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Tuesday, May 02, 2006

Apple and iTunes users 1 Music Industry 0

Way to go Apple! Being an iTunes user and music purchaser I'm pleased at Apple's negotiations. The music industry wanted variable pricing with more expensive hits and cheaper older tunes. Apple wanted to keep the basic 99¢ pricing. Apple won! I would have been pissed off if they had increased prices!

In recent months, executives at EMI, Sony, and other companies have been pushing Apple to adopt a variable-price model. Under that plan, new releases from popular artists would be priced at higher levels than older releases.

"Music labels would much rather have variable price, so they can charge more for hits and perhaps less for older tracks," said Ted Schadler, an analyst at Forrester. "Apple likes the $0.99 price because it is simple, uniform, not too high to discourage buyers, and very easy to administer and merchandise."

The differences of opinion about pricing led Steve Jobs, Apple's chief executive, to call the music industry "greedy" during a press conference last September. Jobs said that if the record labels want to raise prices, doing so would be motivated by greed rather than any interest in consumer benefit.

Jobs also indicated at the time that pricing needs to be low enough for legitimate music sites to compete with illegal file-sharing networks that allow users to download songs for no cost whatsoever.
Way to go Stevey baby!!!!