iTunes raises prices removes DRM

iTunes the Internet’s dominant digital music retailer, began selling some of its most-downloaded songs for $1.29 a piece. The new three tier systems have price breaks at 69 cents, 99 cents, and $1.29. The recording companies still decide the price and most new and most downloaded will be the $1.29. They also did away with copy-protection technology known as digital-rights management, or DRM, allowing customers to play more songs on devices other than Apple iPods. The question is will digital music shoppers start looking for the lowest price alternatives, including Amazon, which sells songs for 79 and 89 cents, or Wal-Mart, which sets prices at 64 cents, 94 cents, and $1.24. This will be interesting to see if 30 cents is enough to move people away from the iTunes store. The Amazon and Wal-Mart service have been around for over a year and they have not dented the iTunes business. A conversion needs to take place to move these non-iTunes purchased songs into the library. We have seen most people like to download and play music without any additional effort and it is one of the reasons the iTunes store has been so successful.

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