Itunes Essay

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Week 3 Case Assignment Analyzing Managerial Decisions iTunes Music Pricing Ch.7 Torrez Moore July 22, 2013 St. Leo University: MBA 540 Analysis Apple’s sales revenue from it’s downloads will increase not just because of the pricing adjustments with their flat pricing price but also the flexibility pricing will definitely increase with the old tracks being priced at a low cost. This will supplement for fewer sales on the new or popular tracks but statics show the older tracks will definitely increase. The increase in revenue from old tracks will supplement for the shortfall on the sale of the new tracks then the less popular and old tracks will balance the load because of increased revenue. Apple’s Computer iTunes Music Store allowed for consumers to upload the digital market to buy music by way of internet and also audio books. The Music Store and Apple’s iTunes are integrated and allow users to manage digital libraries. Doing the entire flat pricing policy, Apple has kept downloaded music price at 99.cent per-song. Most record companies were initially happy receiving 70.cent per-song accept Sony BMG Entertainment and Warner Music from Apple, they were not getting paid for downloaded music prior to this process (Brickley, Smith, & Zimmerman, 2009 p.232). Based on new and popular songs and the digital market getting bigger more and more record companies are not pleased with Apple’s flat pricing policy and record companies are pushing for more flexibility with new and popular tracks and are asking for higher pricing on these particular products. According to Brickley, Smith, & Zimmerman, (2009) “in 2008 was allowed by all major record companies to sale their music in the MP3 format because restricts users didn’t have to use digital locks from the songs each of the companies excluding EMI Group which required Apple to sell their music

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