Gadgets and Gizmos

Apple going to cut prices for iTunes downloads

Apple is to lower the prices it charges UK customers for iTunes downloads to bring them into line with Europe. Apple said it had sold music at a higher price in the UK because some music labels charge more for distribution rights. Steve Jobs, Apple chief executive, said: “This is an important step towards a pan-European marketplace for music.”

Consumers in the U.K. had to pay $1.55 per download, as opposed to $1.45 in 15 other European countries. Apple, which has sold more than 3 billion songs through its iTunes store since 2003, said the lower prices for songs on the U.K. iTunes store will take effect within six months.

They will match the standardized charges that exist across Europe, the company said. Apple also said it would “reconsider” any partnerships with U.K. record labels that do not lower wholesale prices within six months.

The price change will happen sometime in the next six months. In New Zealand, Apple charges $1.79 per track or on average $17.99 for a new album, which given the exchange rate compares reasonably well to our nearest neighbor, Australia where they pay $1.69 per track and $16.99 for an album. The Americans pay more than 50c less per track.

An album generally costs US$9.99 or $12.70 in our money. The Europeans would be ready to riot at that type of price premium! The European Commission (EU) said that it was not a price regulator and would not set a rate for Apple’s UK downloads.

A new price structure will be in effect in the next six months however and will put the UK in line with the 15 other EU countries receiving cheaper rates for their music.