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Wed, Mar 17, 2010 - 04:52 PM EDT  —  AAPL: 224.12 (-0.33, -0.15%)  |  NASDAQ: 2389.09 (+11.08, +0.47%)

Apple flips switch on iTunes Store tiered pricing
Tuesday, April 07, 2009 - 04:38 PM EDT

"The era of one-price-fits-all-songs on iTunes came to an end Tuesday as Apple Inc., the Internet's dominant digital music retailer, began selling some of its most-downloaded songs for $1.29 apiece," Jessica Mintz reports for The Associated Press.

"Apple said in January that it would end its practice of selling all individual songs for 99 cents each and begin offering three tiers: 69 cents, 99 cents and $1.29," Mintz reports.

"Apple also did away with copy-protection technology known as digital-rights management, or DRM, [without which] the songs can be copied to any number of CDs, computers and music players, as long as those devices support the AAC encoding format Apple uses," Mintz reports.

"AAC, like the more widely used MP3 format, is a method of compressing large audio files while trying to preserve sound quality. Besides iPods, several media players can play back unprotected AAC files purchased on iTunes," Mintz reports.

Full article here.

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Apr 07, 09 - 04:44 pm Comment from: the other steve jobs

But the only reason iPods are popular is because of the unfair-FairPlay copy protection...

if apple would just put it out there like Plays For Sure, then others would destroy apple's dominating iPod.

Steve Jobs was being a total liar when he said that he wished he could get rid of DRM on the iTunes Music store - he secretly wants it to keep the iPod dominance going.



*pounds head on desk*

What the hell? ZuneTang must have snuck up behind me and possessed me there for a second.

Apr 07, 09 - 04:53 pm Comment from: DFG

It's a shame that the labels have used their insistence on DRM on iTunes as a lever to force variable pricing. Just like DRM, the labels have failed to understand what is in their own interests. Apple understood back in 2001 that the way to beat the theft of music on the internet was to offer a better service, which is why the iPod and iTunes have been so successful. But the labels still don't understand the market and are once again shooting themselves in the foot with this unpopular move.

Apr 07, 09 - 04:53 pm Comment from: Mr. Reeee

No loss. I've never bought any music from the iTunes Store and have no intention of doing so!

Apps are a different story... wink

Apr 07, 09 - 05:01 pm Comment from: Jay-Z

If they push too far, people will just go back to stealing. They don't want to admit that their primary competitor is piracy.

Apr 07, 09 - 05:02 pm Comment from: Cubert

My God!!! A journalist that gave a cogent explanation of AAC!

There is hope.

Apr 07, 09 - 05:07 pm Comment from: Jubei

Amazing. CNET, ZDNET and all those PC centric sites are pointing the finger on Apple. The poster on those site are also doing the same blaming all this on Apple. Labels are just sitting there laughing their asses off with their latest scheme to destroy iTunes/Apple.

Apr 07, 09 - 05:18 pm Comment from: Tyk

I don't know. $1.29 isn't a lot, but there's a mental hurdle of going from 99 cents to 1.29. At 99 cents, I'm more inclined to hit buy without giving it much thought... even though it's so little, once that 1 goes there, I'm less inclined to hit the buy button.

Probably just me...

Apr 07, 09 - 05:27 pm Comment from: eddy

Who knows? maybe we'll be surprised and find old favorite songs now only.69, and will sit back and feel good that we are saving .30

If record execs find a way to ruin itunes, people are not going to go back to buying cd's. They will just go back to piracy or better yet, those russian sites that sell songs for .10 each

Apr 07, 09 - 05:29 pm Comment from: dave

Unfortunately, it seems that Apple and/or the music labels have only 'flipped the switch' on two of the pricing levels, namely $0.99 and $1.29. Actually finding songs $0.69 [which, bizarrely, at least one label claimed would have 10 songs for every song at $1.29] seems to be quite difficult...

Of course, I have always claimed that this 'variable pricing' thing is just a marketing label for a 30% price hike.

Apr 07, 09 - 05:54 pm Comment from: Demon

It will take the Labels a little time to rest the prices on the tracks and the first move will be to up the prices on the current hits. Which is what they did.

Apr 07, 09 - 05:56 pm Comment from: Demon

But, they get all prices reset some day.

Apr 07, 09 - 06:21 pm Comment from: Brau

And here I thought Apple was all about shedding tiers.

Apr 07, 09 - 06:25 pm Comment from: Raymond in DC

eddy writes, "Who knows? maybe we'll be surprised and find old favorite songs now only.69, and will sit back and feel good that we are saving .30"

No such luck. At least, not yet. I checked Rolling Stones "Let it Bleed" album - 40 years old. Everything still $.99. I checked Van Morrison. Everything still $.99 - except Brown Eyed Girl, now $1.29. Indian Ocean - a band from New Dehli - also $.99.

