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The Studios Want Higher Prices, but Jobs Says No

Steve Jobs admits that the record companies are making pressures

By Alex Andreescu, Mac Editor

20th of September 2005, 13:48 GMT

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Before opening the Apple Expo conference, which took place in Paris, Steve Jobs talked to the journalists, and admitted that the recording studios are forcing him to increase the price.

Steve Jobs warned that employing new prices would encourage the users to return to their old "piracy" habits, which is still present despite the new laws and lawsuits.

Jobs didn't specify the companies which are forcing him to adopt this
new price, but Apple's CEO said they were greedy. In his opinion, the companies gain more by selling songs by piece rather than CDs.

Despite their efforts, Jobs is determined to keep the 99 cent price (or equivalent). The only exception to the 99 cent rule is iTunes Japonia, where approximately 10% of the songs have a price tag higher than $1.

The first rumors related to the fact that Sony BMG Music Entertainment and Warner Music Group want iTunes to increase the prices appeared in late August, but they weren't confirmed. Of the 99 cents, the companies get 70 cents.

One of the reasons for the music companies' determination to increase the prices is the fact that, over the last months, several similar services, such as Real Networks Rhapsody and Yahoo Music Unlimited, have appeared. Another company which is rumored to launch an online music service is Amazon.


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