iTunes Raises Hit Single Prices To $1.29

Black Superman · 03-30-2009, 04:28 PM

When iTunes announced in January that it was planning to offer music at variable prices [click to read], it was not clear when the change would happen, or if it would happen at all. However, according to The Los Angeles Times, iTunes is moving forward with the plan, boosting prices of hit singles to $1.29.

Although the higher price of select singles will lower the price of other songs (new artist releases dropping to 69 cents, and current releases remaining at 99 cents), a few music label execs are criticizing the 30% increase.

“This will be a PR nightmare,” said former EMI Music executive Ted Cohen. “It is for the music industry what the AIG bonuses are for the insurance industry.”

With CD sales declining drastically, iTunes is hoping that the variable-pricing strategy will help to increase revenue in the music industry. Yet, in a period where online music spending is low and consumers are being hit hard by a recession, some music industry vets are questioning whether the decision to raise prices is a wise one.

“Wouldn’t it make sense to try to price it cheaper instead of squeezing the handful of people who are still willing to pay for music?” said Jim Guerinot, manager to bands such as No Doubt and Nine Inch Nails.

Others believe that the change is a smart business move, drawing their opinions strictly from the economic foundations of supply and demand. Russ Crupnick, a senior analyst for NPD Group said, “If you’re not drawing new people and your spending isn’t growing, it’s a natural part of the product life cycle” to raise prices.

As a trade-in for flexible prices, iTunes will offer DRM-free music. This means that consumers will be able to play purchased music on devices other than their iPods and other Apple devices. It remains to be seen whether the benefits of DRM-free music will trump the benefits of the 99 cent purchase.

The variable-pricing system will go into effect on April 7th.

hiphopdx

YoungRa · 03-30-2009, 04:34 PM

its a fuckin recession fuck I Tunes
they said this would increase revenue in hip hop
they aint doin shit

tonymontana45 · 03-30-2009, 04:39 PM

All that will do is push people away, I agree with the manager to No Doubt, they should give lowering prices a shot, it might get more customers then raising prices will

Ciya · 03-30-2009, 04:51 PM

and they wonder why we bootlegging music

El Scorpio · 03-30-2009, 05:08 PM

who the fuck buys shit on iTunes anyway?? I only buy CDs I know are good and then I want it with the case and all but costs like $18 in Switzerland for 1 CD

THA WEATHA MAN · 03-30-2009, 07:31 PM

Didn't buy off Itunes anyways so doesn't matter to me.

Quote:

All that will do is push people away, I agree with the manager to No Doubt, they should give lowering prices a shot, it might get more customers then raising prices will

^I agree with this though.

YTG_Bank$ · 03-30-2009, 08:07 PM

lol i saw that coming..
just didn't know it'd be this fast..

well i've never bought a thing from iTunes..

BrebYayo · 03-31-2009, 01:18 AM

i dont buy off itunes either..but it would make more cents to lower the price durin these tough times..then raise it up later when economy gets straight again

Seatown · 03-31-2009, 02:04 AM

they need to be doin a subscription like zune that would make shit a whole lot better

chickenwings · 03-31-2009, 02:54 AM

i wonder what genius at itunes actually thought raising the price was a good idea. good luck tryin to justify it by takin off drm which people can get around anyways

Smithilberry · 03-31-2009, 03:16 AM

“Wouldn’t it make sense to try to price it cheaper instead of squeezing the handful of people who are still willing to pay for music?” said Jim Guerinot, manager to bands such as No Doubt and Nine Inch Nails.

^^^^^^^^^^^^^^^^real talk

GMNRecordsCT3 · 03-31-2009, 08:54 AM

So... the artists are gettin more now...

jasmine2008 · 03-31-2009, 04:50 PM

i dont buy off itunes either but that is a stupid decision...less people will buy from them and start buying from other places or just download illegally

03-30-2009, 04:28 PM	#1
Black Superman Show Time Join Date: Feb 2007 Posts: 1,588 Repped: 259 Repped 5,423 Times in 619 Posts Neg Reps: 0 Neg Repped at 11 Times in 9 Posts	iTunes Raises Hit Single Prices To $1.29 iTunes Raises Hit Single Prices To $1.29 When iTunes announced in January that it was planning to offer music at variable prices [click to read], it was not clear when the change would happen, or if it would happen at all. However, according to The Los Angeles Times, iTunes is moving forward with the plan, boosting prices of hit singles to $1.29. Although the higher price of select singles will lower the price of other songs (new artist releases dropping to 69 cents, and current releases remaining at 99 cents), a few music label execs are criticizing the 30% increase. “This will be a PR nightmare,” said former EMI Music executive Ted Cohen. “It is for the music industry what the AIG bonuses are for the insurance industry.” With CD sales declining drastically, iTunes is hoping that the variable-pricing strategy will help to increase revenue in the music industry. Yet, in a period where online music spending is low and consumers are being hit hard by a recession, some music industry vets are questioning whether the decision to raise prices is a wise one. “Wouldn’t it make sense to try to price it cheaper instead of squeezing the handful of people who are still willing to pay for music?” said Jim Guerinot, manager to bands such as No Doubt and Nine Inch Nails. Others believe that the change is a smart business move, drawing their opinions strictly from the economic foundations of supply and demand. Russ Crupnick, a senior analyst for NPD Group said, “If you’re not drawing new people and your spending isn’t growing, it’s a natural part of the product life cycle” to raise prices. As a trade-in for flexible prices, iTunes will offer DRM-free music. This means that consumers will be able to play purchased music on devices other than their iPods and other Apple devices. It remains to be seen whether the benefits of DRM-free music will trump the benefits of the 99 cent purchase. The variable-pricing system will go into effect on April 7th. hiphopdx __________________ HH Board's Top 5 or Better... Who Hotter Than Me? HIT DA REP OR CLICK THE GREEN

