Apple yesterday released it's new iTunes with the associated online store. Most songs are priced at $0.99 each. At first glance this seems reasonable but with a second look it's far too much. While the record industry consistently cites distribution as one of it's costs and artists consistently talk about how little they make from a typical album there should be a lower cost online. The cost to Apple of delivering a stream of bits is much lower than shipping plastic discs around the country. At this rate the average 10-15 song album will cost $10-$15.... the same as it does today at the record store. This seeming great idea ends up being yet another form of inflation in costs to the consumer.
by Joshua Brauer on April 29, 2003