Customers Willing To Pay Significantly More for Online Tunes, Survey Shows

Audio streaming services could charge more for their products and consumers would still pay for them, research from Atenga shows, said the firm in a news release Wednesday. ITunes could maximize revenue by raising its price from $25 annually to $15 monthly and Pandora could double its price from $5 to $10 per month, it said. Those surveyed were more conflicted over the issue of music choice versus quality, with about half responding that audio quality is less important than music choice. Those who preferred Spotify and YouTube, which allow users to select specific songs, not surprisingly showed more preference for choice over quality, the research shows. The survey of 857 American adults done by Atenga, a pricing consulting group, has a 95 percent confidence level with a margin of error of 2.5 percent.