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story category iTunes Variable Pricing A Bit Of A Joke
Less expensive tracks are few and far between
(old news - 10:05AM Wednesday Apr 08 2009)
tags: prices · business · content
Back in January, you might recall that Apple bent to the music industry's demand for variable pricing, ditched their flat rate $.99 per song model, and announced a system where popular tracks would go for $1.29 -- and less popular tracks would be sold for $.69. At the time, this was sold as a cost benefit to consumers, who'd get a lot of older tracks for less money.

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Several months later, the new pricing has gone live. Gizmodo has dug through the iTunes store and finds, much like many people feared, that $.69 tracks to be few and far between. It would appear the music industry hasn't quite learned their lesson yet, and are more interested in jacking up prices on consumers than offering them truly compelling and inexpensive alternatives to piracy.

Those who are interested in how broadband and piracy are decimating the existing music business might be interested in this week's Digg interview with Nine Inch Nails frontman Trent Reznor, who's at the forefront of navigating music through this (r)evolution. Wired News (via Techdirt) quotes Reznor, who's being lauded a genius in tech sectors simply for admitting the old music industry is all but dead:
"I've said it before and I'll say it again: I don't think music should be free. But the climate is such that it's impossible for me to change that, because the record labels have established a sense of mistrust. So everything we've tried to do has been from the point of view of, 'What would I want if I were a fan? How would I want to be treated?' Now let's work back from that. Let's find a way for that to make sense and monetize it."
Update: It looks like Amazon and Walmart have unveiled new variable pricing plans as well.

Related:
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  2. Phorm Wants To Bribe You
  3. DirecTV's Yearly Price Hike Arrives
  4. Canadian Writers Think ISPs Should Pay Them
  5. Small ISPs Want FCC To Ban ESPN 360 Model
  6. The Metered Billing Fight Is About To Get Ugly
  7. Cogeco Metered Billing Goes Live, Confuses Customers
  8. Verizon's New Wireless Pricing Is An Insult
Forums » iTunes Variable Pricing A Bit Of A Joke
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Matt
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Amazon Comparison

I believe it was Engadget that had a Top-10 Tracks comparison between iTunes and the Amazon Music Store (256Kbps VBR MP3). The top 10 had the same songs, but the iTunes songs were $1.29 and the Amazon store's were $.99. Things that make you go hmmm.

morbo
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1 edit

Re: Amazon Comparison

recent CNET fight match between Amazon music store and iTunes had Amazon winning due in part to better pricing.

edit: link »reviews.cnet.com/4370-6454_7-745-101.html

Jeffrey
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said by Matt See Profile :

I believe it was Engadget that had a Top-10 Tracks comparison between iTunes and the Amazon Music Store (256Kbps VBR MP3). The top 10 had the same songs, but the iTunes songs were $1.29 and the Amazon store's were $.99. Things that make you go hmmm.
I bought the new U2 album from Amazon as my first Amazon music purchase. It was aobut 1/2 the cost of iTunes, and better quality, so I hear.
--
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[my ramblings]

tiger72
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i'm a BIG fan of the Amazon store. Of course, it helps that it's bundled on my phone...

Matt
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I've been more and more dissatisfied with iTunes (the application itself - it's bloated and ungodly slow) and was surprised to learn of how robust the Amazon store was. Since all my previously purchased iTunes music is unprotected (thanks Requiem!) and all my recent purchases have been iTunes Plus, I may take this opportunity to just use Amazon and Windows Media Player. I've wanted to do that for ages anyway as the iTunes application has always been awful.

A Beautiful Day

@ameritech.net

Re: Amazon Comparison

I finally deleted iTunes from my Mac entirely. Too many issues with it and it seems to constantly be updating something I don't need it for since I don't have any of Apple's iCrap. There are much more efficient and cheaper ways to legitimately acquire music, and the most interesting stuff is never on iTunes anyway.

peter_m
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3 edits
said by Matt See Profile :

I've been more and more dissatisfied with iTunes (the application itself - it's bloated and ungodly slow)...
...I've wanted to do that for ages anyway as the iTunes application has always been awful.
It is sometimes slow, specially on low ram, slower CPUs... but AWFUL it is not... iTunes and it's ease of use, it's proper integration with the iPod and the convenience of the iTunes music store have been a big part of the iPod's success... last I checked the iPod is the best selling music player... iTunes works fine!

