We posted last month about how initial reports showed the then new $1.29 price point Big Music had convinced iTunes, Amazon, and other digital music retailers to adopt had caused pricier tunes to fall down the charts, how do things look now, some 4 weeks later?
The same if not worse-ish, according to the Register:
Billboard notes that after four weeks, both $1.29 and $0.99 songs have, as expected, experienced a decline in revenue, down 34.5 per cent and 29 per cent. But since $1.29 songs have a higher margin, the hike has raised more income than if the price had remained at 99 cents. How much? Billboard reckons $14,000 a week net. DMN confirms the trend but wonders if the net effect isn't negative overall.
Has the long-tail truly come off the online music business? Will the record labels continue to try and squeeze more and more out of the bestselling hits? Do we care? I know I barely thought twice about hitting the buy-button on $0.99 DRM-free, 256-bit iTunes music. At $1.29, however, psychological barrier or not, I think more than twice.
Maybe Steve Jobs was right?