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All posts tagged "tiered pricing"


Wednesday, February 10, 2010

iTunes Sales Slump With Tiered Pricing

Posted by Jeff Campbell in "Apple Software (OS X)" @ 11:00 AM

http://www.tuaw.com/2010/02/10/act-...n-slower-sales/

"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.


Monday, March 30, 2009

Stock Up at iTunes Before Tiered Pricing Hits on April 7th!

Posted by Jeff Campbell in "Apple Software (iPhone/iPod Touch)" @ 10:00 AM

http://arstechnica.com/apple/news/2...-99-pricing.ars

"Apple is about to flip the switch on its tiered pricing model in the iTunes Store. Gone will be the blanket 99¢ track in favor of 69¢, 99¢, and $1.29 varieties. Not everyone in the industry agrees that this is the best idea, however."

And the switch is due to be flipped on April 7th, according to a bit of intel the Los Angeles Times picked up from "industry executives" that said Apple notified them the date was set. I'm glad they are at least dropping the DRM in conjunction with the tiered pricing, as announced by Phil Schiller in January at Macworld. This was the tradeoff for switching the pricing scheme apparently. The pricing is based on the relative "hotness" of the track, but I wonder if Amazon MP3 store is following suit? I suppose if the tiered pricing is a success they just might. If not, I'd imagine there will be people doing price shopping as they would for anything other product, myself included. Especially since Amazon MP3 Downloader makes it so easy to get the music into your iTunes library.


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