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Apple changes iTunes pricing

Computer maker, at Macworld, unveils tiered pricing for songs, as well as a new 17-inch laptop and revisions to software programs.

Last Updated: January 6, 2009: 2:16 PM ET

NEW YORK ( -- Apple unveiled a change in the pricing structure for its iTunes music downloads Tuesday, ending the 99- cents-a-song pricing that has helped iTunes dominate the industry.

At the Macworld 2009 show for developers in San Francisco, the computer maker also revealed a new 17-inch version of its MacBook Pro laptop that the company said offers a longer battery life.

Additionally, Apple announced revisions to its iLife and iWork software packages.

The announcements were made by Senior Vice President Phil Schiller, who delivered the show keynote in place of CEO Steve Jobs.

Schiller said iTunes will now offer three price points for songs: 69 cents, 99 cents and $1.29. It will also offer all of the 10 million songs in its library without copy protection, and will allow iPhone users to download songs through 3G wireless networks.

In a press release accompanying the announcement, Apple said the pricing of a song will be based on what music labels charge. The labels that have agreed to the pricing include the four biggest - Universal Music Group, Sony BMG, Warner Music Group and EMI.

Many in the industry has been critical of Apple's 99-cent pricing, with some executives saying that it cut into profits on hit songs that could sell at a higher price.

Schiller said some 6 billion songs have been downloaded from the iTunes Store since its inception in 2003.

Link to complete article:
Apple revises iTunes pricing, offers new 17-inch laptop - Jan. 6, 2009
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