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New prices for iTunes downloads

7 April 09 16:11 GMT

Apple has introduced a new three-tier pricing system for downloading tracks from its iTunes online store.

Downloads now cost either 59p, 79p or 99p per track - most songs used to sell at a standard price of 79p.

They will now be Digital Rights Management (DRM) free so can be used on all players and not just Apple's iPod.

Announcing the changes in January, chief executive Steve Jobs said prices would be based on what record labels charged Apple.

New releases will now often be priced 99p.

The move comes after major labels said the price of a song should reflect how much buyers were willing to pay for it. They hope it will make music sales more profitable.

Removing copy protection software from the downloads could spell the end of unpopular DRM-limited music.

The changes come a day after rival Amazon dropped the price of more than 100 bestselling songs on its MP3 site, including number one Poker Face by Lady GaGa, to 29p.

Amazon's site, launched in December, has more than five million tracks for sale compared with Apple's catalogue of more than 10 million.

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