2006 iTunes price increases?
Tags: Music, Apple, Napster, Microsoft, Marketing
Macworld UK today has an article noting that Apple is going to have to renegotiate its digital music contracts next year, and that the labels plan to ask for more money than they are currently getting. This should be interesting, since iTunes has now sold more than half a billion songs that have been pure profit to the music labels. The question is who has the market power in this case. After all, there are a lot of digital music choices, including piracy and CD-ripping, as well as other music stores with different digital rights for consumers to choose from. I believe that Apple will largely stick to its price point, but will accommodate some tracks at higher prices, but won't sign up for a uniform $1.29 or such track price. Then consumers will get to vote with their wallets how much value they see in digital DRM'ed tracks.
Macworld UK today has an article noting that Apple is going to have to renegotiate its digital music contracts next year, and that the labels plan to ask for more money than they are currently getting. This should be interesting, since iTunes has now sold more than half a billion songs that have been pure profit to the music labels. The question is who has the market power in this case. After all, there are a lot of digital music choices, including piracy and CD-ripping, as well as other music stores with different digital rights for consumers to choose from. I believe that Apple will largely stick to its price point, but will accommodate some tracks at higher prices, but won't sign up for a uniform $1.29 or such track price. Then consumers will get to vote with their wallets how much value they see in digital DRM'ed tracks.
posted by Carl Howe at
10:14 AM
| View blog reactions
| 
