The dominant iTunes Store sets the tone for the paid download space, a field that includes Napster, Rhapsody, and AmazonMP3. Already, a shift towards variable pricing on iTunes is rippling across the sector, and causing at least one early shift. A quick gander onto AmazonMP3 reveals more than few $1.29 downloads, a change first noticed by C|Net journalist Matt Rosoff.
Thanks to Apple, Amazon and its competitors are now faced with higher wholesale costs, a shift that forces higher pricing. The end result is quite predictable, especially considering the razor-thin margins that paid downloads afford. But at least one competitor - eMusic - has flatly refused to elevate its payment structure, one that bundles download allocations into monthly subscription charges. Then again, eMusic mostly sells songs from independent labels, a group that has show more willingness to accept lower price points.
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