Watch Out iTunes, Artists Are Wising Up

Indie rock darlings The Presidents of the United States of America (PUSA) started the trend last week, launching an application available in the Apple AppStore for $2.99 that delivers the band's four albums plus extras and exclusives. While iTunes approves of the application—it must to make it available in the AppStore—the app gives fans a chance to listen to the band's entire catalog for one low price, roughly what it would cost to purchase just three songs going the traditional iTunes route. For now, the Melodeo-created application is only available for the iPhone and iPod Touch models.

In another jab at the iTunes model, media platform provider Kyte partnered up with Interscope Geffen A&M (IGA) to offer users artist-specific applications through the AppStore that give users access to photos, videos and other exclusive artist-created on-demand content. While the Kyte applications also inform users where to buy those artists' music and merchandise, it won't come as a surprise if the artists start offering music through their free applications to keep hungry fans happy. Currently, IGA has launched applications for artists The All American Rejects, The Pussycat Dolls, Soulja Boy Tell 'Em, Lady Gaga and Keri Hilson, with more to come.

To combat the influx of cheaper and sometimes free content from artists, iTunes this week made a bid to keep consumers paying. Apple and EMI are testing a new feature called iTunes Pass, which gives shoppers access to their favorite bands' iTunes-related releases with additional exclusive material over a certain time period.

1980s' British pop darlings Depeche Mode are the first to kick off an iTunes Pass package. Essentially, for $18.99 consumers buy the Depeche Mode iTunes Pass. The pass enables them to download two new Depeche Mode tunes: the new single "Wrong" and a remix of "Oh Well," which is exclusive to iTunes Pass holders. Users can download those songs before the full album is released on April 21. The iTunes Pass also grants buyers the full album download along with bonus tracks.

To up the ante, Apple said the Depeche Mode pass will be valid through June 16 and give pass holders access to other Depeche Mode content such as extended singles, remixes and videos as they become available through iTunes.

These new methods of making content available come as Apple wrestles with record labels about the cost of individual tracks and a after a long battle over offering DRM-free music.

Record labels have asked Apple for the ability to sell "content bundles" and set varying prices for individual tracks and albums. Come April, the 99-cent-per-song price point will just be one of three options, with some songs costing just 69 cents while others will hit $1.29. The price changes will be based on what specific labels charge Apple.

Record labels want more control over what they offer through iTunes and how that content is delivered. PUSA and Kyte have taken a fresh approach, offering either lower-cost or free content, while iTunes is actually bumping up the cost to offer users exclusive content from their favorite artists.

As the battle continues, users can expect labels and artists deliver content in more innovative, wallet-friendly ways. iTunes has to get on board, or users will take their money somewhere else.