Warner Music schooled in supply and demand by way of iTunes pricing

Feb 9, 2010
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Warner Music schooled in supply and demand by way of iTunes pricing

Warner Music Group has confirmed what most may have assumed all along  – increased iTunes pricing on various music tracks leads to slower sales of said music tracks.

Revenue growth for iTunes has decelerated to 8%, versus last year’s 20%, and digital sales growth fell to 5%, from 10% of last year.  Also pointed out is the fact that the current economic climate may very well have something to do with consumer reaction toward a price increase (note to music publishing companies: we’d prefer it if you don’t skyrocket your music prices, and if you do, try not to declare it during a recession).

Sensible to note that Bronfman believes that e-books have much more flexibility than music tracks, taking the book industry’s recent success “with the help of Apple, at raising prices above the $9.99 floor Amazon had set.”

[via AllThingsD]


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