Apple Thoughts: iTunes Sales Slump With Tiered Pricing

"Warner Music revealed on Tuesday something we've all long suspected: music sales have witnessed a growth slump on iTunes since the record labels pushed Apple to implement a variable or tiered pricing model."

Price goes up, demand goes down, not sure why they thought it would be any different with music than other goods in the mostly free market economy they operate under. Warner saw a 50% decline in revenue for their quarter ending in December 2009 so perhaps they will rethink their pricing. I have my doubts based on how they have done things in the past. I'm interested to see how this will work in the e-book field over the next year though.