The labels should be far more concerned over the lack of revenue generated by digital music sales than is reflected in the article below. Creating a tiered pricing system is not going to move the needle for them. They have to take a good look at the deal they have with their partner Apple. Why not take a piece of iPod sales as well?
"After dominating the online music service business for over two years, Apple’s seminal iTunes Music Store service is about to face it’s biggest challenge yet. Unexpectedly, that challenge is not coming from Microsoft or its partners, but rather from the music industry that provided Apple with the contracts it needed to offer digital music to consumers. Apparently, the music industry is tired of Apple’s pricing schemes and they’d like to see consumers pay more for newer songs, and less for older songs. Apple is resisting, for now. But the outcome of this battle will likely determine how quickly digital music sales grow in the near future."
If they’re going to complicate their pricing structure like this, why not go “free market” and let the consumers and vendors (i.e., artists/labels) bid on the prices? Hit songs would go slightly high at the peak of demand, and the prices would ebb off as the songs’ popularity declined. iTunes, as service provider, could take a cut thereof – eBay style!