Record labels: iTunes should cost more, US$ 2.49 per song

April 27, 2004

Macworld reports us that according to the major record labels, Apple's
iTunes music download service is too cheap. Currently you can download songs for
US$ 0.99 per song but the top five record labels (Universal Music Group,
EMI, BMG, Sony and Warner Music) would prefer a price ranging from US$ 1.25 up to US$ 2.49 per
song.

This would mean that legally downloading songs
via the Internet would cost more than purchasing an album in the
stores! It thus comes as no surprise that critics say that a price increase
would simply kill the iTunes service:

"This is counter to everything the record companies should be
doing. If anything, they should be cutting prices to make it more
attractive to download music legally. Instead, this move will push online
music junkies back into the world of file sharing. After all, who wants to
pay more for less?

"If the price hike happens it would be more logical
to buy a CD. You might pay a couple bucks more, but that extra money buys
pretty packaging, better sound quality, often some sort of video extra
and, significantly, use unrestricted by Digital Rights Management.

"The record industry doesn't understand that the
reason people flocked to free downloading services is because music simply
costs too much."