3UK Ups Price Of Music
3UK has increased the cost of the full-track downloads sold over its network, from 99p to 1.29 pounds (US$2.57). It’s not often you see an operator raising the price of music—normally they start high and are forced to lower the price. In this case 3UK started slightly high (iTunes sells songs for 79p in the UK) and went really high. “It’s not a significant increase but we have to reflect the price of providing the service,” said a spokesman for 3. “We weren’t making a loss before but the margin was very narrow”, reports NMA. Apparently the operator sells about a million full track downloads each month, and a similar number of music videos.
May 4, 2007 9:28 AM ET
Posted In: Entertainment, Mobile, Companies, Hutchison Whampoa, Countries, Europe
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May 4, 2007 8:12 PM
The answer surely is that the service is getting popular enough for Three to be able to afford to raise the price - that and people are getting an appettite for buying direct from the mobile. Three’s music videos have also done quite well.
May 7, 2007 7:46 AM
This is a very interesting development. I beleive they must want to decrease their downloading traffic. The number of tracks they sell must decline but they may be able to preserve revenue and profits.