Apple denies iTMS price increase | iLounge News

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Apple denies iTMS price increase

MacMinute reports that Apple on Friday denied a report in the New York Post that it plans to raise the prices of some tracks on its iTunes Music Store to US$1.25 a song. “The rumors aren’t true,” Natalie Secqueira, an Apple’s spokeswoman, told CBS Marketwatch. “We have multi-year agreements with the record labels and our price remains 99 cents a track.”

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Comments

1

So, Apple is saying that the price will NEVER for the life of iTMS, go above .99 a song. We shall see…

Posted by Jack Handy on May 7, 2004 at 10:41 AM (PDT)

2

Not what they are saying.

Posted by Randy on May 7, 2004 at 10:43 AM (PDT)

3

Randy,

The NYP article didn’t give a “time frame”, so for Apple to deny a price increase to a story that doesn’t give a “time frame” is saying they will never raise the price.

Posted by Jack Handy on May 7, 2004 at 10:48 AM (PDT)

4

Let me make one addition:

“We have multi-year agreements with the record labels and our price remains 99 cents a track (for now).”

This phrase was carefully worded, I think.  It’s clear that the 99-cent price point is not necessarily tied to the multi-year mentioned earlier.  They have multi-year contracts.  The price right now it 99 cents.

There’s nothing saying that it won’t be $1.25 next month.

I’m starting to dislike this whole iTunes thing.  I still have not been able to find a $9.99 album that I actually want to buy.  If anything, they need to drop the prices.

Posted by m. sherman on May 7, 2004 at 10:50 AM (PDT)

5

“We have MULTI-YEAR AGREEMENTS”, sounds like a time frame to me.  It’s not specific, but it’s close enough, I’d expect it to be anywhere from a 2-5 year agreement

Posted by mkoby on May 7, 2004 at 10:50 AM (PDT)

6

The more popular iTMS becomes, the higher the price will be.

This is just the way the econmoics of this situation work out.

By next summer $2.49 a song is my prediction, and iTMS will be alive and kicking harder than ever.

At that point people will have to consider if it makes sense for them to buy a single, or drop $9.99 for the whole album.  This is the position the Lables/Apple want us in.  Right now, at 99cents a song, the deal favors the consumer too much.  Apple can deny it until they’re blue in the face… the price going up and it’s going up soon. 

Along with prices going up, usage rights are going to go down.  Soon you will only be able to burn a song five times, regardless of what playlist it’s part of.  With the curent usage rights, Apple is basically making it legal to share your songs with friends.

Get your buddies together, each pitch in $1.50 to download an album and burn a copy for everyone.  This is the stuff that’s happening at colleges right now.

Posted by BigSid in Los Angeles on May 7, 2004 at 11:22 AM (PDT)

7

I, for one, won’t be buying anything over $0.99; but BigSid does make a point.

Posted by dethbrakr in Tacoma, WA on May 7, 2004 at 1:25 PM (PDT)

8

I say, if your going to pay for your music, just buy the cd.  Paying for mp3’s is way above my head. 

Posted by ZartanLovesYou in Boston on May 7, 2004 at 1:46 PM (PDT)

9

THIS IS MY COMMENT FROM A DIFFERENT THREAD, BUT IT’S APPROPRIATE TO POST IT HERE AS WELL:

This is just the beginning, fellas!

The price of downloaded music is going to steadily go up, and there’s not much we can do about it. The Label/Apple are going to test the limits of what they can drain from our wallets, and only when it’s absolutely clear that we won’t go for it, will the prices come down. The bottom line is that the masses want what they’re selling. Music is a hot commodity. Within a year the price will be $1.99 for hot songs (maybe even the reported $2.49 or more).

When iTMS started it’s competition was against free downloads, so 99cents a song was being compared to free. Now, Apple who feels they have the best service and can comparatively price their product against other services charging 99cents by adding a premium—since iTMS is supposedly the best. Doesn’t Apple charge a premium on the computers—since they are supposedly the best?

No way in hell the Labels were happy with getting 99cents for the hottest song on an album and losing the $11.99 CD sale they were used to before iTMS. They’re going to make up for this with a pricing scheme that says the price of 3-4 singles equals the price of an entire album. This is the way they’ve always done it in the past, and they will not abandon their tried and true business model—they think the can out smart the Net so to say.

