Downloading Music Gets More Expensive

In a movement 180 degrees opposite to what we've been reporting in
Europe and
Australia, five of the major music companies are
discussing hiking the price of digital downloads on new releases — to anywhere from $1.25 to as much as
$2.49.  According to this article yesterday on the WSJ several hot new-release albums already sell on Apple
iTunes for more than Amazon.com CD.

For months, digital-music services have been touting albums for $9.99 to entice more people to buy online. But
Apple Computer Inc.'s iTunes Music Store has been charging $16.99 for "Fly or Die," while Roxio Inc.'s Napster
service sells the 12-song collection for $13.99. Both prices are higher than the $13.49 that Amazon.com charges for
the CD itself. The same pricing shifts are showing up on albums by a growing slate of artists, from Shakira to Bob
Dylan.

In case you don't have access to the WSJ here's a NPD group chart showing some titles that are cheaper
on CD than when purchased in digital form.