AfterDawn: News

iTunes price change is hurting tracks

Last Tuesday, Apple's iTunes went DRM-free, but at the same time began charging more for new hit singles, $1.29 USD, up from the standard $0.99.

Two days ago, Amazon and Wal-Mart followed the move by upping the price of new tracks by 30 cents as well, to $1.29 on Amazon, and $1.24 at Wal-Mart. Apple now sells older tracks for 69 cents, 99 cents for most new tracks, and $1.29 for the biggest new hits.



It appears, in what can only be described as a "shocking" development, that the rise in prices is hurting sales of the more expensive tracks, and could eventually lead to less revenue as well. These conclusions, from Billboard are only based on two days of data however, and are obviously subject to change. So far, the higher priced songs continue to lose chart positions to lower price songs.

On average, $1.29 songs lost 5.3 places on the Top 100 sales chart, while $0.99 songs gained 2.5 spots. A few of the songs that were initially $.99 on Tuesday but changed to $1.29 on Wednesday lost an average 1.9 places, while those that remained $1.29 for both days lost a huge 7.7 average positions.

The same trend was seen on Thursday with the more expensive tracks losing even more spots, an average of 12.4.

You can view the report here: Billboard


Written by: Andre Yoskowitz @ 11 Apr 2009 21:44

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• 10 comments

• khmernize

  I wonder how long before Apple will reduce their price back to the orginal price and keep everything DRM free.

  11.4.2009 22:04 #1

• ThePastor

  So, this will basically render the Top 100 lists useless... (it's about time!)

  11.4.2009 23:14 #2

• xnonsuchx

  Originally posted by khmernize: I wonder how long before Apple will reduce their price back to the orginal price and keep everything DRM free.It's not Apple...it's the record companies. Apple wanted to keep everything 99 cents, but the record companies would only agree to the DRM-free, higher quality encoding if they would charge more for new singles. What I wonder now is that since 'deep tracks' are now 69 cents, if people will be upset if those go back to 99 cents if they go back to how it was.

  12.4.2009 02:13 #3

• ThePastor

  But the whole Top 40 and Top 100 has always been based on equal availability. With two or three tier pricing you could make an instant hit simply by putting it in the .99 section and giving it an instant boost! In other words, they can manipulate the Top 40, (as if they never did that before)
  A side-effect will be that the studios will find that their new hits that they expect to "Go number one with a bullet" won't make it quite as high up the list as they expected, because it will be in the higher priced section!
  The whole paradigm will fall apart.

  12.4.2009 04:02 #4

• elbald90

  what did they expect would happen if only businesses in all walks of life would wake up and realise that the better value for money something is the more you will make sky high prices dont always mean high profit . if people see a good price for something they will buy it and you will make more in the long run

  12.4.2009 04:34 #5

• pphoenix

  Originally posted by khmernize: I wonder how long before Apple will reduce their price back to the orginal price and keep everything DRM free.but it's not the RIP OFF price the RIAA demands, that is hurting the business, It's PIRACY.
  
  RIAA:
  
  * EMI
  * Sony
  * Universal
  * Warner
  
  
  and the governments say, now lets get on with DPI, now we have installed enough FEAR into everyone.

  12.4.2009 05:17 #6

• DXR88

  Quote:but it's not the RIP OFF price the RIAA demands, that is hurting the business, It's PIRACY.
  
  RIAA:
  
  * EMI
  * Sony
  * Universal
  * Warner
  
  
  and the governments say, now lets get on with DPI, now we have installed enough FEAR into everyone.Fear you really think they scare people. there the ones that should be afraid.

  12.4.2009 19:55 #7

• bomber991

  Originally posted by elbald90: what did they expect would happen if only businesses in all walks of life would wake up and realise that the better value for money something is the more you will make sky high prices dont always mean high profit . if people see a good price for something they will buy it and you will make more in the long runWe know these record companies are really big businesses. I'm pretty sure they have a few people working there that did a good 4 years of college just studying economics. What you just said though is basically true.

  12.4.2009 23:42 #8

• SProdigy

  Originally posted by elbald90: what did they expect would happen if only businesses in all walks of life would wake up and realise that the better value for money something is the more you will make sky high prices dont always mean high profit . if people see a good price for something they will buy it and you will make more in the long runAgreed. I picked up a few tracks off of Bush's Sixteen Stone album for 99 cents a piece... it was released in 1994! Even movies that have been out for awhile go on sale, but music in general: not so much!
  
  The full CD on Amazon, or at Best Buy is still 13.99. I need to start going to the library for more of my music before the RIAA realizes that CD's are rented there for FREE. (And DVD's... and of course BOOKS.)

  13.4.2009 11:00 #9

• nepgunes

  All tracks are still $1 over at Thumbplay and have always been DRM-Free.

  13.4.2009 15:24 #10