Q1: Provide an argument for why a more variable pricing policy would increase Apple's Music Store sales revenue (compared to flat pricing ). Apple used the concept of variable pricing as they entered the world of digital music, in their efforts to identify pricing structures and implement pricing strategies that promote downloadable data. Varying prices affect the different cost of a commodity based on producers' preferences. Although this varies from the flat rate pricing model, where only one fixed price is used for similar items. Take the content of purchasing songs, they all cost one price and all movies will cost another. Apple conquered the music industry by introducing variable pricing through the iTunes music store. However, this (variable) pricing tool has not been welcomed with open arms by music executives in the industry, but Apple has demonstrated its pricing influence in delivering a product and winning over executives as a result of this pricing strategy and that the His politics were here to stay. .Q2: Why do you think Apple went from one to three prices in 2009? What types of songs do you think Apple tends to sell for the lowest prices? A company is in the market to make money and is always looking for ways to increase its profit margin. Therefore, if you consider that Apple entered this market in 2003, six years later they would be thinking about how to earn more. So if you lower the prices of music sold online, more people will buy that music, but music sold through other means would take a hit. However, to counteract this, you would offer the music you sell through other services cheaper or just low as you sell...... middle of paper ...... they do, what to profit from this sector of their business. However, I think that is the only goal of the major record companies because that was the goal before and why shouldn't it be now. The problem is that now the artist can market their music and this takes away revenue. Q6: Do you think Apple's ability to control the prices of downloaded music is likely to change in the future? Explain. At this point, I don't see anyone forcing Apple to do otherwise. Yes, Amazon, Google, Pandora and other multimedia services were born, but in my opinion Apple has total control of the market right now. Apple has dominated the downloaded music market. Maybe over time their market power will diminish, but I don't see it right now. The competition must offer better or more than what is currently offered.