While the iTunes Store has long been known as the place that you can buy any song for US$0.99, with the advent of iTunes Plus, that changed. And, with iTunes Plus coming to the entire store – and DRM leaving – the pricing of music at iTunes changed substantially.
Variable Pricing
Variable pricing is the term used to describe services that sell downloadable content in which the prices for the content vary based on the preferences of the producers. This is the opposite of a flat-pricing model, in which the same price is applied to all items of the same type (i.e., all songs cost one price, all movies another).In April 2009, the iTunes Store began using variable pricing for individual songs. Under the earlier model, Apple dictated the $0.99 price to record companies who wanted to sell their music at the store. Under the variable pricing model, individual record companies now set the prices for their songs.
The structure of the new iTunes prices gives record companies – not Apple – control over the prices of songs at iTunes. In exchange, users get DRM-free music that sounds better (iTunes Plus is encoded at 256kbps, a higher rate than earlier music) – and a deal on upgrades.
iTunes' New Prices
As of April 2009, songs sold at the iTunes Store will have a three-tiered price structure:
- $0.69 - for back catalog songs
- $0.99 – for standard songs
- $1.29 – for new releases and popular tracks.
The price given to a song will be set by the record company that owns the song.
iTunes Plus Upgrade Fees
For users who want to upgrade their old iTunes Store-purchased music, the songs can be upgraded to DRM-free iTunes Plus for:
