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ExtraTorrent.cc > Articles > Track Sales Drop Thanks to iTunes Price Hike

Track Sales Drop Thanks to iTunes Price Hike

Track Sales Drop Thanks to iTunes Price Hike

Added: Wednesday, April 14th, 2010
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
Music industry executives suppose that consumers aren’t willing to pay $1.29 for as many digital singles as they were when sings were only $0.99.

20100410181907a.jpg

Since Apple turned to variable pricing on iTunes approximately a year ago, there were many of those who have wondered to see the effects it would cause. Part of them expected it to alienate the buyers, while the rest of observers assumed it to become a bad precedent by caving into the providers’ requests for increasing prices.

Well, now you can see what the results are, and it turned out that nobody got it right. Turning to figures, all you can see is the fact that the record industry manages to sell fewer tracks for the first three months of 2010 as compared to 2009. That is the first case of decrease since 2003. The decline amounted to 1%, as the sales are registered at 312.4 million tracks in 2010 vs 315.4 million songs in 2009.
According to record industry executives, the reason for it is that fewer buyers want to pay $1.29 for the digital hits than there did for 0.99 singles.

The calls for alarm were received by Warner Music Group in the beginning of the year, when the year-over-year statistics showed the unit growth of digital track equivalent album raised at only 5% in the last tree month of 2009, which was down as compared to 10% in the three month before and 11% in the beginning of 2009. The Group’s CEO, Edgar Bronfman Jr., admits that despite the price increase was a net positive, looking back they can see that the decision to increase prices by 30% within a recession was less likely a good idea at all.

There are no figures regarding revenue losses or gains, so you may only guess whether music labels earned more money selling fewer tracks at higher price. But anyway, this could hardly be a good sign. This part of entertainment industry was for a long time keeping sabotaging any decent distribution service of digital music appeared. Apple turned out to be the first and the only one so far trying to escape and save it from itself. That is exactly why it was a very bad sign to allow the price increase.

What is left for us is only to hope that the record industry will deign to open its eyes and see what’s going on with the figures and bring its attention to these statistics indicating lower sales figures.



By:
SaM
April 14th, 2010

Posted by: 
SaM

Date:  Wednesday, April 14th, 2010



Comments (2) (please add your comment »)

1
posted by Blocked (2010-04-14 21:06:01)
iamezaz avatarWell apple shud reconsider their decison of marketing strategy and profit making objective.ther is not much of a difference in the sales of "09 and "10 but it is just the beginning,sales will drop slowly and then it will cripple down apple in one way or the other.

2
posted by (2010-04-15 12:45:52)
katep avatarI am in shock that they did not try and blame file sharing lol



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