iTunes price increases decrease sales

Apple‘s recently introduced tiered pricing has had an immediate impact on sales through the iTunes music store. Until recently, all music through iTunes was solid for 99¢ but the major labels pressured Apple to allow price increases to $1.29 and also promised decreases of “some” catalogue songs to 69¢.

Billboard examined the results and found that $1.29 songs lost an average of 5.3 places on the chart while the $0.99 songs gained an average of 2.5 chart positions. For a price increase (to $1.29 from $0.99) to result in an equal or greater amount of revenue, unit sales would to drop by no less than 23.3%.

Even more noticeable is the rarity of 69¢ songs promised by the labels. Gizmodo found one, a Limp Bizkit/Bubba Sparx collaboration, remixed by Timbaland.
Source Apple‘s recently introduced tiered pricing has had an immediate impact on sales through the iTunes music store. Until recently, all music through iTunes was solid for 99¢ but the major labels pressured Apple to allow price increases to $1.29 and also promised decreases of “some” catalogue songs to 69¢.

Billboard examined the results and found that $1.29 songs lost an average of 5.3 places on the chart while the $0.99 songs gained an average of 2.5 chart positions. For a price increase (to $1.29 from $0.99) to result in an equal or greater amount of revenue, unit sales would to drop by no less than 23.3%.

Even more noticeable is the rarity of 69¢ songs promised by the labels. Gizmodo found one, a Limp Bizkit/Bubba Sparx collaboration, remixed by Timbaland.
Source

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