iTunes Tiered Pricing Launches Today
Apr 7 2009, 9:00am CDT | by Luigi Lugmayr
In response to pressure from music labels who argued that song value should be based on popularity, Apple’s iTunes today went live with its 3-tiered pricing strategy. Each song available on iTunes will now be priced at $1.29 for new hit releases, $.99 for the majority of songs, and $.69 cents for older tunes, replacing the one price fits-all-strategy that Apple engaged in since opening iTunes in 2003.
To offset any criticism of the $1.29 price point, an Apple spokesman was quick to point out in an interview with Reuters that for every title raised in price, at least ten would be reduced to $.69.
When they announced the plan earlier this year, Apple claimed that most album prices would remain at $9.99, and any price increase would not be due to the $1.29 hit-song price point.
New tracks purchased through the iTunes will still be DRM free.
In early reviews, Gizmodo had a tough time finding a $.69 track. Acts long out of the pop charts including Vanilla Ice and LFO still carried tunes with the $.99 price point.
Currently, the Apple Store is down. Perhaps they are working out the kinks?
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Luigi Lugmayr
Luigi is the founding chief Editor of I4U News and brings over 15 years
experience in the technology field to the ever evolving and exciting
world of gadgets. He started I4U News back in 2000 and evolved it into
vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.
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