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43 Comments
- iconoclast, on 10/12/2007, -0/+1To whoever said artists make 2 cents a song...
We're currently on iTunes and are making 70 cents a song. Even after our new label gets involved we'll still be making about 50 percent of that.
Artists are only victims when they aren't business savvy. - shiftt, on 10/12/2007, -0/+0that's a very rough estimate. A few weeks back they had a different number, saying that Apple actually makes $0.64 from every show
anyway, anthonyb415 we had a rough ride thsi week with AAPL. its down quite a lot over the last few days, far from its $86 52 week high - gbm85, on 10/12/2007, -0/+0"Apple doesn't really get 55 cents, they have to cover the bandwidth cost first."
Not to mention the merchant fee for taking micropayments. - super_structure, on 10/12/2007, -0/+0Molnies: I've never understood why Apple (or, more likely, the content owners) doesn't allow anyone to download anything, regardless of geographic location. I'm sure the cost would still vary, but why shouldn't I be able to buy a Canadian, British, or Swedish (you guys do still have music, right?) song here in the states. It really makes no sense. I've spent a fair amount of money at Amazon.ca/.co.uk/.fr just to find the stuff I'm interested. Lost sale for iTMS, in my opinion.
- super_structure, on 10/12/2007, -0/+0No word on how that $1.44 is divided up, though, huh? I'm curious how much goes where. I know that artists only make about 2 cents off of a music download via iTMS. I'm curious how all that pie gets divided up on a video download.
- bludevil887, on 10/12/2007, -0/+0Dont you think they could spare to drop the price then, I dont buy much iTunes stuff, but I would if shows were $1
- super_structure, on 10/12/2007, -0/+0dongiaconia: You'd still need a credit card with a US address to purchase anything from the US store, I think.
- hasbeen, on 10/12/2007, -0/+055 cents in revenue, obviously.
- ndm007, on 10/12/2007, -0/+0I never thought of that. Apple are making little money from the iTMS after all the costs. However, we can not pity them, as 42 million iPods should bring home the bacon :)
- KillerX, on 10/12/2007, -0/+0super_structure,
It's the content owners and their red tape that result in the lack of content in other countries, if it were up to Apple they would sell as much content as they could to the world.
Let the content providers know! - super_structure, on 10/12/2007, -0/+0I'll have to pass that all along to my brother (The Coal Men). Unfortunately, after distributors and publishers get their cut, there's not a whole lot left for him. I'm glad to hear that you guys are making some good change off of each song. You shouldn't be shy about telling us the name of the band/artist, either. I wouldn't mind knowing, anyway.
KillerX: That's why I said "Apple (or, more likely, the content owners)." It only seams in Apple's best interest to open the market up (i.e. - Long Tail and all that). - xeeton, on 10/12/2007, -0/+0Apple keeps 30-45 cents per song. $3.50 per album. My distributor gets 9%, so I get between 50-60 cents per download. For real.
- rhettnyedotorg, on 10/12/2007, -0/+0@ anthonyb415
sorry man i think you got it wrong.
Apple is not in the content business, the TV networks are. A basic principle of business is to stick with what you do best. Apple is in the computer business, including hardware, software and now, "e-commerce."
That ~25-30% cut is quite generous and that's the kind of cheese you can make when you're, "First to market."
25% of a dollar ninety nine isn't much but it is when it costs you nothing, and it's duplicated a few hundred thousand times, you get very rich, very fast.
Oh, one more thing: the cost of your product has nothing to do with the price at which you sell it. you sell it for, "What the market will bear" and if that's more than you pay to get the product to market, congratulations you have a feasible business. If anyone thinks that is price gouging or profiteering, look it up on wikipedia and recognize. - inactive, on 10/12/2007, -0/+0Apple doesn't really get 55 cents, they have to cover the bandwidth cost first.
- macslut, on 10/12/2007, -0/+0Iconoclast,
Any chance you could give a shameless plug? I've been wondering about indies and unsigned on iTMS. What's your band? What songs? How do you sign up independent with iTMS? - spelchek, on 10/12/2007, -0/+0once again the artists get no money from itunes.
- Qenton, on 10/12/2007, -0/+0Hmmm, I wonder what advertising revenue per view works out to be, if it is less than $1.55. Basically you are paying to not watch the commercials.
- Qenton, on 10/12/2007, -0/+0"estimated 57 cents in advertising revenue per user generated under the current model."
Might help if I just read the article for a change. - dongiaconia, on 10/12/2007, -0/+0Can't you use a proxy to connect to iTunes and spoof a USA IP address if you are outside the US?
- sheep555, on 10/12/2007, -0/+0" I've never understood why Apple (or, more likely, the content owners) doesn't allow anyone to download anything, regardless of geographic location."
It's a copyright thing. Quite often, content providers get paid different fees and rates if something is sold outside the country it has been produced in. It's a totally difference system for TV, but the principle is the same. - cptshamrock, on 10/12/2007, -0/+0Apple makes money on their hardware not itunes
- ketsugi, on 10/12/2007, -0/+0Right after Kevin estimated about a dollar going to the networks on Diggnation, this comes out? Heh.
