View Full Version : Apple iTunes Store Cost Varies
MacBytes
Dec 5, 2004, 09:57 PM
Category: News and Press Releases
Link: Apple iTunes Store Cost Varies (http://www.macbytes.com/link.php?sid=20041205215723)
Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug
mmmdreg
Dec 5, 2004, 10:11 PM
Well, what he's saying is more-or-less true so I'm not complaining. However, multiple simple grammar mistakes (eg. "If your in Canada..") make it a pain to read. A journalist who cannot make a distinction between "your" and "you're" should be shot!
12ibookg4
Dec 5, 2004, 10:14 PM
it makes sense that itunes songs are cheaper to download in Canada because in Canada, itunes has to compete more against the p2p music which is legal to download in Canada becuase they pay a tax on blank media (CD-R's) and mp3 players to reimberse the loss that the artists take when their songs are downloaded on p2p. Competition will bring the prices down. Do you actually think that it costs $1 for a digital file? most of what you pay is for the record company (65%).
Nermal
Dec 5, 2004, 10:42 PM
Well, what he's saying is more-or-less true so I'm not complaining. However, multiple simple grammar mistakes (eg. "If your in Canada..") make it a pain to read. A journalist who cannot make a distinction between "your" and "you're" should be shot!
I gave up after a few paragraphs, I couldn't be bothered with trying to decipher the grammar. :rolleyes:
Sharewaredemon
Dec 5, 2004, 11:21 PM
I gave up after a few paragraphs, I couldn't be bothered with trying to decipher the grammar. :rolleyes:
That's where skimming comes in....
Yeah well this guy is missing a few key points, no I admit, the UK thing holds water, but saying Canadians pay the least if one way of putting it, but how bout:
"Apple makes the least amount of money of the Canadian iTMS store, the UK and EU states launch a campaign to make sure that Apple raises the prices so that Apple makes the same amount of money on EVERY store."
Yeah right!
What none of these journalists understand is that the Primary purpose behind the iTMS's anywhere, are to sell iPods.
Plain and simple, even ask Steve, he'll tell you so. Apple makes 2 cents on each song downloaded, (less on a per album basis). So I really doubt that they have these stores to make money.
StarbucksSam
Dec 5, 2004, 11:47 PM
Interesting... WHY exactly are the Canadian paying less than I am? This is an outrage! Just kidding. Who CARES?!
Yvan256
Dec 6, 2004, 01:12 AM
Well, what he's saying is more-or-less true so I'm not complaining. However, multiple simple grammar mistakes (eg. "If your in Canada..") make it a pain to read. A journalist who cannot make a distinction between "your" and "you're" should be shot!
Yeah, it hit me right at the beginning... And to think I myself wouldn't even make that mistake (and english is a second language to me).
What's worst, he wrote "your" many times, so that's not even a typo, the guy just can't write.
bobbyperu
Dec 6, 2004, 01:13 AM
This is silly. He makes it sound like this is the first time pricing has been based on the relative strength of the local economy, rather than imposing equivalent pricing over all economies.
Just look at cars. A BMW 325i starts at $39,900 CDN in Canada, and $29,300 US in the US. When the Canadian dollar was at $0.65, last year, Canadians could buy the car for about $4,000 US less than an American buying it at home. But now that the American dollar has fallen, the Canadian dollar is worth more - $0.85... Canadians are now paying about $4,000 US MORE for the same car.
There are tons of examples of local pricing - Food, CDs, Audio/Video/Computer equipment, etc.
Equivalent pricing across all economies is extremely rare. What Apple is doing is the norm, nothing out of the ordinary.
The guy wrote the article obviously has no concept of economics, or is an idiot. Or both.
-b
p.s. Oh, and even I know that the Canadian dollar itself isn't called the 'loonie' (like the US dollar is called the 'greenback')... a 'loonie' is used to refer to the $1 coin, which has a loon on the front, not the entire currency. Again, the guy is an idiot.
Yvan256
Dec 6, 2004, 01:15 AM
it makes sense that itunes songs are cheaper to download in Canada because in Canada, itunes has to compete more against the p2p music which is legal to download in Canada becuase they pay a tax on blank media (CD-R's) and mp3 players to reimberse the loss that the artists take when their songs are downloaded on p2p. Competition will bring the prices down. Do you actually think that it costs $1 for a digital file? most of what you pay is for the record company (65%).
