WSJ: Steve Jobs Confirms iTunes Plus Price Drop

Discussion in 'Mac Apps and Mac App Store' started by RBMaraman, Oct 16, 2007.

Thread Status:
Not open for further replies.
  1. RBMaraman macrumors 65816

    RBMaraman

    Joined:
    Jul 25, 2002
    Location:
    Prospect, KY
    #1
    From The Wall Street Journal:

    http://online.wsj.com/article/SB119256135983660860.html?mod=hps_us_whats_news

    Apple Reduces Prices on iTunes Songs
    Without Anti-Copying Software
    By NICK WINGFIELD
    October 16, 2007 3:29 p.m.

    Apple Inc. is reducing the price of all songs on its iTunes Store without anti-copying software to 99 cents from $1.29, bringing Apple's prices on such tracks closer to those offered by Amazon.com Inc., Wal-Mart Stores Inc. and other rivals in online music.

    In an interview, Apple CEO Steve Jobs said music on iTunes Plus – the portion of Apple's online music store featuring songs without digital rights management, or DRM, anti-copying software – will feature the reduced price later today or tomorrow. That applies mainly to songs from EMI Group Plc, the only major recording company with which Apple has cut a deal for DRM-free music so far. Apple has also already begun adding new music to iTunes Plus from independent recording companies at 99 cents a song.

    Apple, of Cupertino, Calif., introduced iTunes Plus with music from EMI in May, in one of the most significant moves yet to abandon the anti-copying software that record companies once believed could help solve online piracy of music. But even with the advent of digital sales of music protected by DRM, piracy flourished. In the meantime, Apple came under growing criticism from various European consumer agencies and legislators because the company's hit iPod music players didn't work with most online rivals of the iTunes Store because of incompatible DRM systems, pressure that eased as more recording companies have begun selling music in the popular MP3 format without anti-copying software.

    Songs on iTunes Plus originally came at a premium though: 30% more than the standard 99 cent song price for tracks long available with DRM. "It's been very popular with our customers, and we're making it even more affordable," Mr. Jobs said.

    The price drop follows the recent entry of Amazon into the digital music market with DRM-free tracks from a broader array of recording companies, some of them for as low as 89 cents a song. Most MP3s on Wal-Mart's online store are 94 cents a track. Neither company so far has eaten meaningfully into the online business of iTunes, now the third largest retailer of music in the U.S.

    Write to Nick Wingfield at nick.wingfield@wsj.com
     
  2. psychofreak Retired

    psychofreak

    Joined:
    May 16, 2006
    Location:
    London
    #2
    This is the true beginning of the end for DRM...
     
  3. Blue Velvet Moderator emeritus

    Joined:
    Jul 4, 2004
Thread Status:
Not open for further replies.

Share This Page