low frequency : high snr

Posts Tagged ‘amazon’


In Business, Media, News on October 17, 2007 at 12:34 pm

So I just read this yesterday: According to this post on Ars Technica, DRM-free iTunes Plus downloads will be priced at 99c instead of $1.29. Is this a result of competitive pressure from Amazon’s new MP3 store (available only in the US) which sells only DRM-free music from EMI and others at lower prices? Hard to believe, as Amazon’s share in the MP3 market must be negligible and their site leaves much to be desired, but it could be that Apple is proactively dropping their prices on iTunes to maintain their pole position. Most likely I would guess that they have found their pricing at $1.29 was too high.

But if all this is true, it will mean that iTunes will offer DRM and non-DRM versions of the same songs, for the same price!

Something is wrong here, there is probably some transition going on, where, if any of this is true, Apple is reconsidering their pricing. They have two options: Either they drop the DRM versions entirely for those labels and artists who favor the DRM-free format, or they must price DRM and non-DRM versions differently. A subscription model for DRM songs would be an alternative.

And of course if they do price all DRM-free downloads at the standard price of 99c they ought to offer a free upgrade to all those faithful iTunes buyers who paid 99c to get the DRM versions!


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