Ok, take a business plan that has worked for years and break it apart slightly to give users a sense of independence. There, that is the full business plan for iTunes. Their thoughts were good you know, just about 5 years late. After all the Napsters, Kazza, pirate bays, and bit torrents already had that idea. So iTunes idea was to take their idea and put a price on it. I’ve never been too much of a fan, but they have been somewhat successful. I mean even I purchased 1 album from them (Anthony Hamilton's Point of It All).
Ok it’s set, they’re following the same plan as freeware with a price and they sold a few billion. People are getting comfortable with this, and their sales are expanding by large percentages compared to falling physical sales. So of course with every business mind, when a product starts selling why not bump the price? I mean it’s a great idea for physical products when it costs more for distribution, but where is the overhead rising in digital music? Does it cost more not to upload? No, that's free. I just don’t see a reason for this price increase. And surprise surprise, their sales are down… again.
Now some songs are cheaper than their original .99, but with all the newest songs at 1.29 its a great business idea, and it looks good on paper if same sales continue.
In general this would have worked great… what, 10 years ago? Nice Try iTunes, its a good model. Just a little late. iTunes will either change their price or fall eventually, but with the low overhead and high profit it may take awhile.
I know I’m a little late on this but some people still didn’t know iTunes bumped their prices up so speak what you want about this.
From the mind of
- Take an idea from another site selling the same products for free
- Sell for an amount to help the artists out (good idea, i mean they still need to get paid)
- offer less than what some of the free sites give
- After some success, bump the price
- File chapter 11 so you can keep your Bentlys and million dollar home