Digital Music Sources and Price Elasticity

Holy crap. You ever notice how many places you can grab music from these days? Almost too many.

  • iTunes
  • Amazon
  • Amie Street
  • eMusic

And more.

So now when I want to buy something new there are five sources to check. Why not just get everything through iTunes? Because other places might have it cheaper. Not a few cents cheaper, but dollars.

The album I want may be in an Amazon Black Friday sale. Or it may be from an unknown artist, therefore even less than that on Amie Street. But wait, I still have all those eMusic credits I have to use up in 30 days.


Years ago I thought $9.99 was great for an album. Now I find myself browsing $5 albums just because they’re marked down, or delaying the purchase of a new album because Amazon might have a daily deal on it.

And there’s still free.

Competition is good, but is it any wonder that it’s hard to get people to buy downloads when there’s so many options and variable pricing?