Hottest iTunes tracks to cost $1.29 starting April 7
Saturday, March 28, 2009 at 05:18PM The world’s largest music store, Apple’s iTunes, plans to boost the price of many hit singles and selected classic tracks to $1.29 on April 7, breaking the psychological barrier of 99 cents in what could be he first big test of how much consumers are willing to pay to download individual songs.
Although the date for higher prices has not been announced, Apple has been notifying record labels it will go into effect on that date, according to industry executives.
The move, part of a new “variable-pricing” strategy that will also lower the price of selected songs, is an attempt by the music industry to wring more revenue from digital downloads in the ongoing battle to offset declining CD sales. Label executives contend the new pricing will allow them to offer packaged downloads of songs that might entice consumers to spend more on music.
Some music industry veterans are criticizing the 30% hike price, saying the timing is tone deaf because it comes in the midst of a recession and at a time when spending for online music appears to have reached a plateau.