Apple has announced a new three-tier pricing strategy, which means UK prices for songs change to 59 pence, 79 pence and 99 pence.

This is the first time since 2003 that Apple has adopted a new pricing scheme and although it means that some newer songs will be pricier to purchase, it does mean that back-catalogue tracks are cheaper.

In fact, Apple insists that there will be 10 cheaper priced songs for every higher priced tune in the store.

Amazon drops prices

Speaking to Reuters about the new prices, an unnamed music executive said: "We're thinking outside of the disc to reach a new generation of consumers who are able to consume music on any device, it's not just the track any more."

In a bid to compete against the might of iTunes this week, Amazon announced it was discounting 100 of its tracks, including Lady Gaga's 'Poker Face' and Lily Allen's 'The Fear'.

As iTunes has around 70 per cent of the online music market, Amazon may have to discount more tunes if it is to properly compete.

Via Reuters