Apple Confirms iTunes Overhaul

Not that Apple has had any trouble leading the market in digital downloads, but with competitors such as Amazon.com gaining an edge by undercutting prices, iTunes seemed to be behind the technological curve. During a press conference in San Francisco this week, though, Apple V.P. Phillip Schiller announced an overhaul in iTunes’ pricing structure that would once again allow the Mac application to stay on top.

Not that Apple has had any trouble leading the market in digital downloads, but with competitors such as Amazon.com gaining an edge by undercutting prices, iTunes seemed to be behind the technological curve. During a press conference in San Francisco this week, though, Apple V.P. Phillip Schiller announced an overhaul in iTunes’ pricing structure that would once again allow the Mac application to stay on top.

Instead of the traditional 99 cents per song, Schiller said the new plan would place most songs at 69 cents, while leaving a handful at the standard price, and raising more popular tunes to $1.29. No changes have been reported concerning a change in album prices, though, which may allow other mp3 sites a legitimate challenge to the digital-download giant.

Also, Apple has stated they will drop the majority of DRM-protected music files, which would allow users more options for their purchases. While EMI has already allowed their songs to be downloaded DRM-free, other major labels Sony/BMG, Universal Music Group and Warner will soon follow suit, as well as a number of independent labels. The change includes a higher-quality download at 256 kpbs and over-the-air downloads to the iPhone 3G will also now be available.