harpercollins – Gadget Teaser https://www.gadgetteaser.com Tracking the gadget and tech revolution Wed, 10 Feb 2010 16:22:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.10 Digital music price flexibility resulted in slower sales https://www.gadgetteaser.com/2010/02/10/digital-music-price-flexibility-resulted-in-slower-sales/ Wed, 10 Feb 2010 16:22:29 +0000 https://www.gadgetteaser.com/?p=2718 Warner Music Group delivered some interesting news in the wake of the Macmillan/Amazon standoff. When Warner was finally given pricing flexibility for its iTunes content last April it kicked off a slow decline in sales growth. As Warner put things, year to year “digital track equivalent album unit growth” was down from 10 percent in […]

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]]> iTunes sales slow with price flexibility.Warner Music Group delivered some interesting news in the wake of the Macmillan/Amazon standoff. When Warner was finally given pricing flexibility for its iTunes content last April it kicked off a slow decline in sales growth.

As Warner put things, year to year “digital track equivalent album unit growth” was down from 10 percent in the September quarter to just 5 percent for the December quarter. We can still blame the recession in part, but the decline didn’t begin until prices went up. As Peter Kafka at AllThingsD notes, the digital music business is much more mature than the ebook industry. Also, despite the decline in sales growth, Warner CEO Edgar Bronfman Jr. said the change has been a net positive for his company.

Despite the warnings for publishers in this news, I still think the ebook industry is young enough to pull of the price increase without much negative impact.

Source: AllThingsD

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