Apple Launches Massive iTunes Pricing Shake-Up

Apple’s new three-tier pricing system has come into effect on its iTunes music store.

Digital downloads will now cost users 59p, 79p or 99p, compared to the previous standard price of 79p.

All songs will also be free of Digital Rights Management (DRM) technology, enabling them to be played on most MP3 players.

The shake-up, originally outlined in January, follows pressure from record labels for Apple to offer tracks at a price consumers are willing to pay.

Therefore, new releases will often cost users 99p, while songs from an artists’ back catalogue will be cheaper.

In January, Apple's CEO Steve Jobs said the new system reflected the charges Apple incurs from record labels.

But its launch comes in the same week that Amazon began offering popular new songs for as little as 29p.

The online company’s MP3 store currently offers five million tracks, all of which are DRM-free.