99 Problems and 50 cent aint one
Source CNET
Apple: 99 cent music price tag staying
Last modified: May 7, 2004, 12:56 PM PDT
By John Borland
Staff Writer, CNET News.com
Apple Computer dismissed rumors Friday of rising single-song prices at its iTunes online music store, saying that it planned to maintain the price tag of 99 cents per song.
Reiterating comments made by Chief Executive Officer Steve Jobs last week, an Apple spokeswoman said the company is maintaining its single price tag for individual songs. The comment came in response to an article in the New York Post reporting the likelihood of higher prices as a result of new contracts with record labels. As earlier reported, some full-album prices have already begun to climb on the service.
"These rumors aren't true," Apple spokeswoman Natalie Sequeira said. "We have multiyear agreements with the labels and our prices remain 99 cents a track."
Apple's commitment to the 99 cent retail price point--which is shared by other music services such as Musicmatch--comes in spite of wholesale prices for music that are already beginning to fluctuate, according to record labels and other download services.
The big music labels are eager to move to a system where they can price prerelease or top singles differently than back-catalog tracks. This variable pricing...
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