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MP3 Download Prices to Rise?

Posted by Hemos on from the bad-move dept.

OBeardedOne writes "The major music labels are in talks with music download services attempting to get them to increase the price of music downloads. " Sounds like there is division in the ranks of the music companies, but something to watch.

6 of 831 comments (clear)

  1. Link to CNN article by Tree131 · · Score: 5, Informative

    Here's a link to CNN article.

  2. HERES THE LINK! by keeleysam · · Score: 5, Informative

    http://www.theregister.co.uk/2005/02/28/downloads_ price_rises/

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  3. Contracts... by somethinghollow · · Score: 4, Informative

    I think it was Steve Jobs who said Apple has contracts with the record labels to sell songs at .99. These contracts, if I remember correctly, were for at least 5 years. The same rumors happened last year in may. But, I guess we'll see what happens.

  4. Price Elasticity by irhtfp · · Score: 4, Informative
    If they raise prices, it will drive more people back into Kazaaland. At the margin, some people will be willing to pay $.99 but not $1.09. The curve that describes this behavior is by no means linear. I would think that Apple has done a fair bit of research to determine where the optimal price point on this curve is.

    It will no doubt change as competition (i.e. Walmart, et. al.) enters the market. It's one of the most common fallacies in business to raise your prices to make more money (or conversely to have a sale). It takes careful research and testing to determine the correct price point to maximize profts. You can't just decide to raise more prices to get more money.

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  5. Re:Well they have to raise prices by khallow · · Score: 5, Informative

    The correct terms are "oligopolistic collusion", "semantic games", and "oligopoly". "Monopoly" means the market is completely dominated by one supplier. In the music industry there are multiple competiting suppliers, but only a few have huge and cozy distribution chains. That's an oligopoly not a monopoly.

  6. Re:www.allofmp3.com by igny · · Score: 4, Informative

    According to the Russian news, allofmp3 has found a loophole in the Russian laws, which equated the music downloads to a (radio) broadcast as long as they pay the license fees. Allofmp3 is currently under investigation by the Russian Police because of a (local) conflict between two Russian licensing agencies, not because RIAA is after them.

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