, I couldn’t use it even if I thought it was legal. Oh well, I think I’d rather have proof of the official rights to the music anyway.

$5 MP3 albums from Amazon (Aerosmith, Death Cab for Cutie, James Taylor)

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If you aren’t in the mood for a foot-long sub at Subway (and who isn’t?), parlay that money into some good music from Amazon. I got an email about a $5 sale they are having on 50 of it’s MP3 albums. I thought it would be fun to click through and see all the no-name artists that they had there… except that some of them are quite popular. I did get a chuckle from The Raspberries (not to be confused with The Cranberries), but seeing Aerosmith’s Big Ones surprised me. It has 13 songs that got significant air play (some still do). Doing the difficult math, 15 songs for $5 comes out to about 33 cents a song. Take that iTunes!

Here are some other highlights:

There are more to choose from, but I’m kind of biased towards the Boston music: Aerosmith, James Taylor, even the Death Cab for Cuties album has a song called Lowell, MA on it. They had Dolly Parton, Kanye West, The Greatful Dead, and Etta James… something for everyone.

Go check out Amazon’s $5 albums.

Bundled Football Tickets, Video Game Systems, Music, and DVDs… Arrrg!

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Note To Businesses: Consumers Don’t like Forced Bundling of Products

bundles.jpgWith football season coming up, my thoughts have started to slowly turn to blocking, blind-side blitzes, and blackouts. Recently tickets for next seasons AFC Championship rematch, New England Patriots vs. San Deigo Chargers went on sale. Though it’s a mere 8-hour drive, I was prepared to call in and try my luck at getting tickets. Then a friend told me something that I couldn’t believe. In order to purchase tickets for that game, you must buy tickets for two preseason games (see press release for details). If you are unfamiliar with preseason football games, the games are of little interest to fans. Typically the coach doesn’t want to risk a big injury, so the players that will play 90% of the season only play 15% of the preseason game. Teams don’t necessarily try to win as much as they try to evaluate the talent on their roster.

If I were to try to get the Patriots tickets, I’d surely have to try to sell them or not use them. Driving 8 hours one way for each of the games doesn’t interest me – especially when one of them is the 4-12 Falcons from last year. I looked into the possibility of selling them, but a distant friend says that they generally only go for 25% of their face value. In the end, what the Chargers have done is carefully crafted a scheme to effectively raise ticket prices for the games in demand rather than lower the cost of the preseason tickets to a price that reflects the marketplace’s demand. It doesn’t sit well with me. I’d rather see them just charge different prices for the games. Maybe there are laws against variable ticket pricing or perhaps the NFL doesn’t allow it. Either way, this is effectively the same thing.

It’s not just football ticket bundling either. It’s also:

  • Video Game System Bundling – Often video game systems will be released with a game bundle included. If you want the system, you better like the games that are bundled. If you don’t, you might be waiting a long time to buy the system.
  • DVD Movie Bundling – One of my favorite shows is Buffy the Vampire Slayer. After releasing the seasons individually, they released Buffy the Vampire Slayer: The Chosen Collection. This 40-disc collection has one DVD of “exclusive, never before seen extras.” If you want the information on this DVD, you are going to have to pony up nearly $200. Sadly, I know a few people who will do just that.
  • Music – Greatest Hits Collections – I’ve fallen victim to this one myself. I used to love Aerosmith (still do, but not as fanatical as I once was). They have a couple of albums like Gems which is essentially a greatest hits collection. However, it adds the studio version of a song that was only previously released as a live version. They’ve repeated this formula a couple of times. It’s pretty common, because studio executives know that fans of the band will by the album for that one song. Of course things are different now with everyone using iTunes.
  • Cable TV – In order to get FX and ESPN, one is often forced to buy a package of some 300 stations. You want high definition and a DVR? Well that requires another higher level of programming. Consumers say they want to pay only for the channels they watch. Cable execs say that it would be expensive as the popular channels subsidize the more niche channels. It’s also good for them to say, “Your cable bill has only gone up 50% in the last 3 years and we’ve given you access to 300% more programming.” It’s just not programing that you care about.

It really comes down to money. Executives of companies have found some ways to get you and I to give them our money. They play with our emotions to make their sale. In some ways, I want to congratulate them on a well-devised plan. In the end, I have decided that such marketing has left a bad taste in my mouth. Perhaps that’s why the iTunes store has been so successful – it’s allowed people a way to escape the bundling of products.

Photo Credit: °Florian