does anyone know for a fact that apple picks the price points? it was my understanding that the labels were the ones that insisted on the variable pricing from apple.
Not sure who to "blame it on" per se, but I'm sure it means more money in both Apple's and the Labels' collective pockets. But if consumers don't bite, then it'll drop back to $0.99 guaranteed.
From http://www.apple.com/pr/library/2009/01/06itunes.html: "And beginning in April, based on what the music labels charge Apple, songs on iTunes will be available at one of three price points: 69 cents, 99 cents and $1.29, with most albums still priced at $9.99."
The choice of which price to use for a given song is determined by the labels, not Apple. Given what we've heard of the labels' negotiating history with Apple, Amazon, and other online music sellers, it's reasonable to assume that when iTunes charges more than Amazon for a given track, it's because the labels charged Apple more for it.
The major labels don't like that Apple earned a strong bargaining position against them (by actually building a product and service that customers wanted) and are using their position as monopoly rightsholders to undermine competition among online music stores. What happens if Amazon gets successful enough to try to negotiate pricing or terms changes from the labels? They'll just find another music store to prop up and give Amazon customers the shaft. What happens if some newcomer builds the Next Big Thing in music stores? Sorry, Amazon (or Apple, or Microsoft) is the labels' favored dog in this fight right now, so NextBigThing customers will have to pay a premium.
So, go on and buy from Amazon when you see a track that's cheaper there than on iTunes, but know that to do so isn't "sticking it to the man"... on the contrary, you're empowering the RIAA types who want more control over how you can buy music.
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does anyone know for a fact that apple picks the price points? it was my understanding that the labels were the ones that insisted on the variable pricing from apple.
Not sure who to "blame it on" per se, but I'm sure it means more money in both Apple's and the Labels' collective pockets. But if consumers don't bite, then it'll drop back to $0.99 guaranteed.
From http://www.apple.com/pr/library/2009/01/06itunes.html: "And beginning in April, based on what the music labels charge Apple, songs on iTunes will be available at one of three price points: 69 cents, 99 cents and $1.29, with most albums still priced at $9.99."
The choice of which price to use for a given song is determined by the labels, not Apple. Given what we've heard of the labels' negotiating history with Apple, Amazon, and other online music sellers, it's reasonable to assume that when iTunes charges more than Amazon for a given track, it's because the labels charged Apple more for it.
The major labels don't like that Apple earned a strong bargaining position against them (by actually building a product and service that customers wanted) and are using their position as monopoly rightsholders to undermine competition among online music stores. What happens if Amazon gets successful enough to try to negotiate pricing or terms changes from the labels? They'll just find another music store to prop up and give Amazon customers the shaft. What happens if some newcomer builds the Next Big Thing in music stores? Sorry, Amazon (or Apple, or Microsoft) is the labels' favored dog in this fight right now, so NextBigThing customers will have to pay a premium.
So, go on and buy from Amazon when you see a track that's cheaper there than on iTunes, but know that to do so isn't "sticking it to the man"... on the contrary, you're empowering the RIAA types who want more control over how you can buy music.