Well they think all songs are worth more than 99 cents, and they want to go back to the CD era where they "bundle" 2 hit songs and some average songs for $18.
These bonehead companies apparently can't remember that it is Apple that popularized the digital purchase of music with the ease of use of iTunes (when the option is FREE file sharing).
So iTunes wins when competing with free file sharing.
The question is would iTunes win when the competition is "variable (high) pricing", "bundling" of songs at a higher price?
Their wont be an iTMS with fixed pricing to compete with. They cant pull out of iTMS yet because there isn't a viable alternative. So first they have to build that alternative.
Step 1. Support resellers who allows for variable pricing by offering lower cost and DRM free.
Step 2. Over time consumers move to the "superior" value
Step 3. Labels pull out of iTMS saying that "iTMS is bad for the consumer"
Step 4. Raise the price.
or
Step 1. Support resellers who allows for variable pricing by offering lower cost and DRM free.
Step 2. Over time consumers move to the "superior" value
Step 3. Apple gives in and allows for variable pricing
Step 4. Raise the price.