Comments on: Will consumers determine iTunes prices?

With seemingly everyone lamenting that iTunes' songs will now cost $1.29, they should remember that consumers determine prices--at least in theory.

[ljavierd]

I've been a client of itunes for about one year , and i thought that the 99 cents songs were GREAT . Now its so unfair that they change the prices to 1.29 cents ( We are in crisis times itunes!!!!) . You know that the bad thing that is gonna happend is that the people is gonna that buying more of the 99 cents song insted of the 1.29. SO! , ALL the 1.29 songs are gonna go Down on sells.. thats for sure.. ( I M NOT GONNA PAY THAT FOR A SONG.. ITS A 30% UP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!) your crazy itunes!!! , from now on .. i'm not sure if im gonna keep buying songs on itunes..... You know that the big LOSER right here are the artist in first place (That i feel very sorry for them , because i am a huge fan of music) ...BAD MOVE itunes .. GOOOO to HELLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL , Don't play with US and with the MUSIC ARTIST.

I was presented with my first opportunity to pay $1.29 for a song on iTunes. I quickly went to Amazon.com and paid $0.99. I'll be buying most of my music from Amazon, as long as iTunes is higher.

[ikramerica--2008]

There is also the time value of money argument here. I assume that you use iTunes to organize your music and upload it to the iPod? Otherwise, you wouldn't have gone to the iStore to begin with.

So, if you do, how much time is it going to take to go to the Web compare the price to see if it's cheaper or more expensive (in the future, it may not always be cheaper), download with Amazon if it's cheaper, then import it into iTunes? 1 extra minute minimum? Do this a lot, it's $18 an hour you are saving. Is your free time worth more or less than $18 an hour? It depends on who you are I guess...

[sting7k]

I only just started buying songs on iTunes since it went DRM free. I will never buy anything for above 99 cents. I am pretty surprised at many of the older catalog titles that are 69 cents since I am looking at mostly older stuff. I have several friends who are doing the same. If I see a song that is $1.29 I check AmazonMP3 to see if they still have it at 99 cents; but they seem to be going the same route now.

[OTPhotos]

New terms, but this is classic Price Elasticity of Demand. Can you raise the price to the magic point that optimizes revenues vs. lost sales and more importantly, recognize that you're at the maximum/best price without going over it and losing money on the new strategy.
iTunes is in it for the long haul. They can take the hits for the short term and still be here tomorrow. It won't take long before the 99 cent song is a distant memory and we all think 3-tier pricing is normal.

[HlLLARY CLITON]

I certainly want to pay more for music so I'll be joining iTunes.....NOT