First of all, you'd base the purchase off of U2's average sales per release. Then factor in the most recent releases in popularity and you would probably get a purchase for full price sales of 1 million new discs.
Right. You'd pay them the revenue they "lost". Only a small percentage of people who get the album for free would have bought it. Apple would absorb the cut they would have taken, and doesn't have to pay the retail markup of a regular album.
You could make a argument that you could pay less because of the advertising involved, plus they're guaranteed the revenue, even if the songs suck.
500 million copies at 9.99 equals about 4,995,000,000 or $5 billion but let's say the sale price is $6 it would be $3 billion. It just might be somewhere around there, marketing via U2 that's a an expense write-off.
No....don't be insane...Apple didn't pay $5 billion.
You have to compare it to the number of single track and album downloads as well as physical sales that would have resulted if Apple didn't do the deal.
Just looking at the U.S., while many albums used to get certified Gold (500,000 units), Platinum (1 million units) or Diamond (10 million units) that's actually exceedingly rare today. In fact, it's been many years since an album has been certified Diamond. Let's say they would have sold 500,000 album equivalents: 250,000 physical units and 250,000 album equivalent downloads. That's under $2.5 million wholesale for the physical units and another $2.5 million for the downloads of which the label (not the band) gets $1.75 million. That's $4.25 million to the label. Ignoring any royalty advance to the band already paid, the band would typical get about 12% of that or under $500K. Most bands don't make money from recording anymore. They make money from touring and merchandise.
Considering that this is worldwide and also considering that Microsoft once paid the Rolling Stones $1 million for use of "Start Me Up" in a TV commercial, my guess is that Apple paid about $5 million. Maybe it's $10 million. But I'd be very surprised if it's more than that.
No....don't be insane...Apple didn't pay $5 billion.
You have to compare it to the number of single track and album downloads as well as physical sales that would have resulted if Apple didn't do the deal.
Just looking at the U.S., while many albums used to get certified Gold (500,000 units), Platinum (1 million units) or Diamond (10 million units) that's actually exceedingly rare today. In fact, it's been many years since an album has been certified Diamond. Let's say they would have sold 500,000 album equivalents: 250,000 physical units and 250,000 album equivalent downloads. That's under $2.5 million wholesale for the physical units and another $2.5 million for the downloads of which the label (not the band) gets $1.75 million. That's $4.25 million to the label. Ignoring any royalty advance to the band already paid, the band would typical get about 12% of that or under $500K. Most bands don't make money from recording anymore. They make money from touring and merchandise.
Considering that this is worldwide and also considering that Microsoft once paid the Rolling Stones $1 million for use of "Start Me Up" in a TV commercial, my guess is that Apple paid about $5 million. Maybe it's $10 million. But I'd be very surprised if it's more than that.
I think $10 million is probably a pretty good bet. Plus, this is ultimately "free" advertising for their next tour. I'll bet Jimmy Iovine was involved in this deal also. Let's see if Apple sponsors their tour or sells tickets through iTunes.
The way it would be calculated would not be on how many iTunes subscribers download the Album, but rather how many albums would U2 have sold in the traditional sales channel model. So they would take the last 2 or 3 U2 albums and calculate the average sales for an album. That would be how much Apple paid. No Line on the Horizon - just over 5 million sold. How To dismantle An Atomic Bomb - just over 9 million sold. Average of 7 million. Album would sell on iTunes for $9.99. The record company takes a chunk (we don't know how much U2 owes the record company based on their contract and advances received). But say Island takes $6. The artists take the rest. Then take out Management costs, taxes, other expenses, etc. Divide that by 4. On iTunes, the numbers stay the same, but Apple has a share as well, which lessens the artist's share. Say $1.99 (average is around $2.99). That's less than $2 for U2 (Then take out Management costs, taxes, other expenses, etc. Divide that by 4). So Apple could have paid as little as between $7 per album, or $49 million tops. Remember, artists now make their money with tours and merchandise. Album sales are more a marketing tool to push the tour, rather than a revenue stream.
I'm also an Apple stockholder, and feeling the money might have been spent more wisely.
One of the conditions for getting the free album was signing up to iTunes before October 13th. They already have 500m users but say they sign up 50m more users and monetize them by $1 each, that could cover what they paid to U2. As people said, even their best album sales are no more than 25m copies and they won't need to cover anywhere near that. Most likely the sum wasn't above $100m. Like Tim said, he's a good negotiator. He's not good at improvised stage shows though - the part where him and Bono touched fingers on stage to represent making the album available was lame as well as the awkward, strained conversation. The rest of the band members just looked embarrassed to be there.
