Apple confirmed the price it sells songs through its iTunes digital music store will remain at 99 cents each. This came after months of bargaining with music companies that had been pushing for a variable pricing model, which charges more for new popular songs.
Since iTunes’ launch three years ago, Apple has charged US consumers 99 cents for each track – a uniform price that Steve Jobs, its chief executive, favours because of its simplicity for consumers.
Edgar Bronfman, Warner’s chief executive, and senior executives at EMI and Sony have in recent months supported variable pricing, which would allow them to charge more for new material from top artists. Universal has taken a more modest approach, suggesting that the market should be allowed to develop further before any adjustments are made.