updated 03:40 pm EDT, Tue October 16, 2007
iTunes Plus now $0.99
Apple says it will reduce price of its DRM-free songs on its iTunes Store to 99 cents from $1.29, making it more competitive with Amazon.com, Wal-Mart Stores and other rivals in online music. In an interview, Apple CEO Steve Jobs said all iTunes Plus music, will feature the reduced price later today or tomorrow. iTunes Plus offers songs without digital rights management, or DRM, anti-copying software: so far, the only major label to cut a deal on DRM-free songs is EMI Group Plc, but Apple has also already begun adding new music to iTunes Plus from independent recording companies at 99 cents a song, according to the Wall Street Journal.
"It's been very popular with our customers, and we're making it even more affordable," Apple's CEO said in an interview cited by the WSJ.
Apple launched iTunes Plus with music from EMI in May at a 30 percent premium that standard iTunes songs, which are can be played back on any number of iPods, but are limited to five authorized computers.
Although Apple has continued to enjoy success in music sales--now the third largest music retailer--Amazon and Wal-mart have tried to gain market share with lower pricing for DRM-free songs. Amazon offers music for as low as 89 cents a song and has a wider selection of DRM-free music, the report said. Wal-mart sells music for 94 cents a track, but both have failed make inroads into iTunes' dominance.