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I think pricing for music downloads is going to evolve beyond what was reported earlier today.
First, MP3s will be cheaper than uncompressed music files. The uncompressed music file you find on a CD is much better than an MP3. This is to be expected: MP3s are compressed to 3 or 5 megabytes – the original file is often 40 or 50 megabytes. It seems to me that an MP3 is worth maybe a third of what the uncompressed audio file is worth.
Second, hits are too valuable to price like other tracks. Most hot-selling CDs have just a few hit tracks. If a new track that no one’s heard of yet is worth 99 cents – what’s “Hot in Here” worth?
