On Fri, 7 Nov 2003, William T Goodall wrote:
>
> On 6 Nov 2003, at 2:55 am, Kevin Tarr wrote:
>
> > *Someone had a fine critique of iTunes, how apple gets 1/3 of the
> > money for only being a trafficker of the songs,
>
> Stores typically have a markup of 30% or more on CDs.
How much of the store's take goes into overhead? How much of Apple's take
goes into overhead?
> > the record companies get the rest and only pay a small percentage to
> > the artists, if that.
>
> Apple actually makes a loss running the iTunes store. It makes sense
> because it promotes sales of the profitable iPod player, and
> strengthens the brand.
Tells me the overhead is significant in relation to the cost of the songs.
Thanks. :)
> eTunes and Napster would appear to have a problem with their business
> plan :)
:)
Julia
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