Why did Amazon Wal-Mart Follow iTunes raised their price?”
Amazon, Wal-Mart follow iTunes’ lead, raise prices Author’s pic By Charles Starrett Senior Editor, iLounge Published: Wednesday, April 8, 2009 News Category: Digital Media Both Amazon MP3 and Wal-Mart have raised prices on select digital songs following the iTunes Store’s move to variable pricing yesterday. Select tracks on Amazon’s MP3 store are now $1.29, matching iTunes’ top-tier pricing, while Wal-Mart has raised certain songs from $.94 to $1.24. Amazon’s decision to raise prices may seem unusual given that the service actually cut the price of many top-selling songs in its UK store ahead of the iTunes Store’s price hikes, cutting the minimum price on songs from 0.59 pounds to 0.29, or from roughly $.87 to $.43. CNet writer Matt Rosoff, however, suggests it wasn’t Amazon’s choice. “I can’t imagine Amazon’s excited about raising prices in a recession—they’re probably responding to price increases by the record labels, which were made possible by Apple’s capitulation,” Rosoff writes.
One day after iTunes upped the price for some of its DRM-free digital downloads to $1.29, Amazon.com and Wal-Mart have also increased their prices to $1.29 and $1.24, respectively. Of the top 100 MP3 downloads currently listed on Amazon.com, eight of them are now priced at $1.29, up from 99 cents. Those include selections from Jamie Foxx, Beyonce, Britney Spears, Kings of Leon, Brad Paisley, Journey, and The Fray. Other Amazon tracks are available for 79 cents and 89 cents. “As with any product on Amazon.com, product pricing is subject to change,” an Amazon spokeswoman said in an e-mail. “At Amazon.com we are continually working to bring value to our customers, through low pricing, selection, and convenience.” On Wal-Mart’s MP3 store, 17 of the top 100 are now priced at $1.24. They also include songs
