Universal Music May Introduce Variable Wholesale Pricing Next Year

So says this story in Guardian…Universal Music Group, one of the biggest music labels, is likely to introduce variable wholesale prices for music downloads in 2006, at least in UK. This would increase the cost of top-rate singles by 50 per cent, a direct attack on Apple’s iTunes 79p flat-rate policy.

Guardian obtained a leaked copy of a contract between Universal and a smaller online retailer in the UK detailing the proposed prices. It specifies three price-bands for single tracks, dramatically increasing the wholesale price of some tracks and decreasing that of others.

Its move could force Apple to sell downloads at variable prices, something Steve Jobs has pitched his company firmly against.

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