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News
Report: Apple & Major Labels Reach iTunes Pricing Agreement
Sunday, April 30th, 2006 at 3:00 PM - by Bryan Chaffin
Apple Computer has announced an agreement with four of the Big Five major record labels that leaves pricing for singles at the iTunes Music Store (iTMS), according to a CBS Marketwatch report. Universal, Warner Music , EMI and Sony BMG have all signed new agreements with Apple, though additional details are heretofore not available.
If confirmed, such a deal caps months of reports that record labels were attempting to get variable pricing at the iTMS that would allow them to charge more for some songs (specifically newer material from popular artists), while ostensibly charging less for older material.
Apple has resisted that, with company execs stating publicly that the $.99 price point for singles has been key to the iTMS's success, where Apple has sold more than one billion songs since April of 2003 when the iTMS was launched.
It's that success that reportedly won the argument for Apple in the long run. "The labels need Apple too much right now," one record executive told CBS Marketwatch.
iPodObserver.com is working on confirming the story with Apple.
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