Record Labels Pleased With iTunes’ Updated Pricing Model

It was inevitable. The recent adjustments to iTunes pricing unveiled at Macworld were met with sighs from many attendees (although it was widely anticipated), and now, music labels are celebrating their victory over Apple’s longstanding 99 cent price point.

They’ve expressed to the AP that this development indicates that consumers are not “price sensitive” — suggesting that higher prices won’t deter buyers.

However, this might not be entirely accurate — since its launch, iTunes has maintained a 99 cent price for songs, despite constant complaints from record companies, and it has been hugely successful. Prices tend to increase over time across all products, and Apple’s introduction of a new pricing tier system could have been much more severe.

Record labels are likely to push popular tracks to the higher-priced tier, but this shouldn’t be seen as proof that consumers are indifferent to music pricing.

Moreover, even at $1.29 per song, purchasing a 10-song album for $12.99 remains more economical than the $16 to $17 prices that record labels previously demanded. Clearly, this change benefits the record companies, yet a platform like iTunes still offers a far superior deal for consumers compared to the traditional retail models of yesteryears like Sam Goody and Tower Records.

[Source: MacBytes]

.
Michael Rose

Andrew is a dedicated writer for TUAW, your go-to Apple news blog. With a keen eye for detail and a love for all things Apple, Andrew brings you the latest updates on iPhones, iPads, MacBooks, and Apple Watches. His insightful articles and reviews help readers stay informed about the newest features and innovations. When he’s not writing, Andrew enjoys exploring new apps and testing out the latest Apple gadgets. His commitment to delivering accurate and engaging content makes him a valuable member of the TUAW team.