iTunes Phone pricing: actually not bad
So the iTunes phone is finally coming out, and it looks like cellcos will be selling songs for $2 each.
Mark Evans and Om are not impressed. They wonder why anyone would pay $2 for a song when they can get the same song for $0.99 via the web.
But this overlooks the value of mobility and reach.
Kind of like asking why anyone would pay 10-40 cents/minute to make a call on a mobile phone when you can make the same call for 2 cents/minute at home.
That extra $1.01 per song is actually the value a consumer will be willing to pay to get the song they want NOW, at a bus station, nightclub, beach, or wherever.
I'm not sure if the premium for mobility is as important for consumers in buying songs as it is for calling someone, but it's probaby still worth something.