Since Apple granted music labels the flexibility to set individual song prices between $0.69 and $1.29 on the iTunes Music Store, growth of digital music sales has slowed, one music executive has revealed.
According to Peter Kafka at MediaMemo, Warner Music Group revealed Tuesday that it has seen digital music sales slow down since the price increase took effect in April 2009. Digital album downloads grew 5 percent in December, down from 10 percent in the September quarter and 11 percent in the June quarter. Digital revenue is slowing as well: Warner saw 8 percent growth in the holiday quarter, versus 20 percent a year before.
Warner CEO Edgar Bronfman Jr. reportedly said the pricing change has been a “net positive” for Warner, but conceded that a 30 percent price increase during a recession was not the best move…
Do you think so? Idiot!
In early 2009, Apple convinced record labels to remove digital rights management from iTunes music downloads. But in the process, the Cupertino, Calif., company conceded price flexibility. Starting last April, some popular tracks saw a 30 percent increase in price, from 99 cents to $1.29.
Anyone believe the Music Barons have a clue about marketing to 21st Century consumers?