Digital Audio World

Musings and information on podcasting, digital audio, online streaming audio and home studio recording from Tim 'Gonzo' Gordon of

Tuesday, May 02, 2006

The Showdown at the iTunes Corral

iTunes Pricing To Hold At $.99

The record companies blinked first in the staredown. They wanted to install 'variable' pricing for the more popular digital downloads, but Steve Jobs said "uh-huh' (that means 'no').

Jobs had earlier called the record companies 'greedy.'

And when it comes down to it, iTunes and Apple are just like the corner record shop...only worldwide. So like any corner store, they should be able to set any price they want. The only thing the record companies control is the wholesale price. But apparently they didn't want to upset the apple cart. No pun intended.

As Jobs observed,
"Customers think the price is really good where it is. If the price goes up a lot, they'll go back to piracy. Then everybody loses."


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