Having just watched the HD Podcast, thanks to the Live Streaming fail, I thought U2 were distinctly average. Bono would never agree to this unless a lot of loot changed hands, I hope Apple get their money's worth.
Does The Edge really think nobody knows he's a baldy? It's time he came out that closet wearing a rug or transplant, or preferably au naturel.
There is no story here! Apple paid U2 an UNDISCLOSED amount. That means it could be zero or a zillion dollars. A similar statement could be said of ANY artist. AI essentially wrote "We know nothing, and here's 200 words about it."
Not sure about you all when I click on the album in the itunes store to down load it say buy not free. I down loaded free content from Itunes before is it usually says free on the download button, grant it I can listen to the entire songs, but I am not sure it really free to down load, and own. I think Apple paid to freely stream it its customers for a month before it is available to any other retailer.
If you can actually download it free how is it done.
They should have spent the money on their live streaming. Oh god, what clusterf*ck that was.but hey the Japanese dub was better than nothing.
Seriously! #1 tech company in the world and you can't figure out live steaming? I would however love to know how many people watched? I'm thinking thye could do this during prime time and beat everything except perhaps the Super Bowl.
How do I actually download the songs from this album? I can only play the tracks as a stream. Everything I read says to click on the little iCloud icons to download. Where are those? I've downloaded and gifted plenty of songs on my iPhone and through iTunes. This is not working as expected.
If the additional tracks on the physically released albums are not just gimmick out-takes, then we didn't get an album but an album-preview. I know, gift horse, etc. but it also pisses me off if chapters out of books, or single volumes of a contiguous series are listed as "free books" in the iTunes Store. These are previews, sample excerpts, etc. but not free books; and the same would apply here. So then the extra tracks would be album-only, and if you're into U2 you have to buy the album again, and if not, you don't bother with the free album either. So chances are people will have gotten nothing for free in the end. (iTunes doesn't even download the digital booklet, just the songs...
Not sure about you all when I click on the album in the itunes store to down load it say buy not free. I down loaded free content from Itunes before is it usually says free on the download button, grant it I can listen to the entire songs, but I am not sure it really free to down load, and own. I think Apple paid to freely stream it its customers for a month before it is available to any other retailer.
If you can actually download it free how is it done.
It's not really free content like a podcast or free app. It has a cost but every iTunes account was gifted the songs from this album. So that might explain why it looks different to you. My question is how the hell do I just download the songs? I follow the simple instructions on the iTunes page and nothing is as it is described.
Comments
First of all, you'd base the purchase off of U2's average sales per release. Then factor in the most recent releases in popularity and you would probably get a purchase for full price sales of 1 million new discs.
Right. You'd pay them the revenue they "lost". Only a small percentage of people who get the album for free would have bought it. Apple would absorb the cut they would have taken, and doesn't have to pay the retail markup of a regular album.
You could make a argument that you could pay less because of the advertising involved, plus they're guaranteed the revenue, even if the songs suck.
They should have spent the money on their live streaming. Oh god, what clusterf*ck that was.but hey the Japanese dub was better than nothing.
It was clearly Chinese, not Japanese.
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Almost all the way through the new album and it's very good. Some of their strongest work in a long time.
500 million copies at 9.99 equals about 4,995,000,000 or $5 billion but let's say the sale price is $6 it would be $3 billion. It just might be somewhere around there, marketing via U2 that's a an expense write-off.
No....don't be insane...Apple didn't pay $5 billion.
You have to compare it to the number of single track and album downloads as well as physical sales that would have resulted if Apple didn't do the deal.
Just looking at the U.S., while many albums used to get certified Gold (500,000 units), Platinum (1 million units) or Diamond (10 million units) that's actually exceedingly rare today. In fact, it's been many years since an album has been certified Diamond. Let's say they would have sold 500,000 album equivalents: 250,000 physical units and 250,000 album equivalent downloads. That's under $2.5 million wholesale for the physical units and another $2.5 million for the downloads of which the label (not the band) gets $1.75 million. That's $4.25 million to the label. Ignoring any royalty advance to the band already paid, the band would typical get about 12% of that or under $500K. Most bands don't make money from recording anymore. They make money from touring and merchandise.
Considering that this is worldwide and also considering that Microsoft once paid the Rolling Stones $1 million for use of "Start Me Up" in a TV commercial, my guess is that Apple paid about $5 million. Maybe it's $10 million. But I'd be very surprised if it's more than that.
