From: "Rich Gauszka" 

 "All suggestions are made by the staff at Apple."

I didn't know that.

"Glenn Meadows"  wrote in message
news:4645f45a$1{at}w3.nls.net...
> Also, with that sales volume I would suspect and even lower credit
> processing fee, in the 2-3% range, possibly 1%.
>
> I think there are only 20-30 total people in the iTunes store staff as
> well.
>
> Also remember, they take NO advertising from labels for
"placement" in the
> store websites.  All suggestions are made by the staff at Apple.
>
> --
>
> Glenn M.
> "Rich Gauszka"  wrote in message
> news:4645dc2b$1{at}w3.nls.net...
>> Apple has stated that the iTunes store operates around break-even but
>> some analysts have questioned that
>>
>> http://www.appleinsider.com/articles/07/04/23/itunes_store_a_greater_cash_cr
op_than_apple_implies.html
>>
>> iTunes Store a greater cash crop than Apple implies?
>>
>> "For each $0.99 song, we estimate that Apple pays $0.70 to
major labels,
>> which own over 85 percent of the market, and $0.60 to $0.65 to
>> independent labels, which drives an average price per song of
>> approximately $0.69," he explained. On top of that, of course, are
>> Apple's network fees, transaction fees, and general administrative
>> expenses associated with operating the iTunes Store.
>>
>> Hargreaves calculated the network fees at $0.05 per song, which includes
>> the delivery fee, and the hardware and software to facilitate delivery.
>> "Operating expenses are likely less than $0.05 per song, based on the
>> relatively small number of employees we believe work on iTunes," he
>> wrote.
>>
>> Then, of course, there's the transaction fee -- or royalty paid to credit
>> card companies each time a sale is processed -- which Hargreaves argues
>> is "the primary reason iTunes profitability has not been higher
>> historically." However, he notes hat Apple has recently
adopted a number
>> of measures to limit those fees, such as managing a weekly sweep of its
>> credit card transactions, broadly distributing gift cards, and by
>> encouraging larger transactions through services such as
"Allowance."
>>
>> Therefore, the analyst believes the iPod maker is now forfeiting only
>> around $0.10 per song per song to credit card firms, compared to as much
>> as $0.25 per song when iTunes first launched. "Going forward, we expect
>> Apple to continue improving its payment schemes to cut down on
>> transaction fees and improve the profitability of iTunes," he added.
>>
>> Based on those cost estimates per song, Hargreaves arrived at the 10
>> percent margin estimate. Applying that estimate to the $1.2 billion in
>> revenue that iTunes is expected to generation in fiscal 2007, he believes
>> the service will generate $0.09 to $0.14 in earnings-per-share for Apple.
>>
>> "Glenn Meadows"  wrote in message
>> news:4645d59b$1{at}w3.nls.net...
>>> Part of what that label exec is comparing, is not
"Apples" to "Oranges".
>>>
>>> The micro payments form Real are for RENTAL/SUBSCRIPTION downloads, NOT
>>> sales.  We see the exact same, but in USD's.
>>>
>>> What the REAL situation is, is that virtually ALL of the other services
>>> sell NOTHING!!!!!!! They're wastes of time and resources, as they have
>>> NO MARKET SHARE!!!
>>>
>>> There are 2 services that are #1 and #2.  Apple, and eMusic.  Between
>>> the two of them they provide 92+% of all online revenues, period.
>>>
>>> The rental/subscription model may have a bunch of people, but as far as
>>> ANYONE making revenue from it, it's ONLY the services that are making
>>> the money.
>>>
>>> This is true for SONY, WEA, MCA, EMI.  They make virtually NOTHING from
>>> all of the other services that handle their content.
>>>
>>> eMusic is a non-factor for the big four, since at this point, they only
>>> have contracts with DRM based services.
>>>
>>> And as a proportion of all music shared (limewire, etc), the total sold
>>> number of tracks is probably only 10% of what's going on.
>>>
>>> --
>>>
>>> Glenn M.
>>> "Rich Gauszka" 
wrote in message
>>> news:46447de4{at}w3.nls.net...
>>>>
>>>> http://www.macworld.co.uk/news/index.cfm?RSS&newsID=17997
>>>>
>>>> Apple's iTunes service dominates online music retail, the latest
>>>> figures from aggregator Digital Music Group (DMG) confirm.
>>>>
>>>> The figures emerge as UK labels have begun articulating
their compaints
>>>> at the level of payment they receive from online music
services other
>>>> than iTunes.
>>>>
>>>> Speaking on condition of anonymity, one independent label
owner praised
>>>> iTunes because the service hands over the most of the 79-pence per
>>>> track sale price directly to the label - but is furious at
the kind of
>>>> revenue he's generating through other online services.
>>>>
>>>> The label head's comments don't consider the slice of income that's
>>>> handed across to music publishers, but he's pretty clear that iTunes
>>>> offers his acts the better deal.
>>>>
>>>> "For everything sold on iTunes, we get the majority
of the 70-79p per
>>>> unit sale price," he said, then added: "But for
everything sold on the
>>>> Ruckus Network we receive the princely sum of œ0.005 per
unit. That's
>>>> half a pence. My distributor then takes their 25 per cent
off of that,
>>>> leaving myself and the artists to dish up the remaining
fractions of a
>>>> penny between us."
>>>>
>>>> It's not much better through Real Networks, he informed - for sales
>>>> through that service, his label receives a penny per
track, he claimed.
>>>> The thousand tracks sold so far have accrued œ10 to the
label (to share
>>>> with the artists) rather than, "the œ790 or so we'd
have got for the
>>>> same amount of sales through iTunes."
>>>>
>>>> iTunes also drives business at international distributor of
>>>> independently-owned music and video catalogues, DMG.
>>>>
>>>>
>>>
>>>
>>
>>
>
>

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