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iTunes Price Hikes Hurting Track Sales
Monday, April 13th, 2009 at 9:46 AM - by Jeff Gamet
The price hike to US$1.29 for certain tracks at the iTunes Store seems to have had an immediate effect: Many of the higher priced tracks aren't selling as well as they were before the increase.
After only two days with higher prices, Billboard noted that higher priced tracks were losing chart positions to $0.99 tracks.
Wednesday, the day after the price increase went into effect, songs priced at $1.29 lost an average of 5.3 places on the chart, and songs priced at $0.99 gained an average of 2.5 places. Seven of the songs priced at $1.29 had been $0.99 on Tuesday, and they lost an average of 1.9 chart positions.
Moving into Thursday, the trend continued with 53 $0.99 songs climbing on average 1.66 places on the chart, and 47 songs costing $1.29 losing two chart positions.
While two days worth of data doesn't necessarily indicate a trend, it does show that, at least for now, customers prefer the $0.99 per track price point. If the sales pattern continues, the resistance to $1.29 tracks could start impacting already dropping record label profits -- which is exactly what the labels don't want.
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