New iTunes pricing model is imitated by competition

No longer is iTunes the only music download service that charges tiered prices for the songs. Competitive music services from Amazon, Wal-Mart, Lala and Real have also adjusted their pricing model, following Apple’s lead.

Phil Schiller, Apple’s deputy chief executive, announced at MacWorld Expo that the entire iTunes music collection would be available DRM-free starting in March. As a concession, the policy of fixed prices for the music numbers was abandoned, with which the music companies saw a long-cherished wish come true. On April 8, the new iTunes song price list went into effect, and the question was what it would do for iTunes’ competitiveness.

The music services of Amazon, Wal-Mart, Lala and Reals Rhapsody, among others, follow the market leader, so turns out now. Amazon, which, unlike iTunes, also sold single songs for less than 99 cents and also offered albums cheaper, has now put a price tag of $1.29 on some music tracks, while Lala also announced the introduction of the tiered pricing model on its blog. announced. At Lala, the price changes will be implemented in the coming weeks.

The supply of songs for 69 cents, the lowest of the three current rates on iTunes, is disappointing. It seems that the new pricing model of the music services will mainly stimulate the sale of albums, at the expense of individual songs. For example, Ars Technica notes that with the Rhapsody music service, all thirteen songs from Flo Rida’s album ROOTS cost $1.29 each. However, the entire album only costs $9.99, which Rhapsody believes would save you $6.78.