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Text 9409, 59 rader
Skriven 2006-01-28 09:41:32 av Glenn Meadows (1:379/45)
   Kommentar till text 9407 av John Oellrich (1:379/45)
Ärende: Re: iPod business
=========================
From: "Glenn Meadows" <gmeadow@comcast.net>

John,

I've got to side with Rich on this.  Apple does NOT make any appreciable profit
on the store.  2/3 of the revenue from the sale of a track goes to the label
who owns the copyright (actually it's going up another few percent shortly). 
Then from that, Apple has to pay the full staff that runs the store, does all
the previewing of the music, etc. Plus, they pay the (Apple pays) the CC
processing fees from their portion, as wall as all the bandwidth costs,
customer support calls,etc.  And, for most of the majors, they do all the
encoding and processing of the new material (at least they did for the first
year to get it going).

Within the industry, it's fairly well known, that Apple makes virtually nothing
on the sale of the music, it's the drive of the content to sell iPods.  I
believe that a recent news story I read said that they're making as much, or
more on iPod sales, than they are on computer hardware sales.

The iPod profit is a very large margin all the way through the retail chain is
suspect.

--

Glenn M.
"John Oellrich" <john@oellrich.us> wrote in message
news:43db849c$1@w3.nls.net...
Rich,

Nope it is the other way around. Well they do probably make a profit on the
iPod, but it has no where near the margin of iTunes.

--
john

john@oellrich.us
  "Rich" <@> wrote in message news:43db18e3$1@w3.nls.net...
     Doesn't apple make money on the ipod hardware and little to none on the
itunes store?

  Rich

    "John Oellrich" <john@oellrich.us> wrote in message
news:43da8441@w3.nls.net...
    Talk about stupid! Yet another money losing piece of hardware where they
will try to make it up in the volume ;->

    ...

    I would suggest that MS might be better off working with Creative if
they want to blunt Apple's dominance in this arena. Get Windows Media 10 ported
to the device, and then MS could use MSN for the delivery vehicle for the
purchased media which is where the real money is.

    --
    john

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