David Emery Online

iTunes Price Changes Hurt Some Rankings

11 April 2009

Two days after the Apple iTunes Music Store raised prices on some individual tracks, there was evidence the increases have hurt the sales rankings of songs given the higher $1.29 price.

While it is difficult to say with certainty whether a price increase had resulted in less revenue, rough estimates reveal slight, negative changes in chart position would result in a positive change in revenue. The changes in chart position between Tuesday and Thursday, however, clearly show that higher prices had forced many songs to cede chart position to lower-priced songs.

It’s no real surprise to me that for chart ‘hits’ a higher price leads to lower sales – a chart-based purchase is more likely to be an impulse purchase, so it follows that that impulse is more likely to be quashed by a higher purchase price (especially when placed next to lots of other cheaper chart tracks).