Tracks that music cartel hiked to $1.29 on Apple’s iTunes Store show chart declines

“Two days after the Apple iTunes Music Store raised prices on some individual tracks, there was evidence the increases have hurt the sales rankings of songs given the higher $1.29 price,” Glenn Peoples reports for Billboard.

“On Wednesday, one day after the price increase, the iTunes Top 100 chart had 40 songs priced at $1.29 and 60 with the original $0.99 price point. The $1.29 songs lost an average of 5.3 places on the chart while the $0.99 songs gained an average of 2.5 chart positions,” Peoples reports.

“Seven of Wednesday’s $1.29 songs had been priced at $0.99 on Tuesday (there were 33 songs priced at $1.29 on Tuesday morning). Those seven songs lost an average of 1.9 chart positions from Tuesday to Wednesday; one of them gained ground, eight lost position and one remained the same. The remaining 33 songs priced at $1.29, whose prices went unchanged from Tuesday to Wednesday, lost an average of 7.7 chart positions,” Peoples reports.

“The difference in rankings is magnified at higher positions on the chart. A song that drops from #7 to #10, for example, could lose about 4,500 units over two days but gain an incremental $3,600,” Peoples reports. “For a price increase (to $1.29 from $0.99) to result in an equal or greater amount of revenue, unit sales would to drop by no less than 23.3%. On the most recent track download chart, the different between #42 and #45 was only 3.5%. One has to move up to #6 on the chart to get to a difference greater than 23.3%. The difference between the #6 and the #3 chart positions equals a 30% drop in unit sales while the difference between #7 and #4 is a 19% drop in unit sales.”

“This analysis does not take into account sales trends that would have existed with the absence of price changes,” Peoples reports.

Full article here.

MacDailyNews Take: We can just imagine the greedy music label honchos: “That’s okay, the individual product can drop, as long as they don’t drop too much and offset our profits!”

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