Been using it for more then 2 years and I've had virtualy no issues. Anyhow, the price chnages in iTunes store are a joke and we are the losers but it has nothing to do with Apple. They sell what the record industry will allow them
to sell.

Peter

Matt
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Re: Amazon Comparison

said by peter_m See Profile :

said by Matt See Profile :

I've been more and more dissatisfied with iTunes (the application itself - it's bloated and ungodly slow)...
...I've wanted to do that for ages anyway as the iTunes application has always been awful.
It is sometimes slow, specially on low ram, slower CPUs... but AWFUL it is not... iTunes and it's ease of use, it's proper integration with the iPod and the convenience of the iTunes music store have been a big part of the iPod's success... last I checked the iPod is the best selling music player... iTunes works fine!
I have a quad-core CPU with 8GB of RAM. The application is bloated and slow.

jmn1207
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I use Rhapsody music and a Rhapsody-to-Go mp3 player for most of my music. If necessary, I have methods that allow me to record and permanently save any music that they have, which is lot.

When I stumble across something that I must have that is not available on Rhapsody, I use Amazon. Not for downloading music, but for purchasing CD's or albums. The price of most CD's at Amazon is about $7+$3 shipping for anything new, and even cheaper for used items. I just look for high vendor ratings when grabbing used items. So far I have not been burned with a scratched disc. When I get the CD, all I do is rip it to lossless FLAC and I rarely see the actual CD again. I'm also an Amazon Prime member, so whenever a sale on something I like is going on, I can have it shipped in 2 days for free.

The best thing about Amazon CD's is that they have practically everything. They have all of the Beatles CD's for sale. My latest purchase was Stereolab's "Sound-Dust" CD, that for some reason is never available for download purchase or subscription service play. Including shipping, I got it new for under $10. If you don't mind waiting for it get delivered, I think it is a better option.

Matt
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Re: Amazon Comparison

I am so done with CD's. I hate storing them, I hate having to switch them when I want to hear another artist, and I hate waiting on them.

Regardless, I rarely like an entire CD and won't even consider purchasing one unless I enjoy 50% of the songs off it. Being able to buy the exact song I like is a perfect fit for me. I was a HUGE cassette/CD single purchaser back in the day and I was highly upset when they went away.

On a personal note, I think I gain some warped sense of satisfaction from my purchase reflecting that I will not support filler songs on albums. Too many artists put CRAP on their CDs, then release a single or two that is good. That has been modus operandi for the rap industry for years and has bled across to the rock industry too. It's infuriating.

jmn1207
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Re: Amazon Comparison

I hear ya. I am usually very selective about any CD I do purchase. If I'm not comfortable about the quality of anything more than a song or two, I take my chances and go for used and cheap (reminds me of a girl I once knew), and this is only when there are no legal download options. And once I do get the CD, like you, I find them annoying at best when compared to newer distribution options in the same way that vinyl albums were a nuisance after CD's became popular. That is why the first thing I do is rip it to a more convenient format. Once I have it in a lossless format on my computer, I can use those files as the "master" for any conversions and distributions.

Music can make a ton of money (even more, I should say), but the industry needs to adapt more efficiently. They need more vision. The problem must be that the people that run the major labels simply do not have any sense of perspective with regards to their typical customers.

Well, I've used 2 sets of parenthesis in one comment, so it must be time for lunch.

