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Quotable: Alain Levy, chief executive of EMI Music, …October 16th, 2007 at 6:06 pmSource:Valleywag The ITunes Store is no longer charging a premium for its DRM-free songs, also known as iTunes Plus. Prices now match its current catalog of 99-cent singles, and users are no longer confronted by an annoying pop-up. The trivial observation to make is that Amazon.com forced Apple’s hand by charging 99 cents for DRM-free MP3 files. But far more likely? Consumers made their disinterest in overpriced, annoying-to-download files clear by simply avoiding them, and Apple realized it had to cut the price. This, of course, doesn’t bode well for record labels’ plans to charge higher prices for hit songs. [Ars Technica]
Alain Levy, chief executive of EMI Music, still hasn’t gotten the memo about how to negotiate with Apple’s Steve Jobs. At a press conference in London, the executive spoke about variable pricing on iTunes, “We are having discussions which make us believe it will happen in the next 12 months.” Apparently, Levy didn’t notice Apple’s move to drop DRM-free tracks on iTunes to the standard 99-cents price. The bottom line: consumers like flat pricing, and Jobs is not oblivious to their preference. [WSJ]
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