Variable Pricing Slows Digital Music Sales

Feb 9th, 2010 | By | Category: Technology

Ever since the recording industry convinced Apple to introduce variable pricing into its iTunes store, online music sales have slowed. The change from a flat 99 cents price point to a variable scale ($1.29 to 69 cents) made the labels happy but turned buyers away.

A 30% increase in prices during a recession didn’t make much sense even though Warner Music group CEO Edgar Bronfman, Jr. says it has been a “net positive” for his firm. Go figure.

Warner saw year-over-year increases shrink from 11 percent in June to 10 percent in September to 5 percent in December.

According to All Things’s Digital’s Peter Kafka, “The counter here is the one that seems obvious to everyone else: Lower prices and you can sell more stuff.”

Digg This
Reddit This
Stumble Now!
Buzz This
Vote on DZone
Share on Facebook
Bookmark this on Delicious
Kick It on DotNetKicks.com
Shout it
Share on LinkedIn
Bookmark this on Technorati
Post on Twitter
Google Buzz (aka. Google Reader)
Tags:

Leave a Comment