Apple Computers wins the iTunes pricing war

Apple Computers wins the iTunes pricing war

Apple Computers has confirmed that they have finally managed to renew contracts with the four largest record companies to sell songs through its iTunes digital store.

The prices would continue to remain at 99 cents a song as the company had asked for. This is a major victory for the makers of the Apple iPod digital music and video player as they have managed to stop the music companies from raising the prices of the songs being sold on Apple iTunes.

Music companies were favoring a variable pricing model as per which newer songs were expected to be charged higher than the older songs. However, Apple was against it as Steve Jobs claimed that this would result in consumers going back to the piracy route to download songs from the internet.

Apple has now renewed contract with Universal, Warner Music, EMI, and Sony BMG. The company believes that 99 cents a song is simple and more viable price for songs sold on their digital music store and attracts consumers to buy songs legally from the internet.

Apple iTunes itself accounts for about 80 per cent of the US digital music market. They are the best example of how the digital music sales can someday replace the traditional way of selling music in Cassette and Audio CD format.