The problems seemed to begin immediately after the new pricing scheme was introduced. Although the number of songs sold jumped, it wasn't an across the board increase.
In fact, sales of tracks priced at $1.29 actually fell. Fortunately for Apple, revenue from sales at the lowest tier were enough to make up the difference, resulting in a net gain.
According to Digital Music News the labels haven't been quite so lucky. They are reporting label revenue under the new price scheme has actually dropped.
If the trend continues it would seem the labels have managed to accomplish the exact opposite of what they wanted. Their chief complaint about iTunes, almost since its inception, has been that it gives Apple too much power in the market.
At least for now, giving in to label demands appears to have increased that power.
Written by: Rich Fiscus @ 7 May 2009 7:57
