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Monday, March 30, 2009

New iTunes Tiers on April 7?

It looks like the new iTunes variable pricing plan will finally hit the streets on April 7th.

If you've not heard, instead of every song in the iTunes catalog available for a flat 99 cents, a 3 tier variable pricing structure will be introduced - 69 cents for catalog, 99 cents for recent releases, and $1.29 for current hits. The $1.29 tier will have higher bandwidth and no DRM.

iTunes has over 10 million songs now available at 99 cents. According to the NPD Group, the average spend per consumer is $41 a year.

In this economic climate, raising the price on anything seems like market suicide, but the labels have fought for this for a long time. I guess we'll know on April 8th just how smart of a decision it really is.


Thom said...

I'd closely watch the traffic on PirateBay and the few music pirating sites in the following 30-60 days. That'll give us an interesting data point to follow.

Bobby Owsinski said...

Yes, it seems there's some push back about to happen.


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