Price Bumping – Value Jumping

For all of us “legal” music downloader’s, the days of the .99 across the board tracks on iTunes are over.

I’m not surprised because the strategy is tried and true; lure us into a feeling and once we are hooked on it, bump the price of the experience up. Most of us are still hooked into the easy and popular way to legally get our music. So we will whine, but will crave our Apple fix. They do have rebuttals planned for our whining over this price increase, in the form of value added programs that jump at us in the form of “passes” to make us feel special. The Fray’s iTunes “pass” accompanies the release of the featured track. This pass is set at $17.00 and delivers songs, video’s and photos over a time frame in hopes to retain fans over the long haul.

Innovation and freeware supporters, Nine Inch Nails, are coming out with an app for the iPhone in hopes of connecting their fans interactively with the intent of being a fine “up-selling” group. “ One of the biggest wake-up calls of my career was when I saw a record contract," Reznor says. "I said, 'Wait — you sell it for $18.98 and I make 80 cents? And I have to pay you back the money you lent me to make it and then you own it? Who the fuck made that rule? Oh! The record labels made it because artists are dumb and they'll sign anything' — like I did." (NIN iPhone App Extends Reznor's Innovative Run)

So, who will rule? Free and up-selling or expensive and value-added?



Anonymous said...

This sort of makes me mad (well currently $ in general makes me mad). A company like Apple may be seeing less profits, but I'm guessing they're still seeing profits. Since they're seeing less though they feel they have to get more from us. This is like my apartment management company increasing my utilities because the economy is bad, but they're still making money w/ expensive rent. I can't see raising the prices for iTunes tracks being a good move for Apple. Alright, that's my blog rant for the day. cheers

Tooth said...

Well, this will further encourage me to just go out and buy the physical cd. I think that if you just want one track from and artist because the rest aren't worth it, why give them the time of day?