iTunes Store's new pricing scheme affects the charts, that Lightspeed Champion guy expresses surprise
By Joseph L. Flatley 
posted April 12th 2009 9:06PM
posted April 12th 2009 9:06PM
An interesting sidenote on the intersection of music and commerce: Billboard reported last week that the iTunes Store's new variable pricing plan has had a bit of an impact on sales rankings on individual tracks, giving $.99 songs an advantage over their $1.29 counterparts. According to the magazine, numbers for Wednesday, April 8, show that the iTunes Top 100 chart had 40 songs at the $1.29 price point, and 60 at $0.99 -- the premium songs slid an average of 5.3 places, while the $0.99 songs gained roughly 2.5 chart positions. On Thursday the trend continued, with the 53 songs priced at $0.99 rising roughly 1.66 places on the chart, while the remaining songs -- priced at $1.29 -- lost an average of two chart positions. None of which answers the most pressing question: When will Miley Cyrus's reign of terror come to an end?
look at this bad motherfucker.
stole 17k songs. sheeeeeeeeeeeeet.
I'm guessing half or all of it's 128kbps or below?
I hope that you work in an industry that makes some product that's as easy to steal as music so that you end up having trouble making ends meet, too. There are thousands of people in the music industry besides the artists and record execs. They do cover artwork, clean the floors in studios, run the machines that package CDs, manage websites for bands and labels, work IT, or any other number of odd jobs that are supported by the money you should be paying for that music.
Asshole.
@Chris Dunning
The average cost to make a CD package: 8 pg 4C booklet with cover art, cd case, the actually cd disc and the recorded songs are between $1.10 to $2.50 each. Then they are sold retail for $10 to $16. Even with this high % markup, it only covers 5 % to 10% of a record labels profits off that Band. It is just fluff money. Concerts, Merchandising and Rights to play the song(s) is where the real money is earned.
Now with Itunes, amazon or any mp3 site, cover art is minimal because it mostly photography and design done in house at the record labels. There is no physical package or cd to pay for. But you still have to pay a $1 for a song or $10 to $15 an album. Plus, you have to pay for the broadband to be able to download it. Keep in mind, Apple makes no money on itunes...most profits go the the record labels. Apple makes money selling ipods.
SO, who is really being screwed in the end here Chris?
BTW i work in the music industry.
>> "Apple makes no money on itunes..."
I found this... based on the old 99 cent pricing:
Wholesale cost (music): 69 cents
Network fees: 5 cents
Transaction fees: 10 cents
Operating expenses: 5 cents
Apple's profit per song: 10 cents
I am no longer buying any musics from iTunes, I'll just dl from torrent.
I've heard of torrents, but what's this itunes thing?
lol imagine if engadget had purposely written 'effect' just to watch the minds of the grammatically-conscious go crazy..
lord, you commenters can be bitches... I hate Miley!
A single song for $1.29 is way to much. I thought .99 cents was to much as it was. At $1.29 prices you might as well buy the CD where you have a physical Copy of it. With all the CD extras and just rip that. You jack the prices up and people go right back to stealing the music. I really blame it one the stupid F's that pay them $1.99-$2.99 Cell phone ring tone tracks. You get part of a crap sounding version of a song and pay crazy prices that you could just rip the music you already have and paid for and put on your phone yourself. I would never pay these prices. Personally I think it's a better deal for the $15 a month all you want Music with the ZUNE, with the bonus of what 10 MP3 tracks per month which basically almost covers the subscription costs for the month anyway. I may be off it prices a bit but still a better deal then ITUNES. I don't have either yet as I'm still XM Satellite Radio user, but if something happens that I loose that, I'd go with the ZUNE.
1) who writes the epic comments on here?
2) does anyone bother to read them, or just scroll straight past
Depends I guess.
I read it, does that count?
Common sense and Economics 101 should have told Apple and the greedy IRAA (who have strong support by Democrats) that such was going to happen. If anything, Apple should be going the opposite direction.
People, stop being sheep. MP3s are compressed songs by 5 to 10 times less sound quality than what you get on an actual CD and they want to charge you the SAME or more in some cases? Get the f#$* out of here. And you have to go out and buy a device and have internet service on top of the cost of the MP3s. Until Apple comes down to 25 cents an mp3 through some form of subscription like emusic has, they will never get a penny from me beyond my ipod and iphone.
This is all just the fault of the music pirates (it some intricate plot), and I'm sure that the RIAA will find somebody to sue to get their money back! To start with, they'll probably sue all the customers who bought the lower priced songs, for not buying the $1.29 tracks.
I'm a Zune Pass subscriber, and you guys are forgetting about channels that you can subscribe to. Zune DJ's update this playlist weekly, which you can listen to and add to your collection if you like it. And you're listening to the entire songs too, not 30 second previews.
I've discovered a LOT of new music via Zune Pass, either through channels, or mixview, etc.
Seriously, once you give Zune Pass a try, you'll never go back.