Feeds

Major labels 'force 70% price hike' on Apple

Less bangs for your buck

  • alert
  • submit to reddit

SANS - Survey on application security programs

The world's five biggest music labels have successfully forced Apple to increase the prices it charges for songs on the online iTunes Music Store.

As we reported back in April, the major labels have been engaged in negotiations with the Mac maker in a bid to persuade it to put up prices.

According to a New York Post report today, citing sources close to the talks, all five have succeeded.

The sources claim Apple has now signed agreements with EMI, Bertelsmann Music Group (BMG), Sony, Universal and Warner that will see prices on some songs rise from 99c to $1.25, an increase of over 26 per cent.

Still, that's better than the $2.99 price point some labels had been pushing Apple to introduce.

Album prices are going up too. Many are likely to continue to be offered for $9.99, but some are appearing in the ITMS for $16.99, a rise of 70 per cent.

As one music industry source told The Register: "That will really ingratiate the public and discourage piracy, won't it?"

Apple does appear to have had it way in other areas, however. The NYP's sources reckon the company did not agree to label demands that some artists' songs only be sold in album batches and not as individual tracks.

In the past, some acts, most notably Radiohead and Metallica, have said they will not allow their songs to be offered individually. But that clearly runs against what many music consumers want: the ability to pick and choose the songs they want and not be stuck with all or nothing album offers. The old days of buying an entire album for one song are hopefully behind us.

We'd say it's about time the music industry started thinking that way too. There will always remain a place for albums - CDs too - but artists and labels have to start thinking 'outside the disc' if they're to reach a new generation of consumers now empowered to buy exactly what they want.

Other services may face similar demands, but there does seem to be a particular focus on Apple. Having established the market for legal downloads, Apple now seems to be facing a music industry paranoid about the power that success might bring the Mac maker. ®

Related stories

Music biz fears play Apple a compliment
Labels seek end to 99c music per song download
Apple misses iTunes sales target by 30%
Napster parent Q4, FY loss widens
Dixons signs Napster promo exclusive
Napster's music licensing frustration

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.