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View Full Version : iTunes to Vary Pricing And Go DRM Free


Hooch Tan
03-28-2009, 04:00 PM
<div class='os_post_top_link'><a href='http://news.digitaltrends.com/news-article/19587/itunes-variable-pricing-to-debut-april-7' target='_blank'>http://news.digitaltrends.com/news-...o-debut-april-7</a><br /><br /></div><p><em>"Under the new pricing scheme, most music tracks will still cost $0.99, but labels will be able to charge $1.29 for selected tracks&mdash;mostly hot new releases&mdash;and offer discounts of $0.69 on older library tracks."</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/dht/auto/1238248431.usr20447.jpg" style="border: 0px solid #d2d2bb;" /></p><p>iTunes is going to go through two significant changes in the coming months.&nbsp; Pricing is no longer going to be a $0.99 a song setup, with prices ranging from $0.69 to $1.29.&nbsp; I really hope that the record labels won't do what I would expect them to do, which is noting any song that's selling and put it in the $1.29 tier.&nbsp; Overall, I'm not sure whether this will be good for the consumer or not, but I can't think that the labels would push for variable pricing so much if they didn't see more profit in it for themselves.&nbsp; What is more notable to me is that by the end of the quarter, it is expected that iTunes music will go DRM free!&nbsp; While it seems the vast majority don't mind being locked down to specific devices, I think it'll just drive more traffic to the iTunes store with everyone now able to listen to their library on any device they want.</p>

Felix Torres
03-28-2009, 04:32 PM
Well, of course the labels expect to make more money from variable pricing.
The idea is to maximize the value of recent releases while the top-40 buyers are hot to trot *and* simultaneously maximize the return from the back catalog. Raising prices on recent releases isn't going to deter the crowd that absolutely must have the latest masterpiece from the diva of the week but dropping them on older stuff will induce a greater volume on last year's hits.
One size-fits-all pricing never made sense; all songs are not created equal so why have lesser acts subsidize sales of "superstar" acts?