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iTunes downloads grow cheaper, kindaSubmitted by Andy Space on Thu, 05/08/2008 - 12:45.
Now, we’re not saying prices should go up - but we are interested in a recent Digital Audio Insider analysis of the inflation-adjusted price of a download through the service, which reveals that should prices have kept up with inflation, songs would now cost $1.14. And by 2012 songs will cost the equivalent of 74-cents a track, assuming prices remain static. That download prices have remained static isn’t so remarkable when you consider the continuously falling price of CDs. However, it’s clear that Apple will be under increasing pressure on the part of the music labels to raise its prices, even if it resists the call for price flexibility. Though the company has frequently warned that raising music prices at this stage of the evolution of the digital music industry could still drive consumers to the cheapest music prices available anywhere - the file-sharing networks.
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iTunes offers music at inflation-busting prices, it seems, with the 99-cents per track price remaining static since the service launched in 2003.
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Music companies are run by morons
1. CD prices are and have been falling
2. The music companies want to INCREASE the price of downloads
3. CDs give better quality, no customer hostile DRM, and a jewelcase plus inserts
Therefore downloads would cost more (it already can be cheaper to buy a physical CD) and give you less (quality and usage rights).
Music companies are run by morons - quod erat demonstrandum
[For Movie company executives - see Music company executives.]
Apologist Argument
Umm, this is one crazy argument.
First of all, prices at iTunes HAVE gone up. When everything used to merely be 9.99, it's now become more for big name acts who still got the old school greed on.
Also, there are GINORMOUS savings in distribution. No CDs are actually manufactured. There's only cover art, but no inner sleeve art. No shipping and related costs. Middlemen are whoopie gonzo!
And let's not FORGET that all along Steve has been suggesting prices must DROP to negate the need for filesharing. Once a disc reaches the $4.99 price, only folks who would steal it anyway will. Everyone else would pony up $5 damn dollars.
In fact, if the price dropped to $2.99, people would send each other iTunes as 'thank you' notes/gifts.
Price increases. Dinosaur thinking.
It's not like the cost of
It's not like the cost of providing the tracks have gone up since 2003; a bit of data is a bit of data and producing it, delivering it, storing it, moving it from place to place typically gets less expensive due to advances in technology. Any increases in prices of song will be due to marketing geniuses who think they know consumers. Apple has been right on target. A 99 cent price point is perfect now and in 10 years.
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