iTunes' variable pricing coincides with plummeting sales

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itunes-variable-pricing.jpgInitial reports from major labels are suggesting that the switch to variable pricing on iTunes has been a failure. According to ‘numerous sources’ sales decreases have been seen across the board since variable pricing was implemented at Macworld back in January.

But lets remember the statisticians’ mantra – correlation is not causation. Just because sales decreases have been seen alongside the implementation of variable pricing, it doesn’t mean that the latter is causing the former.

Just as likely is the effect of services like Spotify on consumers’ music-listening habits. Although the streaming service is unavailable in the States, where these figures are mostly likely from, there are plenty of other similar applications that consumers are beginning to explore.

As people shift from ownership of music to being happy with just access when they need it, sales will decrease. On the flipside, licensing revenues skyrocket, so the same amount of cash is still floating around for music creators – this isn’t the death of the music industry.

(via Digital Music News)

Duncan Geere