MarketWatch is reporting that EMI Music's chief executive, Alain Levy, expects that the
iTunes Music Store will be switching to variable song pricing within the next 12 months. The alleged new scheme--which Steve Jobs has commented reflects the greediness of record companies--the most popular artists' songs (which are owned by the record companies) will be priced higher than the current US$0.99, while songs by lesser-known artists (who do not give labels a cut) will be priced lower than $0.99 cents.
Fine with me.
I think this reflects the big labels' ignorance with regard to the fundamental shift that is taking place, which is removing control from the labels, and placing it in the hands of artists. Most notably, those artists who own their own music, i.e. unsigned bands. In this shift, radio is becoming less of a driving force in what people listen to, and other channels, such as podcasting, are increasing in popularity.
The push by labels such as EMI to milk the cash cow songs will only expedite this shift. This is called "economic Darwinism".