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iTunes Raising Prices in Face of Competition

iTunes Raises Price in Face of Competition
iTunes, now the world's largest music retailer, is under fire from many competitors, including Amazon's amazonmp3 service, which sells most popular tracks for $.99, but also offers plenty of other tracks at $.79 or less. So how does Apple respond to this pressure? Why, by raising prices on some tracks $.30, naturally.

Starting April 7, Apple will raise the prices of a number of its hottest tracks to $1.29 as part of a new "variable pricing" strategy that will allow music publishers to sell tracks at various price points. Hiking costs probably won't make many fans among consumers but there is at least some good news: Publishers can also sell tracks for less than $.99, which may open the door for smaller artists to get a little more traction in a very busy online store.

What remains to be seen is whether iPod, iPhone, and other iTunes users will stomach the price hike, or just start shopping somewhere else for the same tracks -- especially when "somewhere else" is usually just a few clicks away. [From: Los Angeles Times]

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Tags: amazon, apple, apple itunes, AppleItunes, business, iphone, ipod, itunes, music, online music, OnlineMusic, retail, shopping

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