Nine Inch Nails frontman urges fans to steal music

Billboard reports today that Nine Inch Nails frontman Trent Reznor has urged Australian and Chinese fans to steal his music, due to the high cost of obtaining the band's newest album in those regions. Apparently, the Year Zero album costs the equivalent of $30 in Australia. Reznor urges fans to buy internet downloads and simply share them among friends.

This is not the first report about the feelings Reznor has had about his record label, Universal Music Group, and the pricing of Year Zero in Australia, but it is the first instance of the artist urging fans to illegally obtain the album. Incidentally, Reznor is not the first artist to advocate the piracy of music. Undoubtedly, Universal is unhappy about the situation, but Billboard does not offer any counterpoint. Late last month, Universal and NBC pulled their television shows from Apple's (NASDAQ: AAPL) iTunes Store because negotiations about pricing fell through. Universal Music's negotiations with iTunes fell apart in July, without the renewal of a one-year contract and the introduction of ad hoc availability for UMG music.

The Reznor/NIN situation highlights that the perceptions that record labels can successfully dictate prices are entirely accurate. The key word is successfully there, so keep that in mind, because Reznor may be an isolated case, but you can be sure that he is not. At the same time that Universal is struggling to control prices, iTunes apparent low prices are coming under attack by new digital stores like the one from Wal-Mart (NYSE: WMT), which beats iTunes by about $.11 on single track downloads. Just imagine what might happen when the new Amazon.com (NASDAQ: AMZN) digital store becomes operational later in the year...