Variable Pricing on iTunes
April 7, 2009 1 Comment
Today is the day Apple ends its long-standing practice of $.99 for every song on iTunes. There are now three tiers, with the old price joined by $1.29 for some popular tracks and $.69 for some forgotten ones. They’re basically hoping that demand for online singles is inelastic (or, for those of you who haven’t taken Basic Economics, that a 30% increase in price will lead to less than a 30% decrease in units sold, and vice versa for the $.69 tracks).
