Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices

“Apple Computer Inc. boss Steve Jobs pledged yesterday to repel ‘greedy’ record companies’ demands for higher music download prices, warning that any such move would encourage piracy… As their contracts with Apple come up for renewal, music companies are seeking to improve their take from sales through the U.S. iTunes site, which charges 99 cents (U.S.) per song. Prices are typically higher in Europe, Japan and other regions,” The Globe and Mail reports.

The Globe and Mail reports, “Mr. Jobs indicated he plans to stand firm. ‘Customers think the price is really good where it is,’ he said. ‘We’re trying to compete with piracy, we’re trying to pull people away from piracy and say, ‘You can buy these songs legally for a fair price,” he added. ‘But if the price goes up a lot, they’ll go back to piracy. Then everybody loses.'” Industry analyst Philip Leigh, who runs U.S. market research firm Inside Digital Media, said that as long as Apple controls the market for music players and paid-for downloads, ‘it’s going to be very difficult for the labels to avoid dealing with Steve Jobs on his terms.'”

Full article here.
This battle is just getting started.

Related articles:
Apple CEO Steve Jobs vows to stand firm in face of ‘greedy’ record companies – September 20, 2005
NYT’s Pogue to record companies: it’d be idiotic to mess with Apple iTunes Music Store prices – August 31, 2005
Apple CEO Steve Jobs prepares for pivotal fight on digital music prices – August 28, 2005
Record labels to push Apple for higher iTunes Music Store prices in 2006? – August 05, 2005
Record labels look to raise iTunes wholesale prices, music industry fears Apple’s market domination – March 05, 2005
Report: Apple CEO Steve Jobs ‘angered’ as music labels try to raise prices for downloads – February 28, 2005
Report: Music labels delay Euro iTunes Music Store fearing Apple domination – May 05, 2004
Greedy Big Five music labels looking to jack up iTunes songs to $2.49 each? – April 22, 2004

23 Comments

  1. RAISE the prices???? They should be lowering the prices so they make as much online as they do from real CD sales. They say they are loosing money to pirating so they should be trying to make legal downloads MORE attractive and increase the trend, not less attractive!!!

    Idiots, good thing they got Steve watching the shop for them.

  2. Trouble with variable pricing is add a whole layer of new costs in an already marginal music store business. As I said in another post:

    What the music labels don’t get -and Jobs does- is that as the world moves to the iPod it is going to buy, yet again, all the old music it already bought up to 4 times before..on 78’s, LP’s, tapes and CD’s. The prices for music being bought on its 4th format should be nominal – especially as iTunes distribution method carries zero cost to the labels.

    There needs to be whole re-think of how the business works…

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