May 1 2006
Apple Computer today revealed it had renewed contracts with the four largest record companies to sell songs through its iTunes digital store at 99 cents each. The agreements came after months of bargaining and speculation, and were a defeat for music companies that had been pushing for a variable pricing model.
The unified $.99 price is a favorite of Apple CEO Steve Jobs, who points out that it’s really simple for customers to understand. The negotiation supposedly got a bit dodgy at times, with Steve last year publicly labelling the industry “greedy”. However, several music executives privately acknowledge that they have little leverage over Mr Jobs.
But then, who does?[via Financial Times]