Flat rate pricing ensured for I-Tunes
May 2, 2006 – 1:00 pmby Darren
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I-Tunes has become incredibly popular because of their flat-rate pricing model, and recent pacts with major music companies ensure that the flat-rate pricing will continue for some time.. Flat-rate pricing is one of the keys to the success of the I-Pod and I-Tunes, and Jobs feels it’s essential for continued prosperity:
“If they want to raise the prices, it means they are getting greedy,” Jobs said in a press conference last year. “If the price goes up, they (consumers) will go back to piracy and everybody loses.”
4 of the major music companies have been pushing hard for variable pricing in order to cash in on hot acts, but Jobs is vehement against the practice. So far, Ipod continues to have the upper hand due to their deft handling of Ipods.
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