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Apple Changes Pricing Model for iTunes Store Songs

7 Apr, 2009 By: Chris Tribbey


Apple’s offering of more than 10 million, DRM-free songs now looks a little different April 7 … at least at the checkout page.

As promised at Macworld in January, iTunes introduced its new pricing model, with songs available for 69 cents, 99 cents and $1.29. Previously, every song was 99 cents, but the new pricing model gives music companies the discretion on what they want to charge.

“We’ve worked with all the major music companies, as well as thousands of independents, and over the last six years we’ve had one pricing model for all songs: 99 cents,” said Phil Schiller, Apple senior product marketing executive. “And the music companies have told us they want more flexibility.”

iTunes remains the No. 1 source for music, ahead of Amazon.com, Wal-Mart and Best Buy.

“There may be some initial grumbling about higher prices, but consumers basically accept the premise of variable pricing,” said Russ Crupnick, entertainment analyst for NPD Group. “After all Apple has been doing this with movies; Twilight costs $14.99 in standard definition, The Parent Trap is $4.99.”

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