GOLFnSUN
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said by Matt See Profile :

Regardless, I rarely like an entire CD and won't even consider purchasing one unless I enjoy 50% of the songs off it.
If you are older and like music from 50's, 60's, 70's, then you get the "BEST OF" compilations of artists, or best of various music genres. Almost every song in the collection were top 10 hits when they 1st came out. I bought an extensive CD collection 15 years ago that way. And then when PC storage got cheap, I transfered all those CD's to my computer, which is wired to the stereo system.
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Ytsejamer1

join:2008-01-18
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If you rarely like an entire cd and don't find it worth your money to buy, maybe you should look at the artist's your listening to. I mean, you can't expect Booby Spears to put out something like Pink Floyd's 'Dark Side of the Moon' or the Beatles 'Sgt Peppers'. If you are a fan of a particular band, sure some songs stick out more than others, but the rest should be decent enough that you like enough to buy their album. Maybe that's just me...and like you indicated - that strategy works for you.

If I really like an artist, I'll support them by buying the cd. If I don't, I don't buy it...nor do I steal it. But if it's out of print and I can't get it, I will "find" it via blogspot or something.

I too use Amazon to find some stuff out of print or off the radar...it's great when you can find an older cd used for like $1.51 with $3 shipping. Amazon has a treasure trove of stuff in their marketplace. Funny thing is, i like CDs in the car, but at home I enjoy putting on the Media Center with all of my albums ripped. Hmm....not sure why. Old habits die hard I guess.

Matt
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Re: Amazon Comparison

said by Ytsejamer1 See Profile :

If you rarely like an entire cd and don't find it worth your money to buy, maybe you should look at the artist's your listening to. I mean, you can't expect Booby Spears to put out something like Pink Floyd's 'Dark Side of the Moon' or the Beatles 'Sgt Peppers'.
Sorry, the artists I do enjoy enough to buy the whole CD don't put out a new one every other week. It's been 2-3 years since Tool put out their last one, but I hear they are working on a new one.

I like a LOT of music, but rarely like an entire CD.

biggbrother
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Amazon MP3 is great. I had never purchased a song online until I discovered Amazon MP3 when it came bundled on my phone.

But jmn1207 See Profile brings up an interesting point. Many digital albums on Amazon cost $9.99. You can buy the entire hardcopy CD and have it shipped to you for around that same price. They should sell the albums cheaper when you purchase it digitally.
--
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Matt
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Re: Amazon Comparison

said by biggbrother See Profile :

But jmn1207 See Profile brings up an interesting point. Many digital albums on Amazon cost $9.99. You can buy the entire hardcopy CD and have it shipped to you for around that same price. They should sell the albums cheaper when you purchase it digitally.
I think there is a convenience factor with digital downloads. I (and I'm sure others) will happily pay the same price for a digital download.

aaronwt
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1 edit
said by Matt See Profile :

I believe it was Engadget that had a Top-10 Tracks comparison between iTunes and the Amazon Music Store (256Kbps VBR MP3). The top 10 had the same songs, but the iTunes songs were $1.29 and the Amazon store's were $.99. Things that make you go hmmm.
I'll stick with Zune Marketplace. Since they use the MS points I only pay $10 to $14(I buy them when they are on sale)for 1600 point instead of the $20 retail price. So everything I purchase with the points costs me less.

Plus I prefer WMA instead of MP3 or AAC. Although the last few downloads I made from the Zune Marketplace was 256kbs MP3. The 192Kbs WMA music sounds noticeably better.

biggbrother
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Re: Amazon Comparison

said by aaronwt See Profile :

I'll stick with Zune Marketplace. Since they use the MS points I only pay $10 to $14(I buy them when they are on sale)for 1600 point instead of the $20 retail price. So everything I purchase with the points costs me less.
Wow. Paying more than $10 for an album is too much IMO. Forget about those crazy Borders Bookstore $20 retail prices. Those places are living in the dark ages.

Most outlets know that albums only really move at around $10.

A are those Zune Marketplace files free of DRM?
--
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1 edit

Re: Amazon Comparison

said by biggbrother See Profile :

said by aaronwt See Profile :

I'll stick with Zune Marketplace. Since they use the MS points I only pay $10 to $14(I buy them when they are on sale)for 1600 point instead of the $20 retail price. So everything I purchase with the points costs me less.
Wow. Paying more than $10 for an album is too much IMO. Forget about those crazy Borders Bookstore $20 retail prices. Those places are living in the dark ages.

