Apple may win battle for iTunes pricing

Written by Wil Harris

April 21, 2006 | 13:31

Tags: #downloads #itunes #music #pricing #steve-jobs #universal #warner

Companies: #apple

Reports suggest that the pricing for songs on Apple's iTunes service will not be changed, contrary to previous rumblings.

The record industry in the US - including labels such as Warner, Universal and Sony - is currently renegotiating its deals with Apple. The labels want to be able to make more money off new tracks and were offering to cut the price of older tracks as compensation. Their model was that back catalogue tunes could cost as little as 60 cents, whilst new material could as much as double in price, up from 99 cents to 2 dollars.

Apple, with Steve Jobs at its helm, has been resistant to this idea. Downloads from the iTunes service now make a big difference to the latest charts in both the US and the UK, and an increase in price for new downloads could see growth of the service slow.

The New York Post is suggesting that Apple has successfully wielded its mighty clout, and that pricing is going to stay as it is, at 99 cents for all tracks. Labels had previously threatened to remove their tracks from iTunes, but it seems that the threat rang hollow - we're quite sure that Apple pointed out that iTunes is by far the most popular legit download service for music.

Do you use iTunes? Would you prefer to see variable pricing or are you happy the way things are? Let us know what you think of the decision over in the forums.
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