Filed under: Analysis / Opinion, iTS, Odds and ends, Apple Financial, Internet, iTunes, Apple
Record companies happy with new iTunes pricing (duh)
You knew this was coming. The iTunes pricing changes announced at Macworld got groans from most of us watching (even though I'm pretty sure it's more or less agreed that it had to happen sooner or later), but the record companies are taking time to do a little bit of gloating over the fact that they've finally broken through Apple's 99 cent barrier. They told the AP that the move means that customers aren't "price sensitive" -- in other words, we're OK with paying more for music.I don't know that that's true -- iTunes has had 99 cent songs since its inception, and even with the record companies crying and whining the whole time, it's been an amazing success. But prices go up eventually, no matter what product you're talking about, and if Apple had to raise prices, they could do a lot worse than adding a tier above and a tier below. Of course the record companies will want to put anything that sells on the top tier, but I don't think they can use that as evidence that consumers don't care what price they pay for music.
And let's keep in mind that at $1.29 a song, a 10-song album at $12.99 is still cheaper than the $16 and $17 record companies used to try and charge. There's no question about it -- this latest change is one in favor of the record companies, but a system like iTunes still seems worlds better for consumers than the old Sam Goody/Tower Records retail store system.
[via MacBytes]
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Reader Comments (Page 3 of 3)
Skunk Ape said 3:45PM on 1-15-2009
Hopefully the indie labels will still keep the music at .99 cents or less. I try to avoid buying music from major labels as best I can because they're a bunch of punk bitches w/ a very, very rare good cd. The indie labels are what produce good artists. So here's hoping they don't sell out.
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Andrew said 4:12PM on 1-15-2009
Our label will keep singles at $0.99 or even lower. However, we do have some artists that produce singles (single track EPs) that are in the 10 to 25 minute range which we will most likely charge more for. That said, not all artists who sign to a major label are bad, in all reality and tragically they are being exploited. It is usually the up and coming groups who sign multiple record deals with deceptively large cash advances attached that do the worst. For artists that are already filthy rich this doesn't concern them, their contracts are tooled to serve their fanbase and the whims of the artists. With a few notable and very public exceptions, Prince being one of them.
The old major record label system needs to and will shrink in its relative power and relevance. Labels used to have a major role in developing talent - they rarely care about this any longer. Unless you count American Idol and Star Search representatives of valid cultural development, labels more or less expect bands/artists to appear fully formed with a decently recorded, even produced demo, ready to tour and with an already installed fan base. Some of the best indie labels today take an active role in the growth and health of the musicians and music and ultimately this leads to invention and progress artistically.
reallycrazyguy said 4:10PM on 1-15-2009
You can kiss bargain hunting by going to other music stores goodbye. They were only cheaper and DRM-free to try to get people to use them instead of buying from the iTMS (to get leverage on Apple, so Apple would budge on $0.99/song). Now that they have their 30% price increase, you can bet the other music stores (which already caved on variable pricing up front) will suddenly find prices will be remarkably similar to Apple's new prices.
The $1.29 will not be just for the hot new single. It will be for the songs that were 'the hot new single' at any time in the past. Anything you want to buy will be $1.29, and anything that you preview that makes you go 'huh?' will be $0.69.
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dallasward007 said 11:11PM on 1-15-2009
I used to like the iTunes music store. However the inability to buy every song ala carte. The "album only" thing bugs me.
This turns me off even more.
In the digital age one song is essentially worth the same as another. I don't see the point of variable pricing from a consumer stand point. Then again, the record companies have been anti-consumer for decades.
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Nourez said 12:15PM on 1-19-2009
Honestly, they think INCREASING the price of music will stop piracy? I mean, I'd never buy an album on iTunes. 10 bucks for 128kbps isn't worth it at all. For the same price, I could pick up a physical CD and rip lossless. Now, we're gonna be paying 12.99 for a lower quality file? No thanks, I'll stick with my CDs.
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