this MUST be profitable.

Posted:
in iPod + iTunes + AppleTV edited January 2014
i know apple execs have said they break about even with slight profits on the ITMS. i doubt this.



think about it... 500,000,000 songs = roughly $500,000,000



operation costs are probably minimal (esspecially with free xserves). yes im aware that like apple only gets a few cents per song... i think its like 5-9cents? im not sure. in any event, even at a worst case of 5 cents... thats $250,000,000. Thats a chuck of change for a program that really only became a household name in Q1 of this year. at this rate if it isnt as profitable as i believe (probably making around 25-50,000,000 mil for the company, this year), it will be soon.

Comments

  • Reply 1 of 6
    ipodandimacipodandimac Posts: 3,273member
    Quote:

    Originally posted by mike12309

    even at a worst case of 5 cents... thats $250,000,000..



    .05*500,000,000= 25,000,000
  • Reply 2 of 6
    johnqjohnq Posts: 2,763member
    Quote:

    Originally posted by ipodandimac

    .05*500,000,000= 25,000,000





    They probably pay $25,000,000 for bandwidth, burned out drives and credit card fees...
  • Reply 3 of 6
    danmacmandanmacman Posts: 773member
    Its all about the iPods baby.
  • Reply 4 of 6
    progmacprogmac Posts: 1,850member
    whoa, got my windows confused. this is not a post
  • Reply 5 of 6
    banchobancho Posts: 1,517member
    Quote:

    Originally posted by mike12309

    i know apple execs have said they break about even with slight profits on the ITMS. i doubt this.



    think about it... 500,000,000 songs = roughly $500,000,000



    operation costs are probably minimal (esspecially with free xserves). yes im aware that like apple only gets a few cents per song... i think its like 5-9cents? im not sure. in any event, even at a worst case of 5 cents... thats $250,000,000. Thats a chuck of change for a program that really only became a household name in Q1 of this year. at this rate if it isnt as profitable as i believe (probably making around 25-50,000,000 mil for the company, this year), it will be soon.




    You're not Michael Bolton from Office Space, are you? He had trouble with decimal places too
  • Reply 6 of 6
    zozo Posts: 3,115member
    @ Bancho



    ROFLMAO!!!!



    I agree with the fact that the actual amount of money made is minimal, if any.



    Break-even philosophy all the way.



    Electricity, servers, maintenance, updating content, updating iTunes 'store', personnel for the negotiations of records, pr, marketing, janitor, insurance, taxes, bandwidth, bla bla bla...



    yeah... thats quite a lot of money
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