There is nothing that warrants a raise in prices for online music. They have no shipping costs, no packaging costs, no media costs that would warrant a price increase. iTunes pays for the hosting.
The music industry can't get enough apparently. Never satisfied. Yet they panic at every turn about pirating. Well if they force iTunes to shutdown they better be prepared for a REAL BIG PANIC ATTACK!!!! And those higher prices won't make any difference in how much money they will lose!!! |
I say more power to the bands and the people who MAKE the music. Not these draconian arse-hats that always wanna gouge for more and more money.
Indie!! |
Apple should really stick it to them. For once they've got a good thing going (music industry at large) and of course the music industry can't help but eat itself alive.
What the frick, a form self eating cancer? IDIOTS. I HOPE THEY ALL SUFFER MASSIVE BRAIN DAMAGE FROM SNIFFING CAR EXHAUST! |
If David Pakman, formerly head of eMusic is correct, Apple pays a minimum 25¢ credit card transaction fee. It is widely reported the recording industry takes 70¢ on each 99¢ download. That leaves 4¢ for Apple. If Apple is asked to absorb another 6¢ then Apple is being asked to lose 2¢ on each single song purchase and to try to make it up on the volume. Obviously the math is different on larger purchases than 99¢, but what sort of honest partner makes demands like that? |
I get weekly iTunes receipts from Apple regardless of many songs or when I by them. So, no, Apple doesn't pay a 0.25 per song or even download credit card fee. Urban myth, complete BS... |
The minimum credit card transaction fee is paid by the retailer, not the customer. It would not show up on your receipt any more than the credit card transaction fee shows up on any other credit card purchase you make. The minimum fee is applied to transactions where the usual rate of 2% would result in a fee of less than 25¢. On a single song transaction of 99¢, 2% of 99¢ is 1.98¢, so the minimum transaction fee of 25¢ is applied. This would in fact apply to all transactions of $12.50 or less. This is according to the former head of eMusic, David Pakman, responding to a New York Times article on the profitability of the iTunes music store, not urban myth or BS. As a result of Mr. Pakman's comments the original author revised his opinion of the ITMS's actual profitability.
While, as I stated in the last sentence of my previous comment, Apple enjoys a larger margin on larger purchases, the average iPod owner has downloaded ~22 songs over the life of the ITMS. That works out to less than 4 songs per iPod owner per year the store has been open. A reasonable observer could infer that many iPod owners have purchased a single song per transaction and made purchases at extended intervals.
Below is a link to the New York Times Blog. The update I mentioned is at the bottom of the main article and Mr. Pakman's is the second comment.
LINK |
So, Apple IS paying 0.25 per transaction and we're pretty clear that Apple's consolidating purchases into a single weekly billing / receipt.
You say six, I say a half dozen. We both get to Penn Station in time for a sandwich and a pint. Harrington's, OK? I buy this time... |
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Maliyah Posted by Maliyah on 12/17/08 10:41 PM |
Jayvon Posted by Jayvon on 12/18/08 9:04 AM |
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