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TIME: iTunes Music Store one of \'Coolest Inventions\'

updated 11:10 pm EST, Sun November 9, 2003

iTMS: \'Coolest invention\'

Apple's : "Jobs has one more reason not to be concerned about the competition. 'The dirty little secret of all this is there's no way to make money on these stores," he says. For every 99 Apple gets from your credit card, 65 goes straight to the music label. Another quarter or so gets eaten up by distribution costs. At most, Jobs is left with a dime per track, so even $500 million in annual sales would add up to a paltry $50 million profit. Why even bother? 'Because we're selling iPods.' ..That may make iTunes the most benign-looking Trojan Horse in software history."




by MacNN Staff

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  1. MacNN.com Reader

    Joined: Dec 1969

    0

    RIAA scum

    even in digital distribution, where the recording companies no longer have their own built in distribution costs, they still find a way to take the lion's share of money. does it really cost that much to make a song?

    at least apple has a business model that works and makes sense. i wonder if other services have comparable RIAA fees or if they make due with lower profits.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    Actually

    It's not one of Time's Coolest Inventions of 2003, it's THE coolest invention of 2003:

    "But for finally finding a middle ground between the foot-dragging record labels and the free-for-all digital pirates and for creating a bandwagon onto which its competitors immediately jumped, Apple's iTunes Music Store is Time's Coolest Invention of 2003."

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    re: RIAA scum

    "does it really cost that much to make a song?"

    Actually, yeah. I know people always look at this issue as 'the old white male CEO vs the Artist', but record companies employ thousands of normal people who are trying to earn a living just like you. Not to start a car anology, but think about number of people between the car salesman/woman and the company CEO. You've got product designers, accountants, laborers, truck drivers, customer service reps... on and on. While the jobs may be slightly different, a record company employs just as many average people.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    I see what you're saying

    The RIAA is just a big make-work project. We don't need their services, but we tolerate them because they employ lots of people.

    That's a fucked point of view, dude.

    In fact, it is not only the 'old white male CEO vs the Artist', but vs. the consumer too. And the reality is that I will never pay more for something just to give someone a job. I pay for something if there is VALUE.

    And speaking of jobs, do you think that the blue-collar masses employed by these old white male CEO's are well paid? You know that the old white male gets 45 of those 65 cents. That don't leave s*** for Joe Blow and his family.

    So next time think before you type, dickhead.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    well, duh

    Its always been common knowledge that the iTunes store's main purpose was to promote iPod Sales. Its exactly the opposite of the "give away the razor, sell the blades" strategy of the video game world. This is why Sony's ~$60 ipod killler will fail. If they sell it at a loss, they HAVE to make money on the software, ie the music, for it. Which means it will have super DRM ensuring that you won't be able to play downloaded music or probably even cd-ripped music on it.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    iPods and Quicktime

    Don't forget that each copy of iTunes also comes with Quicktime. This makes it a even bigger Trojan horse.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    Invention?

    Yeah. Apple invented GUI, too.

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