The music business historically has been built around albums," explained Silverman. "This album-centrism is like saying the sun revolves around the Earth. We don't listen to albums now; we listen to collections of songs."
Of course, the reason for significant single-growth and slowed-album sales is due in part to iTunes hawking every song as a single for 99 cents. "Historically, the price of an album was five times greater than a single," said Silverman, who believes setting the price at a tenth of an album's cost was a mistake and that even $1.29 is too low. "It should've been a $1.99, and then we would've seen higher digital album sales because it would've been a bigger discount for buying an album." But both Silverman and Garland agreed that this is changing, citing the fact that about 14% of all of Universal Music's digital sales are for iTunes "Complete My Albums," a program where you receive credit for having already purchased the single, but have the option to upgrade and purchase the full album. This suggests the $9.99 price-tag is becoming approachable for consumers.
The music business historically has been built around albums," explained Silverman. "This album-centrism is like saying the sun revolves around the Earth. We don't listen to albums now; we listen to collections of songs." Of course, the reason for significant single-growth and slowed-album sales is due in part to iTunes hawking every song as a single for 99 cents. "Historically, the price of an album was five times greater than a single," said Silverman, who believes setting the price at a tenth of an album's cost was a mistake and that even $1.29 is too low. "It should've been a $1.99, and then we would've seen higher digital album sales because it would've been a bigger discount for buying an album." But both Silverman and Garland agreed that this is changing, citing the fact that about 14% of all of Universal Music's digital sales are for iTunes "Complete My Albums," a program where you receive credit for having already purchased the single, but have the option to upgrade and purchase the full album. This suggests the $9.99 price-tag is becoming approachable for consumers.
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