A lot of you seem to be upset by the new iTunes music pricing scheme released today.  At first, we were kind of ambivalent but when we dug deeper we can see the point.

Why does Apple need to charge $1.29 when Amazon charges $.99 or even $.79 for the same track.  Both are high quality DRM free music files. Apple sells way more music and isn’t even trying to make a profit (or so it says) so it isn’t a scalability or a margin issue. 

Read on why (surprise) the recording industry isn’t playing fair with Apple.

News today was that Amazon’s prices would also start hitting $1.29  If you look at Amazon’s top 100 Music sales, you’ll see some prices at $.79 and some as high as $1.29.  (Taken at 11:30 PM EST on April 8th).

But these $1.29 songs are few and far between, while most of Apple’s top 100 are $1.29.

The number one song in both stores shows significantly different prices: the Amazon Store has the Black Eyed Peas’ Boom Boom Pow for $.99, while iTunes charges $1.29.

Amazon’s price above, vs. iTunes price below.

The #2 song on each chart, Poker Face, by Lady GaGa produced an even bigger discrepancy.  Amazon has it for only $.79 while iTunes charges $1.29.

Update: Amazon has raised Pokerface to $.99


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