Apple sets tune for pricing of song downloads
Apple Computer on Monday revealed it had renewed contracts with the four largest record companies to sell songs through its iTunes digital store at 99 cents each. The agreements came after months of bargaining, and were a defeat for music companies that had been pushing for a variable pricing model.
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The music industry’s big four - Universal, Warner Music, EMI and Sony BMG – were not immediately available to comment.
Since iTunes’ launch three years ago, Apple has charged US consumers 99 cents for each track – a uniform price that Steve Jobs, its chief executive, favours because of its simplicity for consumers.
Edgar Bronfman, Warner’s chief executive, and senior executives at EMI and Sony have in recent months supported variable pricing, which would allow them to charge more for new material from top artists. Universal has taken a more modest approach, suggesting that the market should be allowed to develop further before any adjustments are made.
The issue has occasionally become acrimonious, with Mr Jobs last year publicly labelling the industry “greedy”. However, several music executives privately acknowledge that they have little leverage over Mr Jobs.
Apple Computer on Monday revealed it had renewed contracts with the four largest record companies to sell songs through its iTunes digital store at 99 cents each. The agreements came after months of bargaining, and were a defeat for music companies that had been pushing for a variable pricing model.
ADVERTISEMENT
The music industry’s big four - Universal, Warner Music, EMI and Sony BMG – were not immediately available to comment.
Since iTunes’ launch three years ago, Apple has charged US consumers 99 cents for each track – a uniform price that Steve Jobs, its chief executive, favours because of its simplicity for consumers.
Edgar Bronfman, Warner’s chief executive, and senior executives at EMI and Sony have in recent months supported variable pricing, which would allow them to charge more for new material from top artists. Universal has taken a more modest approach, suggesting that the market should be allowed to develop further before any adjustments are made.
The issue has occasionally become acrimonious, with Mr Jobs last year publicly labelling the industry “greedy”. However, several music executives privately acknowledge that they have little leverage over Mr Jobs.
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