Actually, "illegal copying tax" aside, we already pay less for our music. Compare CD prices between countries, and you'll see about the same price difference.
Most of the new releases here are 10-20$CAN per CD (average being 15-18$). Of course, movie soundtracks, imports, etc. are more around 25-30$CAN, but that's another story.
Great article...NOT. General tone of the piece is a whinge and let's have a pop at iTunes Music Store success.
The EU UK price difference is a potential issue, but AFAIK & historically, music prices are controlled by the record company agreements within localizations, which generally are country based...sort of dilutes the argument.
If there was inter EU harmony for the goods previously than this would be more of an issue, but until other retail products fall into line I wouldn't expect online music stores to do so.
Blocking IP addresses is fine, but I have a friend in the Netherlands, before the Music Store arrived, who used to send dollars to the US, where his friend lived. This guy bought the music online via email requests and shipped them over in batches. :))
J-Squire
Dec 6, 2004, 01:30 AM
I think this is very unfair against apple. They are known for their marketing scheme of charging 99c per track. So they are trying to do this in all their markets. They are, in essence, trying to charge everyone the SAME price, and are now getting abused for charging everyone "different" pricing. I think it is insane that the UK is kicking up a fuss, because they are the only ones below 99c (which makes sense), and iTunes is cheaper than all the other competitors in that country. How can you complain that the cheapest seller is charging too much, and not complain about all the other companies that are charging 99p!?
...They are known for their marketing scheme of charging 99c per track. So they are trying to do this in all their markets. They are, in essence, trying to charge everyone the SAME price, and are now getting abused for charging everyone "different" pricing. I think it is insane that the UK is kicking up a fuss, because they are the only ones below 99c competitors in that country....
I am not complaining,but the UK is a slightly different issue because it's part of the EU trading circle, which has it's own rules and expects member states to be consistent within them.
The issue if you want to raise it, is that 99c is not equivalent to 79p (US$0.52 & €0.69 incidentally) unless you have an Apple Computer USA/UK calculator, but we are used to this over here. :) How many times have us folks in the UK longed for US$ prices instead of UKŁ for our Apple kit. :rolleyes:
SilvorX
Dec 6, 2004, 03:42 AM
I purchased a cd for $9.99CDN a few months back, the exact same cd in the us was $19 bucks US or so, i've heard that the cd prices have always been cheaper in canada than the US (either than blanks)
JeffTL
Dec 6, 2004, 09:17 AM
If the British don't want to use the Euro they shouldn't complain when they don't get the same prices the French do.
Bendit
Dec 6, 2004, 10:00 AM
it makes sense that itunes songs are cheaper to download in Canada because in Canada, itunes has to compete more against the p2p music which is legal to download in Canada becuase they pay a tax on blank media (CD-R's) and mp3 players to reimberse the loss that the artists take when their songs are downloaded on p2p. Competition will bring the prices down. Do you actually think that it costs $1 for a digital file? most of what you pay is for the record company (65%).
Ugh - It's is not legal to download stolen music in Canada! Why does everyone think this?
The court simply found that it was not illegal to post music online - so filesharers could not be charged of a criminal act. They do not condone stealing music.
The CD-R and Mp3 player tax is not a subsription to download any music.
Wonder Boy
Dec 6, 2004, 10:22 AM
and we Americans pay less for hardware. i'd rather save money there then on acc files. it's all relative to your geographich location anyway, isn't it?
StarbucksSam
Dec 6, 2004, 10:26 AM
p.s. Oh, and even I know that the Canadian dollar itself isn't called the 'loonie' (like the US dollar is called the 'greenback')... a 'loonie' is used to refer to the $1 coin, which has a loon on the front, not the entire currency. Again, the guy is an idiot.
I was waiting for someone to say that. You're VERY right. We say Japanese Yen, American Dollars, British Pound Sterling, and Canadian DOLLARS, not LOONIES.
Loonie - Canadian one dollar coin
Toonie - Canadian two dollar coin
You are VERY good. LOL.
tYNS
Dec 6, 2004, 10:46 AM
Actually, "illegal copying tax" aside, we already pay less for our music. Compare CD prices between countries, and you'll see about the same price difference.
