iTunes and variable pricing

It looks like the record companies have given up trying to persuade Apple to adopt variable pricing in iTunes. I guess that shows where the power really is right now.

Personally, I think Apple's view is wrong this time. I absolutely agree that one simple price was the right thing to do when trying to kickstart the market, but it's been a few years now and with over a billion songs sold, consumers understand the principles of buying music online. I think that customers also understand the principle that a new Coldplay album or song has more value than a 20 year old filler track from an Ultravox album (with apologies to Ultravox fans everywhere...).

Variable pricing would allow a greater degree of flexibility in promoting back catalogue, and in my opinion would drive prices down while incressing volume sales - wouldn't that be good for everyone?

Posted by melvin | May 3, 2006 @ 9:34 AM | Comments (0)

 

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