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iTunes new variable pricing model


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I found this article through the LA Times not too long ago and thought I'd share it with you guys:

 

http://latimesblogs.latimes.com/technology/2009/04/itunespricing.html

 

In short, iTunes is applying a variable pricing model making the popular songs more expensive ($1.29) and the less downloaded songs less expensive (down to $0.69) as oppossed to keeping everything at roughly $0.99 like before. It's going to be interesting to see how this unfolds since a place like Amazon didn't follow with the switch yet from what I can tell so the same popular tracks at iTunes for $1.29 are still at $0.99 at Amazon.

 

Maybe I saved you guys a few cents :)

 

Aside from this, it's kind of odd though isn't it? Shoudn't the less popular songs need to cost more as they are in a niche maybe, or aren't selling so now it's even harder to make any money since they are 30% less expensive? Plus you'll have all the big stars who have no problems selling make even more money ... Ah man. I know it makes sense in theory for iTunes and the big sellers but it keeps widening the gap between 'rich' and 'poor' nobody bands in a sense.

 

Any thoughts?

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Something else I'd like to share on the iTunes vs Amazon topic, another interesting fact that might push you to check out Amazon over iTunes, Amazon has over 770 free songs if you search a little so a lot of free music available. Also, if you want some free legal songs from iTunes, check out this blog that keeps track of the free songs bands put out through iTunes:

 

http://freeitunessongs.blogspot.com/

 

If any bands here have songs for promo on iTunes, maybe you can send these guys an email or something to get a little exposure for your freebies.

 

Hope it helps someone :)

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Aside from this, it's kind of odd though isn't it? Shoudn't the less popular songs need to cost more as they are in a niche maybe, or aren't selling so now it's even harder to make any money since they are 30% less expensive? Plus you'll have all the big stars who have no problems selling make even more money ... Ah man. I know it makes sense in theory for iTunes and the big sellers but it keeps widening the gap between 'rich' and 'poor' nobody bands in a sense.


Any thoughts?

 

 

Remember there is no physical stock and warehousing needed for the niche market. Its either sell at a discount or don't sell at all. They, iTunes is making the beat that for convinence sake they can get 30% more on their most popular titles. Atleast it is not as bad as holding back the hit for album sales only and selling spoken interludes and introductions for full price.

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