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Digital Audio Insider is David Harrell's blog about the economics of music and other digital content. I write from the perspective of a musican who has self-released four albums with the indie rock band the Layaways.

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April 30, 2008

Cheaper Songs, More Expensive Albums
by David Harrell

Around this time last year, I noted that one result of pegging the single-song price at 99 cents is that individual songs within the iTunes store keep getting cheaper, at least on an inflation-adjusted basis.

As of Monday, the iTunes store is five years old. The CPI numbers aren't out yet for April, but for the five-year period ending in February 2008, the annualized inflation rate was 2.91%, with total cummulative inflation of 15.44%.

That translates into a current single-song iTunes price of 86 cents in April 2003 dollars. And, if inflation rates over the next five years are similar, iTunes customers in 2013 will be paying an inflation-adjusted equivalent of just 74 cents a track, assuming the 99-cent price remains:

inflation adjusted iTunes price

While you could calculate a similar inflation-adjusted "price drop" for $9.99 album downloads, album prices have been quietly creeping up within the iTunes store. "Deluxe" and bonus track versions of albums can hit $13.99, but it seems like $10.99 and $11.99 prices are becoming more common for the standard versions of new releases.

If iTunes prices were completely correlated with the CPI inflation rate, single songs would now be selling for $1.14. And the $9.99 album price would $11.53, so averaging the prices of those $10.99 and $11.99 albums gives you a cost that is essentially "keeping up with inflation."

related: Digital Downloads: Cheaper Every Day?

tags: digital music iTunes Apple AAPL inflation digital media prices

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THE LAYAWAYS

Out Now -- "Maybe Next Year" -- The New Holiday Album:

"This is a sweet treat, deliciously musical without being overbaked for mass media consumption." -- Hyperbolium

"Perfect listening to accompany whatever holiday preparations you may be making today." -- Bag of Songs

O Christmas Tree - free mp3 lyrics and song details
Away In A Manger - free mp3

Download from eMusic, iTunes, Amazon MP3, or Bandcamp. Listen to free streams at Last.fm.

"...about as melodic and hooky as indie pop can get." -- Absolute Powerpop

"Their laid-back, '60s era sounds are absolutely delightening." -- 3hive

"...melodic, garage-influenced shoegaze." -- RCRD LBL

Where The Conversation Ends - free mp3
January - free mp3
Keep It To Yourself - free mp3

Download from eMusic, iTunes, Amazon MP3, or CD Baby, stream it at Last.fm or Napster.

"The Layaways make fine indie pop. Hushed vocals interweave with understated buzzing guitars. The whole LP is a revelation from the start." -- Lost Music

"Catchy Guided by Voices-like rockers who lay it on sweetly and sincerely, just like Lionel Richie." -- WRUV Radio

Silence - free mp3 lyrics and song details
The Long Night - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it at Last.fm, Napster, or Rhapsody.

"These are songs that you want to take home with you, curl up with, hold them close -- and pray that they are still with you when you wake up." -- The Big Takeover

Let Me In - free mp3
Ocean Blue - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it at Last.fm, Napster, or Rhapsody.

More Layaways downloads:

the layaways website