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ITunes Overcharging
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Old 03-12-2004, 13:33   #1
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ITunes Overcharging

http://news.bbc.co.uk/1/hi/business/4065539.stm

I dont know why they just dont say APPLE over charge
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Old 03-12-2004, 13:40   #2
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Re: ITunes Overcharging

While I don't agree with the higher pricing you should note that iTunes is still the cheapest legal music download service
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Old 03-12-2004, 13:51   #3
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Re: ITunes Overcharging

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Back in September Apple defended the price differential, saying that "the underlying economic model in each country has an impact on how we price our track downloads".

"That's not unusual - look at the price of CDs in the US versus the UK," an Apple spokesman said.

"We believe the real comparison to be made is with the price of other track downloads in the UK."
Read: You guys live in Rip-off Britain. Get used to it
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Old 03-12-2004, 13:53   #4
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Re: ITunes Overcharging

itunes price - 79p
tescos price - 79p
mycokemusic - 75p

I don't see what the problem is with itunes pricing...
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Old 03-12-2004, 13:56   #5
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Re: ITunes Overcharging

Quote:
Originally Posted by Damien
While I don't agree with the higher pricing you should note that iTunes is still the cheapest legal music download service
Not sure where you got that bit of fiction from ...

Rhapsody - 79 cents a track

http://www.allofmp3.com, 1 cent per megabyte and afaik, owing to loopholes in Russian copyright law, perfectly legal.
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Old 03-12-2004, 14:19   #6
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Re: ITunes Overcharging

UK - 79p
Germany & France - 99 cents (68p)
US - 99 cents (51p)
Canada - 99 cents (43p)

Lets look at exchange rates.

Yesterday you could for the first time in a decade buy $1.94 for each £, so at a direct conversion the cost US1 = 51p. Due to the higher interst rates in the UK by comparison to the EU, Switzerland and the US, hot money is coming our way and weakening other currencies strenghtening the £.

If we compare to rates over time, the average £/$ rate for the last few years has been about.
1.5/£ so a 99c track is 66p + VAT (as most iTunes sales in the US are tax exempt and where they are not it is 99c+tax) = 77.55p.

You can do the same with the rest of the rates, but really this price discrepancy through direct comparison is due to the current strength of the £. The costs of running iTunes in the UK are not liekly to have come down as a result of this though so why should they change their prices daily dependant on exchange rate fluctuations.

Last edited by SMHarman; 03-12-2004 at 14:31.
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Old 03-12-2004, 14:54   #7
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Re: ITunes Overcharging

You might add that they have obviously resisted going for a nice round 99p, same as everywhere else ... it could've been worse!
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Old 03-12-2004, 14:59   #8
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Re: ITunes Overcharging

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Originally Posted by Chris T
You might add that they have obviously resisted going for a nice round 99p, same as everywhere else ... it could've been worse!
How is 99p nice and round? I thought the point of charging £ x.99 was that it is not nice and round?
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Old 03-12-2004, 15:03   #9
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Re: ITunes Overcharging

Quote:
Originally Posted by danielf
Read: You guys live in Rip-off Britain. Get used to it
I agree with that comment
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