iTunes Ups The Price Of Big Tracks

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iTunes Ups The Price Of Big Tracks

March 26, 2009

iTunes will finally be experimenting with flexible pricing for music, which is something record labels have long been demanding from the online music store. iTunes plans to boost the price of many hit singles and selected classic tracks to $1.29, though most of the 10 million songs in the iTunes catalog are expected to remain at 99 cents. The date for higher prices has not been publicly announced, but Apple has been notifying record labels that it will go into effect on April 7, according to the Los Angeles Times. The store also will offer lower prices for some songs, below the typical 99-cent price point. The plan is for releases from new artists to receive lower pricing, while tracks from popular acts - both current and classic - would go for a higher rate.

Apple set the 99-cent-per-song rate in 2003 when it launched the iTunes Store, and for years the company has resisted pressure from the music industry to allow flexible pricing. However, Apple changed its tune in January, when it announced that it would begin selling music at three tiers: 69 cents, 99 cents and $1.29. In addition to flexible prices, the digital tracks will be offered free of anti-piracy software. Although many in the industry have been pushing for this change, some are criticizing the timing of the 30 percent price hike because it comes in the midst of a recession and at a time when spending for online music appears to have reached a plateau.

"This will be a PR nightmare," former EMI Music executive Ted Cohen, who is managing partner of digital media consulting firm TAG Strategic, told the Times. "It is for the music industry what the AIG bonuses are for the insurance industry."
 
This is dumb. We're in a recession & people aren't buying music like they used to so what's the solution?? Raise prices!!...lol.
 
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don't blame apple. they fought for years to get drm free music at 99 cents but the labels don't let them. this is why apple is making the point that the labels have the freedom to raise the price if they want.
 
I'm an Apple fan but the timing of this is completely off. I just hope this doesn't open the door for more price increase.

If I were Amazon I would promote a DRM free campaign with lower prices.
 
This is BS. I thought given the way things are right now, this idea would have been scrapped, but I guess not.

The labels are just digging their own graves.
 
Actually this is a normal thing. During a recession the only way to get more money circulating throughout the economy is to raise prices. I'm surprised it hasn't happend already. It's bad for those of us who don't have much money as it is (i.e me) but folks whose pockets is deep won't mind as much because they can dish out that kinda cash. Bad for the music industry, maybe. Good for the economy, maybe. I have no idea why apple is doing this though. Music industry tough as it is. I guess every little bit counts though.

Still, I think the only thing this would do is promote more piracy. If folks can't buy it, then they'll steal it.
 
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Shaudie said:
Actually this is a normal thing. During a recession the only way to get more money circulating throughout the economy is to raise prices. I'm surprised it hasn't happend already. It's bad for those of us who don't have much money as it is (i.e me) but folks whose pockets is deep won't mind as much because they can dish out that kinda cash. Bad for the music industry, maybe. Good for the economy, maybe. I have no idea why apple is doing this though. Music industry tough as it is. I guess every little bit counts though.

Still, I think the only thing this would do is promote more piracy. If folks can't buy it, then they'll steal it.
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what Economics class did u take?? nevermind... don't feel like gettin' in2 a "ur wrong" debate...nobody has money, raise the prices on everything...that'll make the money circulate and get people spending...u slept in class during econ 101 tho'...LOL
 
bluchippa5 said:
what Economics class did u take?? nevermind... don't feel like gettin' in2 a "ur wrong" debate...nobody has money, raise the prices on everything...that'll make the money circulate and get people spending...u slept in class during econ 101 tho'...LOL
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lol...what ecn class did I take? Maybe I didn't say what I was trying to say.
What I was trying to say is that raising prices is a way to keep a strong, solid business alive during a recession. Apple is not in any danger of going out of business so they can raise prices. They don't have to worry about losing alot of customers because they are a BIG BRAND. People trust them and they are comfortable with them. So those who are willing and able to spend it at the itunes store, will spend it at the itunes store. When companies are forced to raise prices because they aren't making an economic profit, that's bad.

Now, when you said "nobody has money, raise the pricese on everything...that'll make the money circulate and get people spending"
First off, not everybody is suffering from the recession. and no no no you don't raise prices on EVERYTHING. Only those things that you can. Raised prices causes consumers to look for alternative solutions. Other places for you to download music. Although Apple's Total Revenue shouldn't fall too much because of the other products they have, other music companies that are similar to Itunes use this as a way to get back on their feet. This would create balance. Businesses building back up, all the while allowing us not have to dish out extra cash for itunes songs, thus reestablishing the economony. Of course it takes more than just this but this is just a small part.
Apple's itunes was slowly becoming a monopoly because of how popular they are. I wouldn't be surprised if the government stepped in and told them to raise prices so that other companies can get business.

I may have left some of what I'm trying to say out since I got a crazy amount of ideas running through my head about this. But if you disagree with me, please tell me why, instead of trying to be funny and insulting me. That my friend was disrespectful. Back up what you say man, it's all good. ;)
 
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it's the hit titles that are going to be 1.29, many of the top 40 hits a bunch of folks on here dont wanna listen to anyway...Im more curious to know how many songs on itunes are going to be 69 cents...btw 69 cents is a hilarious price point since were talking music LMAO
 
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