Pricing Difference per Country

A bit of a wordy question. Apologies

I am a new user of the iTunes store. As I live in Japan, the Japanese store is obviously the only store I can use which is fine because I have found pretty much everything I want.

Now my question is, why is there such a disparity in the pricing between countries?? This is just not between the US and Japanese stores but all of them. A $0.99 song, standard US price, which on the Japanese store is ¥150 JPY, standard Japanese price, using the interbank rate +10% still only works out to ¥132 JPY. Even if you take into account wild fluctuation of the ForEx market, I think the difference to to big. Take the same ¥150 song, looking on the UK store would cost £0.79, standard UK price, would again using +10% interbank rate would just come to £0.68 so again I ask why??

Just to say, I still bought my songs at ¥150 because I have no alternative but to use the Japanese store for this is where I live.

commodore 64 Windows XP Pro

Posted on Jan 24, 2007 7:06 AM

Reply
4 replies

Jan 24, 2007 2:56 PM in response to Whirlpool

Whirlpool,

It is not unusual that an item would have a different retail price in different countries, although I agree you are looking at a pretty big disparity in the Japan store. Contrary to belief, the price is indeed set by Apple; in the USA store all songs are 99 cents no matter what the content provider would prefer. As a consumer, you need to judge for yourself whether the song is worth ¥150, and make your purchase decision accordingly.

Jan 24, 2007 3:24 PM in response to ed2345

Contrary to belief, the price is indeed set by Apple; in the USA store all songs are 99 cents no matter what the content provider would prefer.

Pricing is indeed determined largely by what Apple has been able to negotiate with the content owners (plus of course enough to cover costs and provide a small profit). In the US, Apple was able to negotiate a lower rate than they were able to in Japan. The Japanese record labels were very reluctant to license their tracks to Apple (which is why it took so long for a Japanese iTunes Store to appear at all), so Apple was forced to pay them more per track.

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Pricing Difference per Country

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