Music-Download Pricing Drifts Away From 99-Cent Comfort Zone
April 8, 2009, E-Commerce Times

Online music sellers, such as Apple and Amazon, are tinkering with their pricing models, changing the standard 99 cent sticker price per song, and introducing new price points ranging from 69 cents to $1.29 based on a song’s popularity. Since these vendors are not necessarily in agreement on what songs sell for how much, this ushers in a new era of price competition as consumers must now comparison shop and consider other factors, such as sound quality, when deciding from which vendor to make their purchase.

"I think this is going to set off to a far greater degree than the industry has seen thus far competition among Internet music providers," said Fred Koenigsberg, Intellectual Property partner in White & Case's New York office.

Besides the variety of vendors, new competition -- especially if it winds up boosting prices overall -- could finally make popular the subscription-based online music model, Koenigsberg suggested.

"If I knew how this would all sort out, I would be a rich guy," he quipped.