Apple might get their way with record companies on iTunes pricing

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April 22nd, 2006 Leave a comment Visited 27 times, 1 so far today

Apple might get their way with record companies on iTunes pricing

Apple Computers is the market leaders when it comes to selling digital music on the internet. They are also the largest seller of digital music players around the world. This gives them immense powers to take on the music companies.

Record companies around the world were hoping that they would get Apple to agree to variable pricing scheme for the songs sold on the Apple iTunes digital store. However, with just 2 days left for their earlier signed deal to end, Apple might just get what they want… 99 cents per song.

Apple has been against variable pricing, as they believe that the consumer would hate the idea of paying extra for some songs. They even claimed that increasing the prices of new songs would result in people resorting to piracy. Music companies on the other hand claimed that some songs are indeed worth a few cents more and new songs should be priced more than old songs.

There is a possibility that no contract might be renewed before the end of the previous ones and the companies might continue discussing their stand with Apple. This would enable them to move out anytime resulting in unavailability of their songs on sale on Apple iTunes. iTunes users won’t like that situation to happen. Nevertheless, Apple is firm on their stand, which in the end is good for the consumer.





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