Does Apple Make Money on the Music Store?
Apple® today announced that over two million songs have been purchased and downloaded from its revolutionary iTunes® Music Store since its debut 16 days ago. Continuing the trend set during the first week, over half of the songs purchased to date were purchased as albums, further dispelling concerns that selling music on a per-track basis will destroy album sales
So how much $ does Apple actually MAKE off each song though? I doubt it's much money at all really...
So how much $ does Apple actually MAKE off each song though? I doubt it's much money at all really...
Comments
And remember that Apple already made a healthy investment in Akamai back in 1999; so, those bandwidth costs probably aren't as high as they could be.
Originally posted by Brad
And remember that Apple already made a healthy investment in Akamai back in 1999; so, those bandwidth costs probably aren't as high as they could be. [/B]
of course, if they had just sold their Akamai stock just before the bubble burst, they could probably BUY Microsoft right now....
This has been done to death. It's ~34¢ a song before bandwidth costs.
And the other costs you forgot to mention including credit card processing (standard is 2% per transaction, though Apple is probably paying less), advertising (they'll have to do it sometime after the novelty wears off), software and hardware development (somewhere to bury those Windows iTunes and iPod development costs) and tech support (for those angry why the f%^S won't my songs download calls).
Apple is not loosing money by any means, but its not a clean $0.34 before bandwidth.
Originally posted by cowerd
Apple is not loosing money by any means, but its not a clean $0.34 before bandwidth.
It's a clean 34¢ before bandwidth/investment/r&d et cetera. But doesn't the advertising come from their advertising budget, and the software development from their software division, and the hardware... you're talking about Apple Computer, Inc., I'm talking about the iTMS.