Most outlets know that albums only really move at around $10.

A are those Zune Marketplace files free of DRM?
Most albums are around 800 points and I pay between $5 and $7 for 800 points.(1600 points I pay $10 to $14 while the retail price for 1600 points is $20)

I know the last few titles have been DRM free. I don't know if it's always been that way or just started. I've never really looked at it since I just put it on my Zune players and never had any problems doing that.

delusion ftl

@algx.net

from:
Derspankster See Profile

edit:

iTunes Variable Pricing A Joke

Sorry if the apple marketing machine has misled you to think otherwise.

Doctor Four
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Re: edit:

I was not fooled for a minute that iTunes was a joke. I abandoned it in favor of other means of getting music a long time ago.

That includes Rhapsody, Amazon MP3, eMusic, as well as the non-RIAA approved methods (IOW copyright infringing) such as torrents, p2p, Russian sites, and Usenet.
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said by delusion ftl :

iTunes Variable Pricing A Joke

Sorry if the apple marketing machine has misled you to think otherwise.
iTunes is truly a joke - jump lemmings!!!
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gateguy
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Re: edit:

Would you please provide alternatives?

My needs are:
Must sync to my music (a given, most aac/mp3 unprotected, can be re-ripped)
Must sync to my movies (all ripped)
Must sync to my photos (all jpgs)
Must sync to my calendar
Must run native on a Mac

Thanks for your response in advance.
--
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MightyPez

join:2002-05-01
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Re: edit:

Floola. Cross platform and actually offers a lot of features iTunes does not (video conversion is a biggy)

»www.floola.com/modules/wiwimod/

I don't think it syncs with Calender in OS X, but it does sync with Google Calender.
gateguy
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Re: edit:

Thanks for the heads up.

delusion ftl

@algx.net

Just to be clear:

Are you expecting a software product with "tunes" as the name to be responsible for:
Your photos
your calendar
your movies
your tv shows
your cell phone

How did you function before itunes? Were you unable to handle your files previously?
gateguy
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Re: edit:

Just to be clear.

I use iTunes to sync all of my data.
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crippy
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some place
»www.getsharepod.com/
gateguy
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Re: edit:

Thanks for a link. getsharepod is a .Net 2.0 application. I do not think it will work too well on my Mac. It might work under Mono, but I don't think the Mono implementation of Windows Forms is solid yet.

I don't think it is a viable solution to my needs.
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Limited time offer...

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What else can you say


BF69

join:2004-07-28
Camden, TN

right idea but backwards

Instead of raisng the prices of the new songs the old song should be lowered. 99 cents for new songs old song 49 cents at most. $1.29 should only be for people who want a song at a higher bitrate. Or how about a cheaper rate for people like me who don't give a shit about album art and that shit?

Boricua65

join:2002-01-26
Puerto Rico

Downloads

The music industry will never learn. NIN's Reznor is correct about the music industry and their model is pretty much dead. I like his line of thinking "What does the fans want?" and work back from there. The fans want good music without having to pay out the nose, hence the drop in revenue. Of course, piracy is being blamed for just about anything.
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See 6 replies to this post

Bit
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G-bye iTMS

I have bought thousands of tracks from iTMS, but never again. I'll be taking my business elsewhere.
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Re: G-bye iTMS

said by Bit See Profile :

I have bought thousands of tracks from iTMS, but never again. I'll be taking my business elsewhere.
I already have!

After I read about that crap of 1.29 and .69 I knew there would be few songs that were ever going to be .69.

Not to mention that if you look at the cost of a new album on itunes it is cheaper to go buy the CD in some cases and just rip the music. I don't think the Recording Industry will ever learn that their model of high cost is not going to stem the tide of illegal means.

Transmaster
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Re: G-bye iTMS

One question I have, do you have to "jailbreak" a Touch to use it with the other music services?.

Bit
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1 edit

Re: G-bye iTMS

No, so long as the other music you're buying isn't protected. I play Amazon's DRM free tracks on my iPod no problem and it automatically imports the tracks into iTunes.

Microsoft Playsforsure music would require additional software.

