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Filed under: Analysis / Opinion, iTS, Multimedia, iTunes

Billboard: iTunes prices up, sales down

I coulda told you this, though I am a little surprised that we've seen the results so fast. Despite iTunes having put the new tiered pricing into effect just last week, Billboard is reporting that they've already seen sales drop on the higher-priced tunes. The iTunes Top 100 chart has 40 different songs with a new price of $1.29, and one day after the changes, those songs dropped an average of 5.3 places on the chart, while cheaper songs moved up on average. And on the second day of the price change, ten of the tracks that saw their prices rise within 24 hours dropped a huge 12.4 chart positions on average.

Of course, we're talking only a matter of days here, and there are all kinds of things that could have affected this average drop -- lots of the tracks that became expensive were from a Rascal Flatts album, and it could be just that the album has lost popularity, bringing the average down. And don't forget that even though these sales figures may be dropping, they haven't dropped nearly enough to show a loss of revenue (though fewer songs may be selling, they're still making more money).

But for those convinced that higher prices mean lower sales numbers, these first few days of figures will seem to connect all of the right dots. We'll have to wait and see if the long-term effects match up to the figures Billboard has seen so far.

Filed under: Macworld, iTS

iTunes pricing and DRM schemes updated for 2009

Phil Schiller today outlined Apple's new pricing scheme for iTunes music, and announced additional music that will be available DRM-free.

In April, depending on the label, songs will be available at three price points: 69 cents, 99 cents, and $1.29. Apple says many more songs will be priced at 69 cents than $1.29, but new releases will likely cost more. Albums will mostly remain at the $9.99 price point.

69 cent songs will have greater restrictions on how they can be used: For each song, users will only be able to download it to one Mac, burn it to one CD, and copy it to one iPod. Turns out this was idle speculation from one of our colleagues, and not part of the changes today. Sorry about that. -- RP

More songs will be also be made available as part of the iTunes Plus program, which features higher-quality, DRM-free music files. Eight million (of 10 million total) songs will be available through iTunes Plus today, and every track will be available DRM-free by the end of March. (Thanks, Chris!)

iPhone users that connect to the Internet via 3G also got good news: They will be able to connect to the iTunes store via both WiFi and 3G starting today. Update: Others with first-generation iPhones here in the Media Center report that the iTunes store appears to work over EDGE, too, but weren't able to test it.

As many expected, Schiller announced new sales figures for the iTunes store, saying Apple has 75 million accounts, and is now the number-one music retailer in the United States.

Tip of the Day

Holding the Command key (aka the Apple key) and pressing Tab will cycle through your open applications. It's easier to Cmd-Tab if you are Copy (Cmd-C) and Pasting (Cmd-V) to and from various applications.


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