Warner CEO: iTunes price increase led to lower sales, recession might also factor in
2/10/2010 12:28:00 PM
kenmouse
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Don't pat yourself on the back too much for calling this one, but Warner CEO Edgar Bronfman Jr. has now confirmed what many have suspected: higher iTunes pricing has led to slightly slower sales. Specifically, he says that while the variable pricing introduced early last year has been a "net positive" for the company, revenue growth on iTunes slowed to just eight percent in the last quarter, compared to a hefty 20 percent a year earlier. He is also quick to point out, however, that raising prices 30 percent during a recession may not have been the best idea in hindsight. Interestingly, Bronfman seems to think that e-books actually stand a better chance at holding to up to price increases than music, noting that the "book publishing industry, on the iPad, has much more flexibility than the music industry had."
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