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
Interested in iPods? Check out and participate in our iPod discussion forums.
"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
Interested in iPods? Check out and participate in our iPod discussion forums.
