Thursday, September 23, 2004
Apple Earns Less Than One Nickel For Every iTunes Song?
Posted by Kent Pribbernow in "NEWS" @ 08:00 AM
"Record labels are demanding such a large cut from online music sales that several existing online music stores will eventually be forced to go under, The Independent cautions today. According to figures obtained by the publication, the labels are profiting more per digital sale than they would by selling the same music on CD."
This is truly eye opening news! 8O I have often wondered what kind of profit margins Apple was getting from each $.99 track, but I expected it to be somewhere around 25%. Never did I imagine a mere four cents. If this information is true, it would take several hundred million song downloads before Apple, or any online music store would begin turning a handsome profit. Whether the report is true or not, it does shed some interesting and alarming insight into the margins that copyright holders get from these music downloads.
This is truly eye opening news! 8O I have often wondered what kind of profit margins Apple was getting from each $.99 track, but I expected it to be somewhere around 25%. Never did I imagine a mere four cents. If this information is true, it would take several hundred million song downloads before Apple, or any online music store would begin turning a handsome profit. Whether the report is true or not, it does shed some interesting and alarming insight into the margins that copyright holders get from these music downloads.
