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6 comments

Wednesday, April 8, 2009 | 8:50am

Hip Hop Screwed the Hardest By iTunes Price Boost to $1.29

Posted by Juan

Could there be some prejudice associated with the pricing science?

iTunes Store

As of yesterday (April 7)  Apple’s iTunes, boosted the price of many hit singles and selected classic tracks to $1.29.  The move away from the long-standing blanked 99 cents pricing is what some believe is market research for record labels (who actually determine which tracks are premium) and the world’s largest music store to see just how much consumers are willing to pay to download their favorite joints.

Billboard.com writer Glenn People’s dissected the science of determining which tracks would receive the premium pricing.  In his examination of the current Top 100 tracks at iTunes, he determined that hip hop tracks on the chart were most likely to be raised to $1.29.  Hmmmmm.

Chart

When the price move when into effect yesterday, ten out of 20 hip hop tracks were raised to $1.29 from $0.99.  In contrast, only 29% (six of 21) country songs were raised to $1.29 and 25% (two of eight) rock songs were given the higher price. One out of seven (13%) alternative tracks was given the higher price. As for the other genres, 10 of 18 (36%) pop songs, zero of six (0%) soundtrack songs and three of eight (38%) of R&B songs were raised to $1.29.

So what’s the logic?  Could there be some genre bias associated?  People’s points out that although hip hop tracks on the top 100 chart have a very high average  position of 45.9 there is no correlation with iTunes determination on price.

The theory here is that music’s blazing tracks can withstand higher pricing because of demand.  I’m just a little curious as to why hip hop is left holding the check.  Granted other fans are paying the premiums for songs as well but not at the same rate as Hip Hop lovers. I don’t want to make a big deal about this until I know more information but is there not something fishy going on here?

I guess at the end of the day if you really want a song now you’ll pay the extra 30 cents or download it illegally.  If you’re not as thirsty you could always wait till the price drops.

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6 Responses to Hip Hop Screwed the Hardest By iTunes Price Boost to $1.29

  1. Cahmodity says:

    There is definitely something fishy going on with that, good pull Juan.

  2. Pchemgod says:

    Whether it’s a goofy-looking $600 pair of kicks, or $12 burger at a football game, or a song for $1.30; the nature of capitalism dictates that you charge as much as the market will bear for whatever you are selling. If nobody buys the songs at $1.30, I-tunes will surely drop the price.

    I don’t see bias here as much as I see capitalism.
    Q: What good is a $6.00 classical music price if nobody buys it?
    A: It’s worth as much as an unsold $1.30 Hip Hop song. Zero!

    Hip Hop is hot. They are gambling that people will pay more to have it. Only time will tell if they are right. They can’t make you pay, you have to choose to pay.

  3. Cahmodity says:

    Nice economics piece my friend, I agree with what you said that’s with anything pertaining to capitalism, but with that being said why aren’t all types of music prices raised? That’s the question at hand.

  4. naysayer says:

    Another reason to get it for free?

  5. bmac says:

    and this is when uTorrent comes in handy

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