Instructions on how to Fall Fast from the Top (iTunes)

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

Keveeno Reeverts

Step 1

- Take an idea from another site selling the same products for free

Step 2

- Sell for an amount to help the artists out (good idea, i mean they still need to get paid)

Step 3

- offer less than what some of the free sites give

Step 4

- After some success, bump the price

Step 5

- File chapter 11 so you can keep your Bentlys and million dollar home

Instructions on how to Fall Fast from the Top (iTunes)

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?

-Jodi

Price Bumping – Value Jumping