I'd rather have a free Duran Duran album.
I wouldn't. They haven't been good since the mid-80s.
Their last album had some good songs.
I think $10 million is probably a pretty good bet. Plus, this is ultimately "free" advertising for their next tour. I'll bet Jimmy Iovine was involved in this deal also. Let's see if Apple sponsors their tour or sells tickets through iTunes.
The way it would be calculated would not be on how many iTunes subscribers download the Album, but rather how many albums would U2 have sold in the traditional sales channel model. So they would take the last 2 or 3 U2 albums and calculate the average sales for an album. That would be how much Apple paid. No Line on the Horizon - just over 5 million sold. How To dismantle An Atomic Bomb - just over 9 million sold. Average of 7 million. Album would sell on iTunes for $9.99. The record company takes a chunk (we don't know how much U2 owes the record company based on their contract and advances received). But say Island takes $6. The artists take the rest. Then take out Management costs, taxes, other expenses, etc. Divide that by 4. On iTunes, the numbers stay the same, but Apple has a share as well, which lessens the artist's share. Say $1.99 (average is around $2.99). That's less than $2 for U2 (Then take out Management costs, taxes, other expenses, etc. Divide that by 4). So Apple could have paid as little as between $7 per album, or $49 million tops. Remember, artists now make their money with tours and merchandise. Album sales are more a marketing tool to push the tour, rather than a revenue stream.
One of the conditions for getting the free album was signing up to iTunes before October 13th. They already have 500m users but say they sign up 50m more users and monetize them by $1 each, that could cover what they paid to U2. As people said, even their best album sales are no more than 25m copies and they won't need to cover anywhere near that. Most likely the sum wasn't above $100m. Like Tim said, he's a good negotiator. He's not good at improvised stage shows though - the part where him and Bono touched fingers on stage to represent making the album available was lame as well as the awkward, strained conversation. The rest of the band members just looked embarrassed to be there.
Having just watched the HD Podcast, thanks to the Live Streaming fail, I thought U2 were distinctly average. Bono would never agree to this unless a lot of loot changed hands, I hope Apple get their money's worth.
Does The Edge really think nobody knows he's a baldy? It's time he came out that closet wearing a rug or transplant, or preferably au naturel.
U2 has come a long way:
Direct link:
There is no story here! Apple paid U2 an UNDISCLOSED amount. That means it could be zero or a zillion dollars. A similar statement could be said of ANY artist. AI essentially wrote "We know nothing, and here's 200 words about it."
Not sure about you all when I click on the album in the itunes store to down load it say buy not free. I down loaded free content from Itunes before is it usually says free on the download button, grant it I can listen to the entire songs, but I am not sure it really free to down load, and own. I think Apple paid to freely stream it its customers for a month before it is available to any other retailer.
If you can actually download it free how is it done.
Seriously! #1 tech company in the world and you can't figure out live steaming? I would however love to know how many people watched? I'm thinking thye could do this during prime time and beat everything except perhaps the Super Bowl.
Wonder what this act of generosity is all about... Compensation for ugly iPhone 6 and iWatch designs?
? I for 1, (plus 100's of millions of others) think the phone and watch are awesome, and you can BET, this will sell in the 10's of MILLIONS!
Skip
Dumb question:
How do I actually download the songs from this album? I can only play the tracks as a stream. Everything I read says to click on the little iCloud icons to download. Where are those? I've downloaded and gifted plenty of songs on my iPhone and through iTunes. This is not working as expected.
I know, gift horse, etc. but it also pisses me off if chapters out of books, or single volumes of a contiguous series are listed as "free books" in the iTunes Store. These are previews, sample excerpts, etc. but not free books; and the same would apply here.
So then the extra tracks would be album-only, and if you're into U2 you have to buy the album again, and if not, you don't bother with the free album either.
So chances are people will have gotten nothing for free in the end. (iTunes doesn't even download the digital booklet, just the songs...
Not sure about you all when I click on the album in the itunes store to down load it say buy not free. I down loaded free content from Itunes before is it usually says free on the download button, grant it I can listen to the entire songs, but I am not sure it really free to down load, and own. I think Apple paid to freely stream it its customers for a month before it is available to any other retailer.
If you can actually download it free how is it done.
It's not really free content like a podcast or free app. It has a cost but every iTunes account was gifted the songs from this album. So that might explain why it looks different to you. My question is how the hell do I just download the songs? I follow the simple instructions on the iTunes page and nothing is as it is described.