Starving apple as you put it would be illegal. It's called price fixing. There was no risk of apple losing the labels. On the flip side, imagine losing nearly 5% of your turnover. Not a good move at all, especially when that turnover is nearly pure profit (minus marketing cost allocation of course).
That's not what I'm talking about. It isn't price fixing anymore that it is when Apple demands that they pay the labels the same amount. Or when other sites join the 99 cent battle, and demand the same deal from the labels.
If the contract runs out, they have every right to withdraw their content.
That 5% is by no means almost pure profit. I don't know where people like you get these ideas from. Most of what Apple pays the labels is for royalty payments. Thoser payments are fixed by national and international agreements. The labels can't change them by default.
I wholeheartly agree here. Finally, someone that has a spine, and some who thinks about his costumers (and his profit, of course).
Way to go, Steve.
Of course, the question is not whether Steve cares about his customers. A business always does what is best for itself.
The difficulty is in understanding what IS best for itself. Some people understand that better than others. Right now, Apple seems to understand that best. It certainly isn't always true at Apple though.
Comments
Originally posted by Tag Me Back
Starving apple as you put it would be illegal. It's called price fixing. There was no risk of apple losing the labels. On the flip side, imagine losing nearly 5% of your turnover. Not a good move at all, especially when that turnover is nearly pure profit (minus marketing cost allocation of course).
That's not what I'm talking about. It isn't price fixing anymore that it is when Apple demands that they pay the labels the same amount. Or when other sites join the 99 cent battle, and demand the same deal from the labels.
If the contract runs out, they have every right to withdraw their content.
That 5% is by no means almost pure profit. I don't know where people like you get these ideas from. Most of what Apple pays the labels is for royalty payments. Thoser payments are fixed by national and international agreements. The labels can't change them by default.
Originally posted by Denmaru
I wholeheartly agree here. Finally, someone that has a spine, and some who thinks about his costumers (and his profit, of course).
Way to go, Steve.
Of course, the question is not whether Steve cares about his customers. A business always does what is best for itself.
The difficulty is in understanding what IS best for itself. Some people understand that better than others. Right now, Apple seems to understand that best. It certainly isn't always true at Apple though.