April 12, 2004

Music prices

Music executives know profit is maximized when prices match the peak of sustainable demand. What they have not yet learned is that their price desires don't match consumers' desires. Raising prices on hot downloads is not going to strengthen the viability of the commercial download business model. My wife recently downloaded a $12.99 pop album off iTunes and had to think hard before buying at that price. In that arena, how will higher prices help the music industry improve its profitability? Posted by werty at April 12, 2004 12:21 PM