Text 9419, 92 rader
Skriven 2006-01-28 13:17:58 av Mike '/m' (1:379/45)
   Kommentar till text 9412 av Rich Gauszka (1:379/45)
Ärende: Re: iPod business
=========================
From: Mike '/m' <mike@barkto.com>


Yup, Microsoft knows better than to try to compete in the music content arena;
another monopoly, the RIAA, already owns that space.

Better to compete in the hardware arena where Microsoft has a chance of
survival because they can leverage their desktop monopoly.

 /m


On Sat, 28 Jan 2006 10:58:26 -0500, "Rich Gauszka" <gauszka@hotmail.com> wrote:

>Last estimate I saw was a profit margin of $0.04 a song and 27 percent on
>the iPod. That would make the hardware end look quite attractive to MS
>
>http://www.redherring.com/Article.aspx?a=15505&hed=Google+May+Sing+iTunes%E2%8
0%99+Song&sector=Industries&subsector=EntertainmentAndMedia
>
>Besides, said Mr. Goodman, the online music business-especially
>pay-per-track downloads-is simply not very profitable. The average profit on
>a $0.99 download is $0.04, he said, whereas iPod margins are about 27
>percent.
>
>
>
>
>
>"Glenn Meadows" <gmeadow@comcast.net> wrote in message
>news:43db9005$1@w3.nls.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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