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April 8, 2009

Variable Pricing Hits Online Music Sales

The Apple iTunes store raised the prices on popular singles yesterday from $0.99 to $1.29.  The music industry has lusted over variable pricing as a way to squeeze more money out of new music.  Older catalog items may fall to $0.69 per track.  In return, consumers get DRM free music.  Ars Technica noticed that the price changes at Apple are reflected at other online stores, such as Amazon, though the pricing of individual items are not in lockstep with each other at each store.  Will consumers bite, or will they shop around for the cheaper songs at each store.  Or will they decide to wait until the buzz on a song is over hoping for a price drop.  Sure, it's only 30 cents, but some people go nuts over stuff like this.  Then there is the other option, P2P.  Yes, it's not legal like the stores, but legal stores haven't exactly killed off that part of the music universe.  An MP3 player, even the iPod, doesn't care where the music came from.  It should be interesting to see if this move leads to an uptick in consumer interest in online music purchases.

April 8, 2009 | Permalink

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