Apple wins iTunes pricing battle

In this article, the music companies that deal with Apple were forced to comply with the 99 cent song price on Itunes, because of the success of Itunes.

Basically the music companies had to comply because they get revenue from Itunes and if they don't comply their songs will no longer be available.

This is a 1st degree type of price discrimination, because Itunes knows if they raise the price that buyers will not be willing to pay it.

Itunes wins this battle, because it doesn't do any damage to Apple not having those songs available, considering the Ipod's success and popularity and the fact that this program is compatable with it. Also, the music companies have more value still working with Apple then not using them at all.

Do you agree?