WTF apple!!

[frash.exe]

$1.29 a piece for songs now?

at this rate, by 2020 we'll have to be harvesting organs to sell so we can afford an album on this poo.

[Panthro]

What!?!?

Cranks up Limewire

[TerriblePizza]

Not all are 1.29, only ones Apple let the Music industry choose. So, all the popular songs at a given time will be expensive.

And people wonder how Apple posted record profits last quarter.

[Tweeder]

slacker.com or pandora.com is fine by me......I get both on my blackberry

[Delhommey]

Apple doesn't make a cent on iTunes songs, at least not when I was there.

[ItsNotGonnaBeAlright]

Apple doesn't make a cent on iTunes songs, at least not when I was there.

Apple used to make around $.01-$.03 a download. with the increase in pricing, they now make about $.15 a download.

[Delhommey]

Apple used to make around $.01-$.03 a download. with the increase in pricing, they now make about $.15 a download.

Based on?...

[ItsNotGonnaBeAlright]

I tried to search out the articles but with everyone loosing their minds over the price increase, searching the term "Apples share of Itunes price" is pretty much a futile gesture.

And I actually think it wasn't until they did the promo with Coke that they started making any money off of it at all. Before then it all went to the production companies. Don't quote me there.

Still, even if it's $.20 out of $1.29, theres still a dollar nine going to the production companies. There's your highway robbery. Apple's entitled to make a few cents off their monster if they want, but with the overhead on production of a single MP3 being about half a cent with little to no post-release cost for the record labels...Apple isn't the one anybody should be mad at.

[Delhommey]

OK. Gross profit I can see, but they don't make any money net.

I'd just about guarantee they lose money in the end.

Don't worry though. They're making it back elsewhere.

[ItsNotGonnaBeAlright]

Oh God yeah. The money they make from the downloads is probably break-even at best. Their money is in hardware and always will be.

[carpanfan96]

as of 2007 the Itunes store was operating at a 10 percent profit margin (this is just the store.) Before the increase it was up to 11 percent. Have to wait and see what it is after this increase.

Based on per-song cost estimates, the ubiquitous iTunes service generates an operating profit of at least 10 percent, and possibly as much as 15 percent, according to PacificCrest's Andy Hargreaves. The analyst on Monday released a detailed report on the subject, in which he informed Apple investors that the economics of iTunes could soon serve as a boon for the company's bottom line.

Link

[the butch]

I thought the whole transition to the 254 whatever format was the excuse for the higher prices on some songs. Companies usually introduce newer, "higher" quality of the same stuff as a way of upping the price. Take New Era for example...I remember when their fitted hats used to be $21.