Apr 07, 09 - 06:37 pm Comment from: NewtonsApple

I can't believe the MP3-AAC gap is as wide as it used to be, given EVERY iTunes music download is in AAC format. I haven't listened to an MP3 in years.

Apr 07, 09 - 06:40 pm Comment from: Alx

Yeah, Eric Clapton's "Wonderful Tonight" is $1.29!! Great "NEW" song!!!!

Apr 07, 09 - 07:00 pm Comment from: jeff

Every single song by Led Zeppelin is now $1.29...

just to make it clear, the music is 40 years old.

MDN Magic Word - example - as in, i'm giving you an "example" of how the record labels are taking advantage of apple in order to gain profits, and attract album buying.

Apr 07, 09 - 07:13 pm Comment from: Tom

AUS $2.20 for "I Can't Get No (Satisfaction)" ...

There are no R&D;costs that need to be recouped by the record companies on The Rolling Stones so it's just GREED.

Record labels have been screwing artists and consumers for too long ...

About time Apple just signed artists directly.

Apr 07, 09 - 07:37 pm Comment from: AP

It won't be long until we'll be hard-pressed to find a song for .99 cents.

Apr 07, 09 - 07:57 pm Comment from: Jake

Charging the "new hit" price for older songs BS!! And not putting out any $.69 songs is par for the course.
If users refuse to purchase the songs at the higher price, the music cartel will crumple like a house of cards. Two weeks is all it would take, a month at most. I'm doing it!

Apr 07, 09 - 08:09 pm Comment from: Virus Free!

"Apple said in January that it would end its practice of selling all individual songs for 99 cents each and begin offering three tiers: 69 cents, 99 cents and $1.29,"

First it was 99¢ for average quality bit-rate and copy protection.

Then came the $1.29 for the non-copy protected and higher quality bit rate.

Now it's a three tier system, with $1.29, 99¢ and 69¢ with no copy protection and higher quality bit rate.

It doesn't seem all that bad now, price as a signal though, the $1.29 songs would signal high volume of sales and or popularity.

Of course I suspect the labels will just go $1.29 for all their iTMS songs eventually to maximize anything they can get while giving other systems the 99¢ (or even lower) option.

"Apple also did away with copy-protection technology known as digital-rights management, or DRM, [without which] the songs can be copied to any number of...

As everyone should know, the songs are "tagged" with vital information to identify the owner.

Everyone should at least have one iPod "stolen" with a police report to prove it.

I suspect eventually the RIAA will come for the owners of music for those who somehow gained a copy of the owners music.

Heck, even the folks at the Apple store have a copy of my huge music library, I'm almost sure of it.

Apr 07, 09 - 09:14 pm Comment from: Mac_ATTY

2 Words: IMEEM & Pandora

who needs to buy ANY music when you have these services!

Apr 07, 09 - 10:05 pm Comment from: MarkyMark

"several media players can play back unprotected AAC files purchased on iTunes,"

Actually make that MANY media players; even my old Nokia phone can do it; so can lots of phones.

Apr 07, 09 - 11:55 pm Comment from: rattymouse

Where the hell are the 0.69 songs Apple??? Screwing the people again Apple?

Apr 08, 09 - 01:24 am Comment from: Digits McGee

I found four songs by The Temptations @ 69¢. So yes, there are a few scattered about.

Apr 08, 09 - 03:17 am Comment from: YoYo

Any proof that all longer songs now cost 1.29? That has been our strategy on SoundLoud store, three different prices depending on song lenght.

Apr 08, 09 - 07:33 am Comment from: LordRobin

Inflation, people. Did you really think that songs were going to remain 99c for all eternity while those cents continued to decrease in value?

Prices go up. It's the way of things.

------RM

Apr 08, 09 - 09:57 am Comment from: rattymouse

I am gonna hit the bit torrents today

Apr 09, 09 - 04:21 am Comment from: iWorker

LordRobin,

Inflation has nothing to do with it especially in an economic period of deflation. No this is the record companies trying to gouge their market while they still can.

Look, most new artists are now being signed up onto what is called 360 or 360 degree contracts. This means that the record companies will take over responsibility for all avenues of marketing…and music will just be another form of marketing.

The companies will market the acts, provide net marketing (including web design), t-shirt sales and even organise the gigs. For all of that they'll receive a cut.

When I heard about this I checked up with one of my label contacts and he confirmed all of this. So I asked him why they were still playing hardball with the punters and his comment was to the effect that they could still make money from copyright infringement. He also said that in a few years ALL lower bit rate music will be free and will be available via p2p and artists' web sites.

The real money is from signed t-shirts, signed cds, live gigs and higher bit rate music. And for the record I spent over twenty years in the music industry. Inflation…yeah right! Continuing price gouging is what it's all about.

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