- logofpi, on 10/12/2007, -0/+0This distribution idea is rock solid. Everyone wins because Apple is efficient and not interested in taking from artists. On top of this the interface is sweet.
- mtied, on 10/12/2007, -0/+0wrong comment, digg me down.
- stickyboot, on 10/12/2007, -0/+0Wow, just.... Wow.
- cpawl, on 10/12/2007, -0/+0I still don't care. Until iTunes has songs for a nickel a track, I'm not interested.
posted by Seumas (1) at 06:15 PM 1/26/06
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Considering the fact that a bottle of water or coffee or pack of freakin gum cost more than an itunes song... I am willing to pay .99$ for a song thatI enjoy and can have the rest of my days. - inactive, on 10/12/2007, -0/+0at first youll see this because apple want to make it really worth while for the networks, then the tables will turn once they have the power and the monopoly...
- smook, on 10/12/2007, -0/+0Can someone download tv shows for me in the States and then upload them to me in Canada? Wondering if this works? Or is there DRM all over this stuff? Canada wants the TV SHOWS too!!
- alexgreggs, on 10/12/2007, -0/+0I own a music download site and there are also payment transaction fees, apple keep them to a minimum by billing you a couple of days after the purchase in hope you made a few more so they can bundle it into one payment transaction, bandwidth and not to mention how much it cost to run iTunes, staff etc. Like said earlier apple only cares about iPod sales and the iTMS and its content are the draw for iPod sales. Lots of people have tried to head off with iTunes and wonder why they loose, thats because they are trying to make money off song sales...My site is for indie bands that dont want DRM on their songs therefore our stuff works on iPods and I dont expect to make $$ of song sales but off the advertising and tours. As for the nickel a track thats the labels wanting $$. I guess I went off topic but oh well
Alex - inactive, on 10/12/2007, -0/+0wow, apple makes almost nothing after bandwidth and maintenance. Interesting.
- diggnationdevon, on 10/12/2007, -0/+0I love the tv show section. I just downloaded the entire season of jackass. lol
- zabeans, on 10/12/2007, -0/+0Our band is also on iTunes. For those that are interested, we do it through www.cdbaby.com CD Baby is a great resource for independent artists of any genre for many reasons, but the best is digital distribution. They'll get you into iTunes, Rhapsody, and all of the other big (and small) legal download sites. Apple won't take on artists individually, so you must go through a label, or someone like CD Baby. They take 9% out of the cut you get from Apple and the others.
http://cdbaby.net/dd?f=4 is a listing of how much you get paid for every company they distribute to. Best of all, this method costs us nothing, so is cheaper than selling a physical CD. We don't do any work, and get paid any time someone buys our song or the album. (and on other itunes-like sites, we even get $$ if someone streams it!) - tryferos, on 10/12/2007, -0/+0Hey Apple has it right and they are working with the networks to embrace the technology and give the people what they want.
Just please all you "if it was only cheaper" complainers...stop already, if you dont like it go watch it live on tv. There is alot behind the scene stuff involved here and you gotta pay the piper, ya poor ass cheapskates! - MikhoohkiM, on 10/12/2007, -0/+0what about when people stop buying ipods? when everyone already has the ipod they want and doesn't buy the next one? or is that just one of the things that will never happen?
- inactive, on 10/12/2007, -0/+0¨what about when people stop buying ipods? when everyone already has the ipod they want and doesn't buy the next one? or is that just one of the things that will never happen?¨
Exactly. If all their revenues come from selling hardware I wonder how long before they hit a cap. Then again I guess Apple will keep ¨inventing¨ new features like FM and whatnot and selling a ¨new, improve¨ Ipod every 2 or 4 months. - chesterton, on 10/12/2007, -0/+0Now if they would only sell them in Canada!
- NekoFever, on 10/12/2007, -0/+0That's not too bad considering that by selling on iTunes they're devaluing the commercial time that companies pay millions for by making it available the same day for $1.99. Top TV shows cost millions per episode and all Apple has to do is host them and make a killing on iPods.
- kolop1, on 10/12/2007, -1/+0 What? A large company makeing money? Not news.
- Molnies, on 10/12/2007, -1/+0You lucky guys that live in US and other countries that even have TV shows on iTunes. Here in Sweden we don't have many, and when we get them I assume that the price will be quite high, since a song is $1.3 instead of $0.9 as you have it
- OsakaWilson, on 10/12/2007, -1/+0When iTunes allows people who live abroad (who have NO access to the TV shows) to buy TV shows they will receive a large amount of my money. But I guess they don't want our money 'cause they choose to try to sell the shows to people who can watch them for free. Stoopid Apple.
- inactive, on 10/12/2007, -1/+0I still don't care. Until iTunes has songs for a nickel a track, I'm not interested.
- jk_baller23, on 10/12/2007, -2/+0I think what Apple is doing is good for TV networks since many people that watch the show download it.
- anthonyb415, on 10/12/2007, -2/+0The concept for Apple is; Provide the content (without making much money) so that we (apple) can sell the hardware (where the money is really made)
+Digg...proud AAPL owner
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