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SMH: iTunes music store set to open

Once upon a time I looked forward to a time when the iTunes Music store would be available in Australia. I assumed, for instance, that the range and price of the music in Australia would be about the same as it is in the US.

Australians might be able to legally download music to iPod players as early as tomorrow, with Russell Crowe saying it was the launch date of Apple’s iTunes digital music store here.

The launch date has been a tightly-kept secret up until now, with Apple and record labels refusing to divulge exactly when the digital music store will open in Australia.

The US version of iTunes, which is only available to US credit card holders, has sold more than 300 million songs at a cost of $1.27 per track.

But actor, and occasional rocker, Russell Crowe told 2UE’s John Laws that iTunes Australia would cost $1.80 per track, a Queensland newspaper reports.

Even though US$0.99 is AU$1.27 Apple Australia are going to set the price at an indefensible AU$1.80. I realise they might have to hedge a little, but 41%?

The cost of tracks is largely determined by record companies, Mr Sarronwala said.

“Pricing is largely set by the recording industry and applies across the board to all digital music companies. The industry sets the wholesale prices, and from that retailers set their retail prices, meaning variations between the key players are not generally that dramatic,” he said.

What’s with that? Do they source their music from the local Australian music establishment or from the US? How much is the pound of flesh demanded by the local music industry?

A quick look at the UK and French stores indicates that the price of music might be universally higher outside the US. If French and UK iTunes users were able to buy US tracks they’d pay 78 eurocents, or 51 pence respectively. Though their local iTunes stores they pay 99 eurocents and 79 pence. Thats a 27% and 54% premium at current exchange rates. Ouch.

In that light, Australia doesn’t look quite so badly ripped off.

I’ll wait and see what the real price will be. Apple Australia may suprise us… in either direction. For instance, AU$1.80 doesn’t end in a 9…

Sigh