June 16, 2004
Apple Pricing Rumors … or Reality?
About a month ago, there were rumors that the record labels had forced Apple to increase its iTunes prices. Steve Jobs and Apple immediately rebutted those claims. With the launch of iTunes Europe, I wonder if the unnamed source got some basic facts right but missed certain important details. iTunes Europe pricing is above the 99 cent per song price, with prices of €0.99 (roughly $1.20) and
Filed by Derek Slater at 11:17 pm under General news
3 Comments
Yes, I do have an idea. VAT in other countries is *much* more than things like sales tax in the US (upwards of 40% or so). VAT is also applied to *all* purchases, regardless of origin (online, etc.)
Also, if you take a look at the Euro music stores created by other companies, you’ll see that they offer a similar pricing scheme.
No conspiracy, just “what the market will bear”
The rise in prices is a direct result of trends in legislation and marketing. Laws increasingly restrict usage to certain marketing channels whos walls grow incrasingly high and so make escape more unlikely. We all saw this coming. But we were seduced by the whore Profit thinking we *all* could turn copyright into a revenue mechanism because we all should be paid for our sweat of the brow regardless from whom we stole our ideas. We’re getting the future we deserve.
Yes, VAT (sales tax) is higher in UK, but only 17%…less than 10% higher than California. So, by my math, it would go like this: .99 *1.17 = 1.16.
That said, EVERYTHING is more expensive here in UK (ex Californian, living in London for 3 years now). For media, computer, and electronics, you can figure just about dollar for pound ($1 = 1GBP). When you figure that a pound ranges from 1.5 to 1.8 dollars, the premium is MUCH HIGHER THAN VAT.
Though I’d agree it’s no conspiricy, it’s just capitalism.