Archive for: increase

iTunes Releases Variable Pricing Model

The anticipation is now over, as music fans everywhere can now pay more for their favorite tracks on the iTunes Store. On Tuesday morning the iTunes store switched over to a variable pricing scheme with price points now at $1.29, 99 cents and 69 cents. This pricing model is aimed at increase the price of the most popular tracks on the iTunes store while at the same time decreasing the tracks that arent so popular.

Unsurprisingly, a number of top-ranked songs are now saddled with $1.29 tags.  That includes the top-three most-downloaded songs, specifically “Boom Boom Pow” by Black Eyed Peas, “Poker Face” by Lady Gaga, and “Right Round” by Flo Rida.  But a large number of popular tracks are retaining their 99-cent stickers, at least upon initial inspection.

Universal Music, Are They Starting To Adopt Digital Business Models Correctly?

In the last year or so it has been tough times for the major record labels. The majors have not really been moving into the digital as fast as they should, whilst at the same time not understanding the digital business models.

Whilst this still remains the case Universal have released their lastest quarters results, and they seem very surprising to me.

• $3.97 billion revenue for first 3Q’s of ’08
• + 3.5% without currency fluctuations
• + 33% for digital sales which “”more than offset” lower CD sales
• Earnings 21.8% to $516M before deduction of interest, tax and amortization
• Net is lower due to restructuring costs
• Full press release