Early Results On iTunes Price Increase: Sales Down... But Revenue Up
from the interesting... dept
It's still early, but the initial estimates on the impact on iTunes of higher priced songs on iTunes is that songs that got tagged with the $1.29 price saw their overall sales rankings drop. However, the indications were that the sales drop didn't outweigh the higher price. In other words, fewer units, but more overall revenue. It'll certainly be worth watching to see if the trend continues. Of course, the report only looked at the top 100 songs, doesn't factor in other things that may have caused sales to change, and seems to be lacking certain important data. But... still... as an early snapshot of what's happening, it's good to know. In the meantime, if you're a smart up-and-coming musician who recognizes that digital music sales are a tiny fraction of what you can be earning overall in the business, you should be doing everything possible to get your songs out there at the lower price, knowing that it'll help you stand out against the higher priced options, and you'll be able to recoup the difference through the other parts of your business model.