Fergie's Tech Blog

Apple Renews Flat-Rate iTunes Music Contracts

Adam Pasick writes for Reuters.

Apple Computer has renewed contracts with the world's four largest music companies to sell songs through its iTunes Music Store, after blocking their attempts to end iTunes' flat-rate pricing scheme, Apple said on Tuesday.

Apple Chief Executive Steve Jobs argued that offering songs for a single price -- 99 cents in the United States, 79 pence in Britain -- was essential in weaning consumers off the illicit downloads that have ravaged the music industry.

"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."

posted by Fergie @ 5/02/2006 09:50:00 AM