Posted tagged ‘Kindle’

Did Apple Pivot on Media Pricing with Glee?

February 8, 2010

Cast your eyes back in time, to the early days of the iTunes Music Store. Apple’s DRM concession, some say, was part of a bargain to get music labels on board to assure a large library of music for the iPod. Part of Apple’s strategy was to avoid variable pricing, keeping all songs the same price, $0.99. Given how hard Apple fought for single pricing, it is interesting that they eventually gave up, first as the “iTunes Music Plus” DRM-free tracks, then just bagging it completely and going to a 3-tier model.

Why the change? Why did Apple pivot on this issue when they are notoriously unbending when they really believe in what they want?