Amp'd Dials Down Music Prices

by Peter Kafka, 12.06.05, Forbes.com

NEW YORK - How much does a digital song cost? At Apple Computer's store, a single goes for 99 cents. But buy the same tunes via Sprint Nextel's over-the-air download service through your mobile phone, and it will cost $2.50.

Both the wireless carrier and the music companies with which it works say that customers will pay a $1.50 premium for the opportunity to buy a song any time they want it, without being tethered to a computer.

But executives at new wireless phone service Amp'd Mobile, aimed at young customers with insatiable appetites for digital content, argue that logic is flawed. When Amp'd launches on Dec. 15, the carrier will sell over-the-air downloads for 99 cents.

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