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Should Apple adopt tiered pricing for its downloads?(The big question)

Music Week

| October 01, 2005 | COPYRIGHT 2005 CMP Information Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Apple CEO Steve Jobs last week used a conference speech to accuse record companies of "greed" for pressing for iTunes to introduce a tiered pricing structure. Should Apple be more flexible or is its blanket price the right policy?

Iain Forsyth, Mute Records

"Tiered pricing is inevitable if iTunes are to continually grow their depth of catalogue, it makes no sense that there's tracks on iTunes you can't buy 'unbundled' right now due to their length, but an album can't be 'bundle only' when an artist wishes it to be."

Ben Drury, 7 Digital

"There are two issues here. I am a believer in variable pricing and we have always supported it. We have seen consumers are willing to pay more for something special, for example the official Band Aid download sold tens of thousands of copies despite being priced at 1.49 [pounds sterling]. The second issue is labels putting wholesale prices up and, at such all early time in the market, any large price hikes could be dangerous."

Leanne Sharman, Napster

"This dispute highlights the teething problems involved in trying to migrate high street shoppers to a pure online store, which is why we believe that subscription is a far better proposition for labels, consumers and MSPs"

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