News Archive for 05/08/27

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iTunes vs. music industry

08/27, 1:50am

Apple faces showdown with music industry over iTunes

After revolutionizing the music industry with its iTunes digital service, Apple now faces a major hurdles as the labels try to exert their influence to change iTunes' immensely popular pricing structure. While some music executives believe the higher, more complex structure could backfire, others have held out licensing, forcing Apple to launch iTunes Japan without Sony BMG and Warner Music Group. "Mr. Jobs is now girding for a showdown with at least two of the four major record companies over the price of songs on the iTunes service. If he loses, the one-price model that iTunes has adopted - 99 cents to download any song - could be replaced with a more complex structure that prices songs by popularity. A hot new single, for example, could sell for $1.49, while a golden oldie could go for substantially less than 99 cents.