digital music/video
08/05/2005, 11:00am, EDT
Friday, August 5th
Apple to raise iTunes prices in 2006?
Apple may be forced to raise song prices at the iTunes Music Store next year, according to a report from Japan. "Japan's Nikkei recently reported that record labels have been 'abuzz with talk about Apple's 2006 problem'. That refers to label licensing renegotiations scheduled for next year... Specifically, labels have been pushing Apple to increase its current fixed a-la-carte pricing structure in the US, Canada and Europe." Apple's two-tiered approach used in Japan may foreshadow possible increases, while at the same time bolstering the labels' case for higher pricing; however, for now, Apple's lower pricing in Japan has forced some of its main competitors in the region--Sony's Label Gate, Yahoo Japan and Excite--to lower pricing. The report says that Apple's licensing of its FairPlay DRM will also be an issue, as labels have recently begun shipping copy-protected CDs that are not compatible with the popular iPod.
Filed under: industry
Other story tags: digital music/video
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What? What do you mean they won't cut the low end, and just raise the high-end? That can't be right. That would be like trying to suck as much money out of the music buying public. And that doesn't sound like the record industry to me...
As for Fairplay, Apple better get on board somewhere, because too many newer CDs (so I heard, since all the good music is 10+ years old, I don't worry about it much) are copy protected, you're basically between a rock and a hard place on what you can buy and where you can use it.
perhaps apple can 'buy direct', or has that been the longer term 'garage band' plan all along...?
For me, a $12 CD and a $10 electronic download compare well. I refuse to pay more, and thus muss a lot of new soundtracks. I figure that if Apple and each of the labels gets a list of specific purchases, and specific purchases rejected, because of cost, they may factor this into their pricing plans.
Marketing executives often work completely in the dark, so letters with real dollar amounts are often very convincing.
Scott
The record industry continues to prove that it is one of the stupidest, most greedy industries around. Raising iTunes prices is only going to kill this market, I'm not buying at more than .99 cents... sorry. And I've not bought one single CD in what, the past two years? Sorry, I'm not going to start buying CDs again either. In fact, I really can't, as all the CD stores in my area have gone out of business.