The future of iTMS and others is:

Single $2.49
Album $9.99

And, the number of people downloading is still going to go up along with price of the singles.

Posted by BigSid in Los Angeles on May 7, 2004 at 2:05 PM (PDT)

10

Apple is competing against the CD as well, they can’t get too out of control or loose to the competition.

Question:

Sony is getting into the download business and they are a label being sold on iTunes.  Do they want Apple to charge more so their site looks more attractive?

Posted by jwc110869 in Rochester, NY on May 7, 2004 at 5:07 PM (PDT)

11

““We have multi-year agreements with the record labels and our price remains 99 cents a track.”“

yeah, sure. i’ll watch it go up in price. god im glad i didn’t jump on the itms bandwagon. too many compromises

Posted by Fiddytree on May 7, 2004 at 6:23 PM (PDT)

12

Where do you buy your singles, then?

They’re still .99 by the way. Considerably less than buying the whole CD for one good song.

Posted by Nagromme on May 7, 2004 at 7:18 PM (PDT)

13

I have a feeling the same people who complain about having to pay for music are all too willing to part with their cash trying to keep up with the latest trend.

It also might be the case that some of these people are addicted to the thrill of laying claim to something without paying for it and will use any excuse to justify their behavior. 

Posted by aries73 on May 8, 2004 at 5:24 AM (PDT)

14

I find it interesting that there are people posting here that are talkin as if Apple has already raised prices.  I, personally will give them the benefit of the doubt.  I work with attorneys, and I can appreciate how words can be used to blur the facts, but “The rumors aren’t true.” is pretty clear cut to me.

Let’s wait and see what Apple does, and act as consumers accordingly.  I personally, will not pay more than $.99 a song at this time. Frankly, it bugs me that Apple charges me 5 cents tax on every song I purchase.  That’s not to say I won’t ever pay it.  Ten years from now I might pay as much as $1.50 for a song. But there’s no way I would ever buy a song for 2 bucks or more.  At that price point they’re saying that if I want to or three songs I might as well buy the whole album, filler tracks and all.  That smacks of extortion, and I won’t be extorted.

Posted by rdlink on May 8, 2004 at 5:54 AM (PDT)

15

actually, i would pay for the singles if they were cheaper than 99c (quality, drm). i, however, use p2p to find out if i like more than 3 songs and then buy the album. if i don’t, trash the sucker.

“They’re still .99 by the way. Considerably less than buying the whole CD for one good song”

indeed they are, but i don’t feel confident when album prices, songs, albums change constantly in less than a year.

Posted by Fiddytree on May 8, 2004 at 3:42 PM (PDT)

16

Most people nowadays buy one single music that has music video (that they see on MTV) or a song that belongs to top 10 or top 20. We now see lesser people that buy album CDs instead people just buy song that got more popular that has music video. So to coup with the cost of music video, they need to raise the prices of downloaded music.

Posted by WoW on May 9, 2004 at 3:04 AM (PDT)

17

Bait and switch is the way the games played.  Get’em hooked then raise the price and change their rights.  I honestly dont understand why the masses didnt see this coming.  I am no financial genius and I saw this comin a mile away.  I personally dont need iTunes to fill my iPod. I have a record store up the street that sells the latest CD’s that concern me (luckily i love the blues and so does the owner) for $10 or less.  This includes the case and liner notes ! ( i.e. Corey Harris - Mississippi to Mali-$9, SCI-Untying the Knot-$9, SRV-Live in Montreux, Dbl CD-$14 just to name a few) Thanks to Apple tho for adding the lossless support, even if its their own.  Now I can rip my $9 CD’s into a decent quality codec and put them on my iPod.

Posted by Dale on May 9, 2004 at 6:25 PM (PDT)

18

Seems like everyone here is a clairvoyant!  Most of the posts here are nothing more than speculation about speculation.  Give it a rest.

Posted by The Raven in USA on May 10, 2004 at 2:30 AM (PDT)

19

Apple is on the verge of being muscled by the RIAA like so many people and corporations before them.

ITMS will cease to be the place for impulse buying that it is now and P2P will make its resurgence.

The RIAA are a bunch of souless corrupt morons and Apple and ITMS are just another tool in their greed.

Apple fanboys - get over it.

Posted by sure on May 10, 2004 at 4:53 AM (PDT)

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