Apple set to shuffle iTunes prices

 

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By Simon Aughton

Posted on 27 Mar 2009 at 16:46

Apple has set the date when it will begin implementing variable pricing on the iTunes Store.

The LA Times says that Apple has informed record labels that the new pricing policy will come into effect on 7 April.

For hit singles that looks likely to mean a 25% price hike to 99p, something that labels have demanded for a long time but Apple has only recently conceded.

That hasn't pleased some record business insiders, who question the wisdom of making legal downloaders pay more.

"Wouldn't it make sense to try to price it cheaper instead of squeezing the handful of people who are still willing to pay for music?," asked Jim Guerinot, who manages bands including Nine Inch Nails, No Doubt and Offspring.

Some tracks will be reduced to 59p, if labels cut the wholesale price of music for Apple.

As quid pro quo for allowing variable pricing, Apple gets to drop DRM on all music on the store, a process that started in January.