Earlier in the semester I posted on a story stating that iTunes raised the price by 30 cents of some of their hottest singles. While sales have dropped 6%, some of the more popular songs are still selling at a normal rate. Because of this news, Apple can more than likely declare this as a victory.
To me, this shows that Apple can probably get away with raising single prices in the future if marketed right. They didn't raise the prices of every song, just the hot sellers. I would assume that they know that people are going to get the song they want given that the price isn't ridiculous. Raising the price 30 cents shouldn't ruffle the feathers of too many people. I know they don't ruffle mine.
http://gigaom.com/2009/11/12/with-itunes-variable-pricing-fewer-hit-song-sales-still-mean-more-money-for-apple/
-Marcus Hall
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When I first heard of this variable pricing thing for iTunes, I thought it was an interesting move. Sales have possibly dropped due to other factors as well, six percent could be considered a major drop, it depends on how you look at the situation. Either way, I highly doubt we will see Apple losing revenue through iTunes at any time. I don't buy from iTunes myself, I prefer physical copies of CDs. But if I were a purchaser, if songs I were interested in suddenly had that price hike, I would be a little irritated at that. 30¢ is really small though, so it would not bother me enough to not purchase the track.
ReplyDelete- Derek Jenkins