Music download costs likely to vary

Music download costs likely to vary

EMI, one of the major players in the music industry, has demanded that charges of downloading songs from the internet should no longer be uniform. The music firm was not in unison with same pricing strategy for all songs used by Apple's iTunes.

Instead, they have insisted on a 'variable pricing' scheme according to which, the song downloads of big stars would be higher than the not so famous ones. EMI wants the variable pricing structure in place within a year.

EMI's share of worldwide market for recorded music ascended from 12.5 per cent to 13.1 per cent in the six months leading up to September 30. Similarly, the digital revenue of the company now contributes 4.9% of the total turnover. Last year, it accounted for only 2.1% of the overall company earnings.

According to an EMI spokeswoman, the company is in no way making an effort to increase their prices but only see this as a more just & flexible pricing system.

As per the present rates, Apple charges a standard price of $0.99 per track downloaded on iTunes.

But the company responsible for creating waves with its portable digital device sensation, iPod, might have to be back away from the current scheme considering the pressure being exerted on it by music publishers like Warner Music Group and of course EMI Music.

Alain Levy, chief executive of EMI, admitted that he had a tête-à-tête with Apple CEO Steve Jobs over this matter and is sure that Apple will definitely change its stance.

So confident was levy that he made a comment saying it is not whether Apple will bring into effect flexible pricing but when.

Ironically, in September, Mr. Jobs had lambasted the music industry by calling it greedy for wanting a rise in the rates of downloaded music. Jobs felt that if their desires were fulfilled, it could lead to a rise in piracy.

Warner Music Group CEO Edgar Bronfman Jr. objected to it terming the same-price policy for all singles as an unjust one for music industry, the artists, and the consumer. According to Edgar, it is the market demand that should de determine the price and not the retailer, in this case the Cupertino, California-based Apple.

Depending on popularity and star value, downloads can cost $0.99 or more, feels Bronfman. He also pointed out that the music business is the only one not utilising flexible pricing.