Act surprised: Higher iTunes prices mean slower sales

It does boggle the mind to see companies making a move toward higher prices when consumers are looking for value. Consumers are willing to spend but they want to stretch their dollar further. When music can be had for free via torrents or filesharing sites, what makes music companies think that raising prices will generate more revenue, even if the song is popular, new, or highly sought after. You have to make purchasing on iTunes easier than downloading it as a torrent.

The cause of decelerating sales can be attributed the associated price hike in new or premium content, which received an unpopular 30% cost of living increase from $.99 to a more salty $1.29 price point. It turns out that people are reluctant to pay thirty cents more today for something that cost a buck yesterday. What is it with you crazy people and your fickle spending habits?

via Act surprised: Higher iTunes prices mean slower sales.