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said by Transmaster See Profile :

One question I have, do you have to "jailbreak" a Touch to use it with the other music services?.
Of course not. If that were the case nobody would be able to use their MP3 collections on their iPod.

I've always preferred the Amazon music store because I would rather have the works-with-everything MP3 format. AAC has not really proven itself to be superior. But, there are some things on iTunes that are not available in the Amazon store.

I honestly don't have a big problem with the price increase. Comapring this to my other life expenses, I don't see $1.30 as a huge expense for a song. Apple has never really been a low price leader. Plus, this is a very good thing for Amazon and other competitors if they can maintain pricing lower than iTMS. I'd rather see those guys get more market share just to keep things balanced.
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amungus
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lossless

Start selling lossless, and not their brand of it, I mean FLAC, and it might be interesting.

Otherwise, and besides, Rhapsody is my choice for online music. Better deal, better service, and everything available for purchase is 256kbps MP3 format... Is iTunes still @ 128kbps???

Ctrl Alt Del
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Re: lossless

iTunes is now 256kbps AAC.
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amungus
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Re: lossless

Cool thanks

...Yeah, FLAC would definitely be a major selling point...
I've purchased some live shows in this format before and it's awesome.

...turns out Rhapsody and others are also on board for the "variable" pricing...

»arstechnica.com/media/news/2009/···-too.ars

Why does iTunes always get mentioned so much, and other services do not???

Do people even realize there are (legal) alternatives to having to buy a track at a time?
grecco2

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said by amungus See Profile :

Start selling lossless, and not their brand of it, I mean FLAC, and it might be interesting.
I've never, and will not ever buy, lossy (compressed) music-period. Doesn't sound good. I would buy FLAC. Average person wouldn't, but I'm not average.
xrobertcmx
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Sorry

I abandoned iTunes before this ever came about. Once the Amazon store launched with 256Kbps Mp3's for the same price or $0.10 less and no DRM I never bought another song from iTunes. I never bought many to begin with, I always have preferred to have the Cd.
--
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grecco2

join:2000-10-14
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Re: Sorry

I'm with you. Compressed music may be convenient, but doesn't sound good-to me. I'd rather have quality over quantity of crappy sounding compressed audio files any day! Those that can't tell the difference between the two have already ruined their hearing, I suppose. Or have never heard a quality sounding piece of music (sonically) to begin with to hear the difference.

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Itunes blows anyway

Itunes? I used it once for 5 seconds and never again since it's so damn slow and bloated with junk.

CD's? such a waste. It's all about storing them on mp3 players and/or playing them off the hdd.
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MrMaster
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Stop the AMAZON and WALMART comparisons!

they just raised their prices as well.

and I was almost completely migrated over to legal music cause of Amazon.

They really don't want me to buy their music? Stupid
--
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BF69

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Re: Stop the AMAZON and WALMART comparisons!

said by MrMaster See Profile :

they just raised their prices as well.
WRONG Amzon had NOT raised their prices.

MrMaster
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Re: Stop the AMAZON and WALMART comparisons!

Click for full size
Click for full size
said by BF69 See Profile :

said by MrMaster See Profile :

they just raised their prices as well.
WRONG Amzon had NOT raised their prices.
What were you saying again?
--
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BF69

join:2004-07-28
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1 edit

Re: Stop the AMAZON and WALMART comparisons!

said by MrMaster See Profile :

said by BF69 See Profile :

said by MrMaster See Profile :

they just raised their prices as well.
WRONG Amzon had NOT raised their prices.
What were you saying again?
I'm saying you're wrong. Which part of that didn't you get? You found ONE song. Everything I checked were all 99 cents or LESS.

I just checked Amazon 8 of the top 100 songs are more than 99 cents. 17 of the top 200, 23 of the top 300 and 30 out of the top 400. 92.5% of the top 400 are 99 cents or less.

MrMaster
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Re: Stop the AMAZON and WALMART comparisons!

this is what you said:

I post screen shots showing that they are upping their prices.

Just because they are not ALL high doesn't mean they are not going to continue to increase the prices on other songs.

