Apple has apparently succeeded in persuading the world's major
record labels to re-license their content for sale on its iTunes
Music Store (ITMS) for a flat-rate 99 cents 79 pence in the
UK per track. To date, label executives have been keen to
stress their demand for variable pricing higher prices for
new songs, lower prices for older material but they've
clearly been willing to let it pass this time.
By Team Register for The
Register.
This article has been reproduced with permission.
The deal follows Apple's latest round of licensing negotiations
with the world's biggest recorded-music companies, Universal, Sony
BMG, EMI and Warner. Apple has insisted that its pricing model is
the best way to drive forward the nascent digital music download
market because it's simple and easy for consumers to understand.
ITMS does support variable pricing for albums.
Of course, the labels may have ultimately felt Apple holds the
all the cards. ITMS accounts for around 80 per cent of digital
music download sales, largely thanks to the popularity of the iPod,
and the labels are unlikely to want to push their biggest download
seller too far. That said, downloads still account for a tiny
proportion of overall music sales.
© The Register
2006
