A lot of people have been talking about the iTunes rumor, in which the company will allegedly increase the prices of popular new releases. Some say this is good, as it signals to the audience what is good. Personally, I think it's not a good move, as I believe the market for digital music consumption is highly elastic -- i.e. you'll get more sales and overall revenue if you lower the price. I also think raising the price increases the appeal of piracy.

But Seth Godin quotes Jeff Bezos and illustrates a great point in the process:

Which leads us to the wisdom of Jeff Bezos. There are two kinds of companies, Jeff says. Companies that work to lower prices (like Amazon, most of the time) and companies that work to raise prices (like the music industry, all of the time).

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