So please explain to me how I am still wrong? I posted screenshots showing higher prices and you yourself just stated "8 of the top 100 songs are more than 99 cents."
--
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Defiance82
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still sucks

I still think it sucks. At least with Zune you can pay a flat monthly fee and get everything you want.
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uald

@bellsouth.net

Re: still sucks

Yeah, and with Zune you get 10 downloads to keep as well. So it's $15 for 10 music downloads to keep (10 songs on Itunes = $12.90), so really you're paying $2 to be able to rent an unlimited amount of other songs.

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Megaupload, Rapidshare, Mediafire, Badongo, etc.!

Yay!
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Synthmeister

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Sorry, Amazon now has the same prices

For all you people out there whose loins are quivering in joyous ecstasy that evil, nefarious, cheatin' ne'r-do-well Apple is more expensive than Amazon and this fact will now bring on the Applcalyse of the entire military/industrial complex known as iTunes/iPods/iPhones, well, too bad.

Amazon (and Walmart) just matched Apple's prices.

cipater

join:2000-05-18
San Francisco, CA

Re: Sorry, Amazon now has the same prices

Yes, this is all being driven by the major labels' stupidity and greed. Unfortunately Apple had to go along with variable pricing in order to get the labels to agree to go all DRM-free. The labels are shooting themselves in the foot by making the pricing structures more complicated and expensive, especially in these recessionary times -- they'll just drive more people to piracy.

Another important thing to bear in mind is that Amazon lost money on all the tracks they sold for less money than iTMS. The whole purpose of the lower pricing from Amazon and WalMart was the record labels' desire to break Apple's dominance in online music sales. Didn't work.

I've actually switched back to buying albums on vinyl. Most titles I'm interested in are being issued in LP format now, and most of those come with a code for downloading a free digital copy of the album, so I get the best of both worlds there.

Don't like the iTunes application? Check out Songbird. Unfortunately their Mac version is Intel-only, but it's a very solid app.
--
"I can't understand why people are frightened of new ideas. I'm frightened of the old ones."- John Cage
maginethat

join:2003-12-06
Lake Stevens, WA

Cheaper yet...

www.lala.com simple, EXTREMELY affordable full CD swapping

mrchris
We don't miss you Bush
Premium
join:2002-10-01
North Babylon, NY

Legit

»freemetalalbums.wordpress.com

Solid_Snake
Snakeonia
Premium
join:2002-01-14
Fort Collins, CO
clubs:

casts

only thing i i use itunes for is podcasts.. if it weren't for that id have nothing to do with that wretched program

wings10
I Am Legend
Premium
join:2004-06-09
South Elgin, IL

Rhapsody.

I use Rhapsody.

jfmezei
Premium
join:2007-01-03
Beaconsfield, QC
·ELECTRONICBOX

100% DRM-free means they disabled many records

A side note:

The Itunes store now claims to be 100% itunes+.

What they've actually done is to make all still-DRM albums "this album is not available" error messsage.

So they still list those albums, pretend their ate itnues+, but you can't see the songs in them.

(exampe, jon anderson, album: animotion. This one was listed as itunes + for some time, but when you look at the individual songs, they were still in the low quality DRM-full crap.

pc2go

join:2003-08-21
Dayton, OH
·AT&T Midwest

Another alternative :)

The last few CDs I've purchased have been at two of the local Vietnam Vets thrift stores for $.99 or $1.99 each. Most thrift stores (Goodwill, Salvation Army) don't have many CDs but for whatever reason, these two have a very large selection of music and software CDs. Granted, you can't just walk in and get what you might be looking for, but I've had fun picking up some that I wouldn't otherwise give a listen to because they are so cheap. Sometimes the jewel cases are cracked and beat up but who doesn't have extra cases laying around from obsolete software?

And it's not just older music, I got Pink's newest CD there only a month or so after it came out. Saw Gwen Stefani's newest in the same batch. Of course, YMMV but hey, its for a good cause so why not at least check them out?
Forums » iTunes Variable Pricing A Bit Of A Joke


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