Linked by Thom Holwerda on Mon 2nd Apr 2007 15:23 UTC
Apple This morning, Apple and EMI announced the availabilty of DRM-free music in the iTunes Music Store. DRM-free songs will feature a higher audio quality (256kbps), and will cost USD/EUR 1.29 per song. They also announced that they are working on getting The Beatles' music in the iTMS.
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So it begins...
by BSDrama on Mon 2nd Apr 2007 15:36 UTC
BSDrama
Member since:
2006-11-27

But my question is: Why should European customers pay way more for a single song than Americans?

Been a long time since the Dollar and the Euro have been on a 1:1 parity.

Reply Score: 4

RE: So it begins...
by Axentrix on Mon 2nd Apr 2007 15:40 in reply to "So it begins..."
Axentrix Member since:
2005-12-16
RE[2]: So it begins...
by osterfrank on Mon 2nd Apr 2007 15:58 in reply to "RE: So it begins..."
osterfrank Member since:
2006-10-14

Even if you subtract the VAT, which is included in the European prices (15% - iTunes S.a.r.l. is located in Luxembourg), it's still unfair:

http://www.google.com/search?q=1.29%2F1.15+euro+in+usd

But it's even more unfair in Britain:

http://www.google.com/search?q=0.99%2F1.15+british+pounds+in+us...

Reply Parent Score: 4

RE: So it begins...
by mcduck on Mon 2nd Apr 2007 15:42 in reply to "So it begins..."
mcduck Member since:
2005-11-23

>>But my question is: Why should European customers pay way more for a single song than Americans?

Its actually quite simple: We can afford more.

Its the same reason a coke is cheaper in the US than in Europe, and why its cheaper in asia than in the US.

Reply Parent Score: 4

RE[2]: So it begins...
by dagw on Mon 2nd Apr 2007 15:53 in reply to "RE: So it begins..."
dagw Member since:
2005-07-06

It's probably more to do with tax. Apple has got to pay up to 25% tax on everything they sell in the EU. So while Apple my charge more in Europe they don't see more money.

So as to the question why we Europeans have to pay more, the answer is largely because we insist on voting in socialists.

Reply Parent Score: 5

RE: So it begins...
by SReilly on Mon 2nd Apr 2007 15:43 in reply to "So it begins..."
SReilly Member since:
2006-12-28

To be fair, the article only mentions US$, not .

Still,

So it begins...
indeed!

Reply Parent Score: 2

RE: So it begins...
by tristan on Mon 2nd Apr 2007 16:14 in reply to "So it begins..."
tristan Member since:
2006-02-01

But my question is: Why should European customers pay way more for a single song than Americans?

Been a long time since the Dollar and the Euro have been on a 1:1 parity.


You think that's bad, try living in the UK. Apple just love ripping us off. A $1.29 "premium" track will cost 99p here -- or $1.94.

To give you another example, the basic model Macbook costs $999.99 in the States, which works out at 509. In this country, I would have to part with 750 ($1471) to get my hands on one.

(And before anybody starts shouting about VAT, the VAT-free price on the Apple website is 637.45 -- that's $1250 or 25% more than the US list price.)

Shameful.

Edited 2007-04-02 16:17

Reply Parent Score: 4

RE[2]: So it begins...
by PowerMacX on Mon 2nd Apr 2007 16:19 in reply to "RE: So it begins..."
PowerMacX Member since:
2005-11-06

"You think that's bad, try living in the UK. Apple just love ripping us off. A $1.29 "premium" track will cost 99p here -- or $1.94.

To give you another example, the basic model Macbook costs $999.99 in the States, which works out at 509. In this country, I would have to part with 750 to get my hands on one. "


Not sure how accurate this is but according to Google the minimum wage per hour in the US is around $5 whereas for the UK is around 5.

Reply Parent Score: 4

RE[2]: So it begins...
by zerohalo on Mon 2nd Apr 2007 17:15 in reply to "RE: So it begins..."
zerohalo Member since:
2005-07-26

Apple just love ripping us off.


This has nothing to do with Apple or even the computer industry "ripping people off". The cost of living is generally higher in Europe across the board when compared with the US, and particularly in the UK. As a result, the same services and items command higher prices. Basic economics.

Reply Parent Score: 1

RE[2]: So it begins...
by binarycrusader on Mon 2nd Apr 2007 17:55 in reply to "RE: So it begins..."
binarycrusader Member since:
2005-07-06

But my question is: Why should European customers pay way more for a single song than Americans?

Been a long time since the Dollar and the Euro have been on a 1:1 parity.


You think that's bad, try living in the UK. Apple just love ripping us off. A $1.29 "premium" track will cost 99p here -- or $1.94.

To give you another example, the basic model Macbook costs $999.99 in the States, which works out at 509. In this country, I would have to part with 750 ($1471) to get my hands on one.

(And before anybody starts shouting about VAT, the VAT-free price on the Apple website is 637.45 -- that's $1250 or 25% more than the US list price.)

Shameful.Edited 2007-04-02 16:17


The illogical assertion that an item should cost the same in all countries shows a lack of understanding.

The cost of doing business is not the same in all countries. Why?

* Laws differ
* Cost of living differs
* Cost of bandwidth, supply, etc. differs
* Legal liability differs
* Market supply and demand differs
* etc.

The point is that something that costs a company $0.99 in the US, may cost them less or more in another country depending on that country in question. Also, since we have this little thing called the "free market" prices are somewhat driven by what consumers are willing to pay. In this case, I think it is a matter of the cost of doing business in "European" or "European-like" countries plus the price the market is willing to pay that is making the difference.

Reply Parent Score: 5

This is asking the wrong question
by alcibiades on Tue 3rd Apr 2007 07:05 in reply to "So it begins..."
alcibiades Member since:
2005-10-12

The question is why Apple obliges customers to buy from 'their local' iTunes store. UK customers, for instance, are obliged to buy from the UK and not the French store, and so buy in Sterling and not Euros.

The consequence is that they are charged more for a Tune than other members of the EC.

Now, prohibition of cross-border sales is an anti competitive barrier to trade in the EC. Similar to making Ohioans buy in Ohio and Texans buy in Texas, at different prices. Consequently Apple is now the object of a rather unpleasant action by the Commission which promises to take the shine off.

http://business.timesonline.co.uk/tol/business/industry_sectors/tec...

The moral is: this style of doing business, coercive and inconveniencing your customers and taking them for everything you can get, using technology to restrict choice and markets, is doomed. Its threshing around a bit as it dies, but its dying. We must hope Leopard, will be another mortal wound...

But its an amazingly tough beast.

Reply Parent Score: 3