iTunes Pricing To Hold At $.99
Apple's iTunes Music Store has renewed its contracts with the four major labels, and the computer company's download service will hold the pricing line at 99 cents per track.Apple's iTunes Music Store has renewed its contracts with the four major labels, and the computer company's download service will hold the pricing line at 99 cents per track.
"We renewed our agreement with the major music companies, and we're pleased to continue offering iTunes customers music at 99 cents from our library of more than 3 million songs," an Apple spokesperson said. The company firmly declined further comment.
Apple's iTunes, which dominates download music sales with an estimated 80% market share, has been faced with complaints from the majors about its 99-cent pricing, which covers newly released music and back-catalog titles. Some label executives -- most notably WMG CEO Edgar Bronfman -- had agitated for variable pricing of Apple's downloads.
Apple CEO Steve Jobs shot back at one public forum last year that the labels' call for a different pricing structure was "greedy."
A spokesperson for EMI Music said the company does not comment on contractual matters. Sony BMG Music, Universal Music Group and Warner Music Group did not return calls seeking comment.
One industry source noted that Apple has the ability to price its online music in whatever manner it sees fit, just as brick-and-mortar retailers set the price for CDs, and that the computer company's contracts with the majors address only the wholesale pricing of the labels' wares.