Mystery labels call for download price hike
- Added:
- Feb 28, 2005
The move has angered the likes of Apple's Steve Jobs, Universal Music and Sony BMG, who are eager not to disrupt the fledgling sector. They believe the digital download sector is still not mature enough to hike prices.
They are also concerned that a hike could push customers back towards sites which offer illegal downloads, refuelling internet piracy which is believed to cost the industry some $2.4bn a year.
The wholesale price of a track is thought to be around 65c, but the success of Apple's iTunes online music store, which to date has sold more than 200m songs and accounts for some 65% of the download market, has raised the eyebrows of music executives who are desperate to shore up profits as the singles market has decayed.
Despite the fact that downloads still only account for some 2% of total music sales, some executives think the time is right to increase prices by 10-15%, bringing them into line with mobile ringtones.
Meanwhile, the British Phonographic Industry (BPI) has announced it is to delay the inclusion of music downloads into the UK's official music charts. The BPI believes that the intended launch date of 20 March is too early to ensure that many independent labels are better represented online. Downloads will now be included from the 17 April chart onwards.