03-30-2009, 04:34 PM	#2
YoungRa M.O.B Join Date: May 2007 Location: Southside Jamaica Queenz And Amityville Posts: 861 Repped: 16 Repped 933 Times in 183 Posts Neg Reps: 0 Neg Repped at 9 Times in 9 Posts	its a fuckin recession fuck I Tunes they said this would increase revenue in hip hop they aint doin shit __________________ It's The Official Young Ra Page Add My Myspace myspace.com/youngra157

03-30-2009, 04:39 PM	#3
tonymontana45 Join Date: Jan 2006 Posts: 933 Repped: 306 Repped 170 Times in 37 Posts Neg Reps: 56 Neg Repped at 3 Times in 3 Posts	All that will do is push people away, I agree with the manager to No Doubt, they should give lowering prices a shot, it might get more customers then raising prices will __________________

03-30-2009, 04:51 PM	#4
Ciya Veteran Join Date: Nov 2006 Location: Where Benz,BMW,Porsche..... from/Bremen City Posts: 7,157 Repped: 2,388 Repped 1,293 Times in 318 Posts Neg Reps: 7 Neg Repped at 37 Times in 28 Posts	and they wonder why we bootlegging music __________________ A Girl Ask Me For A Ring And I Put One Around Her Whole Eye - Big L

03-30-2009, 08:07 PM	#7
YTG_Bank$ Super Moderator Join Date: Oct 2006 Location: - Texas - Posts: 10,534 Repped: 2,788 Repped 20,061 Times in 1,827 Posts Neg Reps: 5 Neg Repped at 23 Times in 19 Posts	lol i saw that coming.. just didn't know it'd be this fast.. well i've never bought a thing from iTunes.. __________________

03-30-2009, 05:08 PM	#5
El Scorpio Veteran Join Date: Aug 2005 Location: Switzerland (but from UK) Posts: 8,922 Repped: 1,350 Repped 867 Times in 279 Posts Neg Reps: 2 Neg Repped at 3 Times in 3 Posts	who the fuck buys shit on iTunes anyway?? I only buy CDs I know are good and then I want it with the case and all but costs like $18 in Switzerland for 1 CD

03-31-2009, 01:18 AM	#8
BrebYayo NEW B Join Date: Jul 2005 Location: NEW B Posts: 1,964 Repped: 601 Repped 184 Times in 79 Posts Neg Reps: 0 Neg Repped at 3 Times in 3 Posts	i dont buy off itunes either..but it would make more cents to lower the price durin these tough times..then raise it up later when economy gets straight again __________________

03-31-2009, 02:04 AM	#9
Seatown Veteran Join Date: May 2006 Location: Sea-Town Posts: 2,162 Repped: 715 Repped 49 Times in 35 Posts Neg Reps: 21 Neg Repped at 7 Times in 4 Posts	they need to be doin a subscription like zune that would make shit a whole lot better

03-31-2009, 02:54 AM	#10
chickenwings Veteran Join Date: Nov 2006 Posts: 4,599 Repped: 608 Repped 679 Times in 404 Posts Neg Reps: 505 Neg Repped at 224 Times in 166 Posts	i wonder what genius at itunes actually thought raising the price was a good idea. good luck tryin to justify it by takin off drm which people can get around anyways

03-31-2009, 03:16 AM	#11
Smithilberry A.K.A. ZANY BLUNTS! Join Date: Oct 2004 Location: Qu€€n$ N€w ¥ø®k B!TcH€$! (718) Posts: 14,047 Repped: 2,096 Repped 1,231 Times in 673 Posts Neg Reps: 102 Neg Repped at 175 Times in 131 Posts	“Wouldn’t it make sense to try to price it cheaper instead of squeezing the handful of people who are still willing to pay for music?” said Jim Guerinot, manager to bands such as No Doubt and Nine Inch Nails. ^^^^^^^^^^^^^^^^real talk __________________ A.K.A. Master Sensei Zany

03-31-2009, 08:54 AM	#12
GMNRecordsCT3 Macaroni wit the Cheeesse Join Date: May 2005 Location: Wash Heights, NYC Posts: 17,615 Repped: 6,784 Repped 2,310 Times in 619 Posts Neg Reps: 203 Neg Repped at 50 Times in 40 Posts	So... the artists are gettin more now... __________________ myspace.com/bummydavis - soundclick.com/gmnproductions "The name on my car insurance is YOUR FUKIN FAULT!!"

03-31-2009, 04:50 PM	#13
jasmine2008 Join Date: Sep 2007 Location: Port City, NC Posts: 287 Repped: 9 Repped 39 Times in 15 Posts Neg Reps: 0 Neg Repped at 2 Times in 2 Posts	i dont buy off itunes either but that is a stupid decision...less people will buy from them and start buying from other places or just download illegally __________________

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