Apple would like to break even or make a little profit from their iTunes service, but instead have to rely on its sale of hardware accessories such as the iPod. Unfortunately, Apple is also forced to protect their tracks and software with DRM restrictions in order for the labels to allow Apple to deliver their music.
|
Read the full story here. |
We previously reported on what appears like Apple ripping off the musicians , but apparently Apple ends up having to pay out for all the running costs and the music industry are making a fortune from their 65% cut. All the music industry has to do is provide Apple the tracks and even after paying the artists their 10% or so cut; they still get over a 50% cut in what a consumer pays on an iTunes song with very little work involved!
Discuss about online music services and file sharing on our Music Downloads, P2P & Legal Issues Forum" target="_blank" rel="nofollow" >Music Downloads, P2P & Legal Issues Forum.
Source: The Register
Next: Hardware manufacturer TerraTec Electronic teams with Ulead
Previous: Sony, Bertelsmann merging to form worlds largest music label
Share your files or switch to services outside the US, like allofmp3 and weblisten.
A good place for info about these services:
www.museekster.com/legalmusic.htm
Why would anyone want to invest in equipment to sell another companies product just to break even. I wish someone would spend millions of dollars to help me sell a product and give all the profits to me, and they either lose money or break even. That would be great. Hey Apple my address is......
So Apple gets to be the apple of the public's eye for offering the music, they increase their 'cool' rating, and they sell more hardware.
Why is that so tough to understand?
::
Take all your sales from iPod invest in more TV ads, and maybe people will buy more songs, thus you make a profit!
I used to work at a movie theatre and for those that don't know. Basically the theatre keeps none of the money you pay for the ticket. All that money goes back to hollywood. The idea is that they get people in the theatre with the movies and once they're there the theatre will makes it's money off the pop-corn and food they sell.
It seems like a good idea but in practice it doesn't work a lot of times. My town is down to one movie theatre. They all had to close up because they didn't sell enough pop-corn, and they couldn't keep any of the money from the ticket sales. The one that is left only stays in business because there's no other theatre to go to.
Yet even with a monopoly over 50 miles they're losing money half the time, cause as ticket prices go up, that's less money people can spend on popcorn. They stay in business by raising their prices to like 4 dollars for a cola.
Using someone else's product to sell your own may be a good idea, but in the long run you may end up spending a hole bunch of money to front someone else's product for them. Once that money is gone you can't use it to improve on the product your actually interested in selling. The one that makes you money.