Most of the new releases here are 10-20$CAN per CD (average being 15-18$). Of course, movie soundtracks, imports, etc. are more around 25-30$CAN, but that's another story.
Thank You for stating this! I was starting to get annoyed.
Of course it is cheaper here in Canada. Music and DVD movies are generally cheaper here in Canada all the time. I know many american friends that travel here to simply purchase CD's and DVD's because of the cheaper price tag.
The fellow who wrote this article should have done further research and logical reasoning to discover why it is cheaper, instead of accusing Apple of overcharging. To state such a claim requires proof and reasoning. He shoudl simple stated Apple's prices VARY from iTMS store to iTMS store, not OVERCHARGE.
In order for iTunes music store to survive, they need to compete with pricing. Why in the heck would I pay more or the same for an album on the iTunes music store, than I would pay in an actual store or other music service offered here in Canada (puretracks). The sound is compressed, there is no printed material either, it uses my bandwidth and my time to download as well. I also have restrictive access as to how many computers I can run it on.
Don't get me wrong, I have purchased a few albums already on the iTunes music store. I am simply stating that Apple had to make it cheaper in order to compete on a per regional basis.
The fact iTMS is global and that you can see various music pricings across the world now with a click of the button, has simply opened our eyes to this issue.
StarbucksSam
Dec 6, 2004, 10:55 AM
Think of it this way:
If I go to Starbucks in Philadelphia, a Venti Vanilla Bean Frappuccino is going to be $3.75 plus tax (3.98).
In New York, it's going to be closer to $4.25 (check me on that New Yorkers?)
Starbucks is not OVERCHARGING in New York. Their operating costs are HIGHER in New York because things cost more in that LOCAL ECONOMY.
You guys are right, this columnist wasn't thinking this through. He's not an idiot though, but he is disproven.
tYNS
Dec 6, 2004, 11:03 AM
I purchased a cd for $9.99CDN a few months back, the exact same cd in the us was $19 bucks US or so, i've heard that the cd prices have always been cheaper in canada than the US (either than blanks)
I am confused by this cd levy charge.. I have yet to knowingly encounter it being here in canada.
To be honest. I can purchase a pack of 100 cd-r's for 18 "loonies" canadian.. There is no levy charge on the receipt either.
SilvorX
Dec 6, 2004, 11:35 AM
I am confused by this cd levy charge.. I have yet to knowingly encounter it being here in canada.
To be honest. I can purchase a pack of 100 cd-r's for 18 "loonies" canadian.. There is no levy charge on the receipt either.
I guess it depends on which retailer you go to, I've purchased 2 spindles of 100 CD-Rs while in the states once, both were 15 US each, for the same spindle in Canada (unless if the retailer has some really great bargains or just really crappy CD-RS (ie no-name CD-Rs)) it was about $50-85 after GST/PST. I don't mind the CD-R prices, but I expect true quality if i'm going to be wasting a buck a CD-R, not some cruddy quality where I get 10 faulty CD-Rs and only 40 working out of a spindle of 50
SilvorX
Dec 6, 2004, 11:37 AM
Loonie - Canadian one dollar coin
some americans liked the loon dollar so much that they copied it and made a crappy version of their own (the saquajawea... i can't spell today so dont mind me), heck they even got the Royal Canadian Mint in Winnipeg to produce the blanks of the Saska (the coin before it gets stamped)
tYNS
Dec 6, 2004, 11:41 AM
I guess it depends on which retailer you go to
I hear what you are saying... I am picky too. But these are Ritek and I have yet to have a problem with one of them.
FujiFilm cd-r cost a pretty penny and a lot that I bought a few years ago no longer are readable in current drives.
Could posisbly be the burner i was using 6 years ago though .. ;)
Stella
Dec 6, 2004, 11:55 AM
If the British don't want to use the Euro they shouldn't complain when they don't get the same prices the French do.
Because you don't fully understand the UK iTMS complaint. By European law you should be able to buy a product from anywhere in EU regardless of where you live in the EU. Free Market. iTMS does not allow you to do this, thus potentially breaking EU Law. If the EU finds against Apple, this will have to be addressed. If Apple want to trade in Europe ( or elsewhere) then they have to abide by local laws.
