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iTunes DRM-Free Tracks Now Same Price As DRM Tracks
jawtheshark writes "Apple has made the decision to revise the pricing of Plus songs on the iTunes Music store. Whereas previously the DRM-less tracks were more expensive than the 'normal' option (at $1.29 vs. $0.99), DRM-less tracks bought via ITMS will now be priced on the same level as DRM'd tracks. 'Apple plans to expand iTunes Plus to include certain indie music labels starting Wednesday, October 17 (or sometime this week, at least) ... This expansion won't include all independent music labels just yet, although we're optimistic that more will be included in the future. While we have no information on whether the iTunes Plus songs are selling well, we assume that the decision to drop the price is a response to the Amazon MP3 store. Amazon sells individual tracks for between 89 and 99 apiece, all without any DRM restrictions. With that in mind, it's kind of hard for Apple to compete at $1.29.'"
If we look at the situation, we can see that there is a major problem with Amazon's service:
Step 1 - Universal wants higher prices, but Apple refuses.
Step 2 - Universal dumps Apple and goes to Amazon, and Amazon starts selling songs at prices lower than the iTunes Store.
Step 3 - ?
In Step 3, Universal needs to achieve the goals it set out with contract re-negotiations with Apple. The goals were higher prices, with a larger percentage going to Universal for sending over a digital copy of an album four years ago. (The artists, are, as you might imagine, quite irrelevant in their calculations).
So why are they selling tracks at $0.89? To drive people away from the iTunes Store, knock it off its pedestal as the dominant online music retailer, and then jack up the prices once that has occurred and there is a new major player on the block who is more...accommodating...to the wants of the major labels.
Am I suggesting that people abandon Amazon and start paying more of their hard-earned money to Apple? No. What I am suggesting, and what I have done, is to put a moratorium on my online music purchases until things settle down a bit, as I strongly believe Amazon is going to end up screwing us in the end. We have to keep in mind the only reason Universal went with Amazon was because Apple refused to let them dictate terms that would end up raising the price of online music to a point higher than physical CDs themselves.
It's ridiculous to think that these prices are going to last, and that when the "correction" comes, that it will be anything but drastic. Giving Amazon a great deal of business, and thus, the big labels more leverage over operations that have fought for the end users, is detrimental to online music retailing as a whole.
Let me reiterate, the problem is not that the music is being sold by a company other than Apple, but WHY that music is being sold by a company other than Apple at the prices currently asked.
We could not process your order because of geographical restrictions on the product which you were attempting to purchase. Please refer to the terms of use for this product to determine the geographical restrictions.
We apologize for any inconvenience this may have caused you. This, in spite of the fact that I have previously made purchases with a false address in CA 90210! They've obviously tightened up the rules. How depressing! No doubt, downloads will cost 1GBP, rather than 1USD, when they finally make it to the UK.