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Recording labels, Apple divided over pricing

Time: 21:33 EST/02:33 GMT | News Source: MSNBC | Posted By: Erick Cordero

Three years ago, Apple Computer Inc. chief executive Steve Jobs persuaded major recording companies to buy into his vision of a simple, one-price-fits-all online music store.

As Apple�s iTunes grew into the undisputed king of digital music sales, recording companies welcomed the revenues to cushion a five-year decline in CD sales.

Now, however, some labels feel hamstrung by Jobs� insistence on pricing all tracks at 99 cents. With the labels expected to enter into music licensing discussions with Apple this year, any moves by Apple to abandon uniform pricing will test whether music fans are willing to pay more to download music that many only a few years ago acquired for free.

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