Jobs believes that upping the price of music downloads will simply send customers back to another option; downloading music for free. He publicly said that maybe labels are getting too greedy. iTunes has sold 1 billion tracks now, with around 80% of all paid downloads being made through the service. Apple's share of the download price is isn't much, but iTunes drives sales of Apple's iPod music player.
"We're pleased to continue offering iTunes customers music at 99 cents per song from a library of over 3 million songs," a statement from Apple read. It isn't clear how long the contracts will last but it has been suggested that the labels would opt for short-term renewals and hope to try and convince Apple again soon. They could also hope that Apple's competitors become more successful and begin to bite into Apple's current share of the market.
Source:
MacNewsWorld
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Written by: James Delahunty @ 4 May 2006 17:24
