Apple iTunes Goes DRM-Free, Activates Variable Pricing Model

Back in Janauary Phil Schiller announced in his keynote at Macworld Expo that Apple would soon be moving to a variable pricing model and provide their entire music collection to a DRM-Free, 256Kbps AAC music format. Well, today is the day that all of that has come to pass. Apple is now selling music on iTunes for 69¢, 99¢, and $1.29. Unfortunately, no one knows exactly how Apple and the studios go about pegging price points to individual songs, but it looks like most of the music listed in the iTunes’ “Top Songs” list will be selling for $1.29. iTunes users with existing lower-quality, DRM-encumbered music libraries, of course, can now “upgrade to iTunes Plus” at a 30¢ per song premium (music video upgrades are 60¢ and entire albums can be upgraded for 30 percent of the album price).

UPDATE: Ars Technica – Variable pricing spreads to Amazon, Lala, Rhapsody, Wal-Mart (4/8/09)

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1 Reaction to “Apple iTunes Goes DRM-Free, Activates Variable Pricing Model”

  1. Chad says:

    iTune raises their prices during a recession while Amazon is begin to gain momentum – not very smart! Simply put, iTunes is too expensive when compared to Amazon. I think you will gradually see Amazon gain in market share. Right now they are at 16%, soon it will hit 25% – just wait. They have a better prices system and have outstanding daily deals. I love their daily MP3 download – a complete album download for usually under $3 (most of the time). That’s where I get a good percentage of my music. I use the following page and gadget to track the daily deal so I never miss it: