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Apple keeps tight grip on iTunes 99c price policy

4 May 2006 17:24 by James "Dela" Delahunty | 9 comments

Apple Computer Inc. has managed to force the four major record labels, Warner Music, Universal, EMI and Sony BMG to accept that the single price for all tracks in the iTunes store is staying for now. The labels had hoped to use contract re-negotiations to introduce variable pricing to iTunes, which would see newer and more popular songs priced higher and less popular and older songs priced lower. Steve Jobs has commented in the past that the success of iTunes is proof that the single price for each track works.

Jobs believes that upping the price of music downloads will simply send customers back to another option; downloading music for free. He publicly said that maybe labels are getting too greedy. iTunes has sold 1 billion tracks now, with around 80% of all paid downloads being made through the service. Apple's share of the download price is isn't much, but iTunes drives sales of Apple's iPod music player.

"We're pleased to continue offering iTunes customers music at 99 cents per song from a library of over 3 million songs," a statement from Apple read. It isn't clear how long the contracts will last but it has been suggested that the labels would opt for short-term renewals and hope to try and convince Apple again soon. They could also hope that Apple's competitors become more successful and begin to bite into Apple's current share of the market.

Source:
MacNewsWorld

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Permalink to this article

iPod users avoiding iTunes Store (17 September 2006)

Apple to investigate 'iPod Sweatshop' claims (17 June 2006)

French consumer friendly DRM legislation gutted (3 May 2006)

Sony Music sued over royalty payments (1 May 2006)

Negotiations between Apple and record labels turning ugly (25 April 2006)

Will record labels force variable pricing on iTunes? (3 April 2006)

iTunes reaches 1 billion downloads mark (27 February 2006)

Warner Music Group CEO hits back at Steve Jobs (25 September 2005)

Steve Jobs blasts greedy record labels (20 September 2005)

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Discuss this article!
neo1000 (Junior Member) 4 May 2006 18:42
It should be 20 cents per song, that`s how you fight piracy. [ + quote]
rayman72 (Newbie) 5 May 2006 15:00
I agree 20 cents should be the max. [ + quote]
Ludikhris (Inactive) 6 May 2006 0:08
you guys are idiots. No matter how low the price is people are going to complain. If you learn economic modeling you'd realize pricing too low runs your profits into the ground. I bet if anything, they are already under the equilibrium price. If anything they should make the files so they are easily swapable into all MP3 players. That would inrease business. I hate having to burn a CDRW just to rip them out as MP3s so I can use them. [ + quote]
neo1000 (Junior Member) 6 May 2006 13:21
Oh ludikhris master of economics,i guess you`re one of those suckers who buys them at 99 cents.Keep supporting those greedy bastards. [ + quote]
ZippyDSM (AfterDawn Addict) 11 May 2006 7:17
the 99 cents is not so bad since I hate nearly all new songs...since 98 L,the thign thats stoping me is their stupid DRM I dont have an Ipod I dont want one,I want to paly the music where I want. [ + quote]
hermes_vb (Senior Member) 12 May 2006 13:14
Rule #1 People will ALWAYS complain. No matter if they charge 5 cents per song, some will cry "GREEDY BASTARDS". In an utopic world songs are free and my armpits smell like roses... I have an Ipod and love it, but I don't buy from Itumes mostly because of DRM and low bitrate. It's up to the people to decide if they want to spend their money on a 128 kbps song that will only play on a single device. Still, I think 99 cents per song is a fair price considering some people pay the same for a stupid ringtone for their mobile phones... [ + quote]
burndude (Inactive) 12 May 2006 17:44
I agree with neo1000. 20 cents for a song ripped at 128kb is plenty. I currently use www.alltunes.com to get my music. It's only 2 cents per MB which therefore works out at around $1.00 per album when ripped at 128kb but you also have the option to download in lossless or wav format. [ + quote]
ZippyDSM (AfterDawn Addict) 12 May 2006 18:03
hermes_vb Yaa 1$ a song aint that bad but tagging DRM on it blah skip the DRM and the R&D for DRM and songs could be 89cents a pop j/k L Altho it is the DRM thats stoping me,its like buying a Cable descrabler box I am already paying a month fee,getting all teh channles sounds nice but for 500$ for one that could be outdated andstop working at anytime its kinda pointless 0-o why do I ahve to find or buy un DRM stuff for MP3s I buy? its all dumb >< [ + quote]
ddp (Moderator) 13 May 2006 10:05
everybody, knock off the language & name calling or you'll not like the results [ + quote]