**
This Article is stupid and pointless. Prices vary from country to country.. why should iTMS be any different?
Tulse
Dec 6, 2004, 12:23 PM
the Canadian dollar itself isn't called the 'loonie' (like the US dollar is called the 'greenback')... a 'loonie' is used to refer to the $1 coin, which has a loon on the front, not the entire currency.
I regularly hear financial reports in Toronto say that the "loonie is trading at xx cents US", and generally speaking, the term is used to refer to the Canadian dollar in abstract (e.g., its value) rather than just the coin. I agree that, in context, the article's usage was wrong: But PL also said that Americans pay 99 cents too - though in dollars - not Loonies
but presumably one wouldn't also have said "Americans pay 99 cents -- in greenbacks".
Loge
Dec 6, 2004, 01:03 PM
Because you don't fully understand the UK iTMS complaint. By European law you should be able to buy a product from anywhere in EU regardless of where you live in the EU. Free Market. iTMS does not allow you to do this, thus potentially breaking EU Law. If the EU finds against Apple, this will have to be addressed. If Apple want to trade in Europe ( or elsewhere) then they have to abide by local laws.
The single market has not been achieved yet for copyright material sold under license. It is being worked on. It's worth noting MSN music is the same - you have to purchase from your local store. Alternatively Napster.co.uk sells to UK only, and locks out the rest of the EU.
The EU may be more concerned with the price. In this respect MSN is charging 69p/99c, which is closer to the current exchange rate. Of course they may be making a loss in the UK. Apple will have to argue their cost structure with the EU.
elscorcho
Dec 6, 2004, 02:35 PM
I am confused by this cd levy charge.. I have yet to knowingly encounter it being here in canada.
To be honest. I can purchase a pack of 100 cd-r's for 18 "loonies" canadian.. There is no levy charge on the receipt either.
The levy is only charged on the specially formatted cd's that are required by CD burners in stand-alone audio systems - by that I mean the CD copier you would buy for you home theatre or stereo system. These machines require a special CD that costs more because of the levy and also because it has a form of copy protection that does not allow a copy to be made of a copy. If that makes sense.
Anyways, the point is the CD-R's you are buying in the store do not have the levy because technically they are "data" cd's and are not subject to the levy. Which is both stupid (because 99.9% of people copying cd's use their computers to do it) and good (because the levy is pointless and just a cash grab - not one cent has ever been distributed to the artists it is supposed to be "helping").
Bendit
Dec 6, 2004, 02:50 PM
The levy is only charged on the specially formatted cd's that are required by CD burners in stand-alone audio systems - by that I mean the CD copier you would buy for you home theatre or stereo system. These machines require a special CD that costs more because of the levy and also because it has a form of copy protection that does not allow a copy to be made of a copy. If that makes sense.
Anyways, the point is the CD-R's you are buying in the store do not have the levy because technically they are "data" cd's and are not subject to the levy. Which is both stupid (because 99.9% of people copying cd's use their computers to do it) and good (because the levy is pointless and just a cash grab - not one cent has ever been distributed to the artists it is supposed to be "helping").
As far as I know they are suspect to the levy as well. I remember when it came about and blank cd prices went up.
But blank cds are such a commodity now that even with the tax they cost very little. The tax is never added on the receipt or during the sale, the manufacturer encures the cost.
Just like the iPod doesn't have a seperate tax on your receipt, it's built into the price of the iPod.
applekid
Dec 6, 2004, 03:03 PM
So some countries are worked up that Apple doesn't deal with currency exchanges? Give me a break!
When you compare it to the online stores in those individual country's markets, the price is quite comparable. How about we all use one currency? Let's use rocks! 99 rocks for one song! I'm in.
Seriously, the article is written poorly ("Jobs' boyz," a journalist or someone from the ghetto?) and brings up invalid points. And the organizations investigating are stupid if they haven't been able to conclude that it's beyond Apple's power.
Done.
polyesterlester
Dec 6, 2004, 03:43 PM
Maybe we should all chip in and buy Mr. Porter this t-shirt:
http://www.bustedtees.com/product.php?name=yourretarded
:D
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