iTunes Charging more than $0.99 per track?

by Raakin Iqbal

Well I am not sure if my fellow iTunes users have noticed but the upcoming tracks have been converted to “iTunes + {Plus}” and the price has been increased from $0.99 to $1.29 a track!. Now I quite do not get the philosophy of why iTunes would do that. IN some sense I would see iTunes or Apple (what ever you prefer) taking advantage of there 80% market share. But it seems that its a risk that iTunes should have NOT taken.

In recent reports it shows that Amazon mp3 has taken away 25%+ away from iTunes within 2 years. Which Napster, Rhapsody still hasent in there longer existence. If you didn’t know, Sony attempted to take a Pie from the market but failed miserably…Shall I say Wasted Investment…

I saw this quote on a LA-Times Article and thought I’d do a pop-out for it…

“This will be a PR nightmare,” predicted former EMI Music executive Ted Cohen, who is managing partner of digital media consulting firm TAG Strategic. “It is for the music industry what the AIG bonuses are for the insurance industry.”

In 2008, Digital Music Downloads reached a industry hgh of $1 Billion. I personally believe that the record amount of people who have stopped downloading music on pirate networks will start up again. Its basically the Bully @ lunch time trying to take more cash out of you. ..

Apple Claims the new price hikes gives Record labels a way to create bigger discount packages for there consumers. But according to the LA-Times, about 30% of record labels are against this price hike.

But in the general sense its a “variable” pricing. Tracks will be prices in 3 different categories.

– $0.66
– $1.29

Obviously the most demanded and new tracks are $1.29 and the least are $0.66.

Well its something to see what happens, but I think this stunt is going to give AmazonMP3 more market share because of there $0.89 per track.