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News |  28 Mar 2009 17:21 |  By RnMTeam

iTunes to hike rates from 7 April

MUMBAI: Apple's iTunes plans to increase the prices of hit singles and selected classic tracks to $1.29. With this price change, the online music store would be abandoning its 99-cent-only strategy.

Although Apple has not publicly announced the date, industry sources believe the move would be in effect from 7 April.

Apart from this price change, the online store will also lower the price of selected songs. In a scenario, where the physical sales have been hit, it is undoubtedly an attempt by the music industry to earn more revenue from digital downloads. Label executives contend the new pricing will allow them to offer packaged downloads of songs that might entice consumers to spend more on music.

According to the new development, releases from new artists would receive lower pricing and tracks from popular acts would boost of high pricing, as will classics. The variable pricing strategy also comes with removal of digital rights management (DRM) enabling buyers to copy and play their content on any mobile music player.

However, this move has fuelled criticisms from Music industry veterans who believe the timing of the 30 per cent hike in price is not justified in times of slowdown when music lovers would not prefer to spend on online music.

The iTunes store has reported sales of more than six billion songs since 2003, and it recently began selling as well as renting movies in high definition.

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