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-----Original Message-----
From: Jim Campbell [mailto:[EMAIL PROTECTED]
Sent: Friday, November 07, 2003 10:02 AM
To: CF-Community
Subject: Re: iTunes - What does that .99 cents pay for?
That's not surprising at all. Look at it this way... Apple has a
gigantic account with Akamai for bandwidth - not only for their site,
but also for the sprawling .Mac service and their Quicktime movie
previews section, which sees a lot of traffic every month. I'd say
Apple moves terabits per month already, and it stands to reason that
multiplying that throughput by half again or even 2 wouldn't cost *that*
much more from Akamai.
Anyway, it's also a reasonable loss leader. iTunes is the gateway to
iPods - same way the Xbox is sold at a loss (about $100 at this point)
since MS is banking on people buying a number of games, which will put
the total amount revenue per consumer into the black... in theory :)
The only thing that bugs me about this is that the RIAA gets (almost
all) the money directly. I assume this is paid to the artists via the
terms of their existing bloodsucking contracts, which means the same
system is in place, but with a different veneer. In some ways, it's
pessimistic, but if the RIAA sees alternate distribution methods in
place and showing a healthy revenue, they might pull their heads out of
their asses...
Also, I hope Apple works more closely with individual artists and labels
that shun the RIAA and let them participate on an equal footing. We
were talking about punk a couple of weeks ago... I'd love to be able to
access, say, Dischord's catalog via iTunes - buy songs from there,
expect Apple to take a small cut for the transaction and have the label
recieve the bulk of the revenue.
- Jim
Haggerty, Mike wrote:
>http://www.theregister.co.uk/content/6/33850.html
>
>Good article on the Register.
>
>M
>
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