May 2, 2006

Apple renewed contracts with the four major music groups and will sell its songs for $0.99 apiece, effectively winning the most recent Cold War between the technology company and the disgruntled major labels.

Two majors, Warner Music Group and EMI, publically called for variable pricing. Execs at Universal Music Group and Sony BMG were less vocal about the matter -- especially at UMG. Some execs agreed with Apple's Steve Jobs and felt changing the price would harm sales by making the process of buying downloads more difficult.

Of course, variable pricing on albums already exists -- to a small degree -- at iTunes. Songs, though, will stay at $0.99. Could album prices begin to rise even more now that single downloads are fixed through the life of these contracts?

Previously at Coolfer: A Vote For Variable Pricing

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Posted by Glenn at 10:16 AM | | | Apple | Digital Music | iTunes