Wringing More Profits Out Of Downloads

“Unburdened by manufacturing and distribution costs, online music was supposed to usher in a new era of inexpensive, easy-to-access music for consumers. In many cases, buying music online is still cheaper than shopping for CDs at retail outlets. But just a year after iTunes debuted with its 99-cent songs and mostly $9.99 albums, that affordable and straightforward pricing structure is already under pressure. All five major music companies are discussing ways to boost the price of single-song downloads on hot releases — to anywhere from $1.25 to as much as $2.49.”