Tiered iTunes Pricing

By Dave

It looks like Apple is losing support from the greedy music industry as they line up to try to force him into a tiered pricing system based on the age of the song and popularity.

Two and a half years after the music business lined up behind the chief executive of Apple, Steven Jobs, and hailed him and his iTunes music service for breathing life into music sales, the industry’s allegiance to Jobs has eroded sharply.

Jobs is now girding for a showdown with at least two of the four major record companies over the price of songs on the iTunes service.

If he loses, the one-price model that iTunes has adopted–99 cents to download any song–could be replaced with a more complex structure that prices songs by popularity. A hot new single, for example, could sell for $1.49, while a golden oldie could go for substantially less than 99 cents.

I think this is a bit rediculous. I do think that older songs should go for less, but I don’t think they should raise the rate of newer songs to $1.49 a song as this increase will probably hinder iTunes growth and aggrivate the current user base. Would you pay $1.49 for a single song?

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