Confidential Apple music details leaked
Posted by configure on 07 June 2003 - 23:40 · 22 comments & 3035 views
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(9 replies)
#1 Posted by dmd3x on 08 Jun 2003 - 00:19
- Seems like they are making a decent profit off of this...
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#1.1 Posted by Arkos Reed on 08 Jun 2003 - 00:23
- and that's with 5% of the world's computer users as potential customers (mac.. bleh
)...... guess how it'll turn out when they roll out a windows version (in the works).... 
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#1.2 Posted by macrosslover on 08 Jun 2003 - 00:35
- where did it say they are making money?? so far they have sold 3.5 million songs right?? which is "just" 3.5 million dollars right?? no telling how much of that goes back into expenses and how much is actually a profit.
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#1.3 Posted by Homie on 08 Jun 2003 - 00:58
- id say, 25 cents goes to servers and such, 50 cents to record companies (1 cent to bands, 49 cents to the company), and 25 cents profit
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#1.5 Posted by timdorr on 08 Jun 2003 - 04:36
- The companies get 65 cents and Apple gets 35 cents.
At 500k tracks / week * .35 cents = $175,000/week
$175K * 365 days = $63,875,000 / year for Apple in revenue
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#1.6 Posted by Gumboot on 08 Jun 2003 - 06:13
QUOTE At 500k tracks / week * .35 cents = $175,000/week
$175K * 365 days = $63,875,000 / year for Apple in revenue
Err, your maths is a little rusty...
$175K * 52 weeks = $9,100,000 / year for Apple in revenue-
#1.7 Posted by macrosslover on 08 Jun 2003 - 06:19
- lol i just notice that mistake he had with the week. now that puts it in perspective. 9 million ain't really NOTHING. they DEFINATELY need the Windows audience if they want to make some real money.
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#1.8 Posted by XarumanX on 08 Jun 2003 - 09:22
- Homie: 25 + 50 + 25 = 100, but they sell each song for 99 cents. Something's wrong with your calculation
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#2 Posted by ~~NeYo~~ on 08 Jun 2003 - 01:51
- I jus wanna see iTunes store in the Uk, with UK Music! ... Half of that ish on there, i've never heard of
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#3 Posted by insurgent on 08 Jun 2003 - 03:38
- I might use this service when it's available for Windows...it *is* nice, and one of the few things that I miss about my Mac...but...having Kazaa back is -really- nice too.
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#4 Posted by Krome on 08 Jun 2003 - 04:41
- hah I knew something like this.. was expecting this news
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#5 Posted by tiger2k on 08 Jun 2003 - 06:53
- i don't really plan on using the service, i just want Itunes
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(2 replies)
#6 Posted by dmise on 08 Jun 2003 - 07:28
- If iTunes for Windows is anything like Quicktime for Windows in terms of quality then I don't want it.
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#6.1 Posted by Homie on 08 Jun 2003 - 14:03
- youll prolly get musicmatch.... ahahahah oh man... someone shoot who made musicmatch..
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(3 replies)
#7 Posted by antsy on 08 Jun 2003 - 15:43
- What I dont understand is how its dont so well when only =<4% can use it no only is it mac only its not even OS X only but OS 10.2 only
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#7.1 Posted by Wickedkitten on 08 Jun 2003 - 23:19
- 10% actually. And thats them doing well just in America, they are going to be even bigger once they open it up to International mac users
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#7.2 Posted by macrosslover on 09 Jun 2003 - 07:02
- so you're saying Wicked...that 10% of Mac users in the US have at least 10.2 installed?
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#7.3 Posted by Wickedkitten on 09 Jun 2003 - 08:23
- no, actually there are 5 million mac users in the US that have jag installed
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#8 Posted by joetheblow on 08 Jun 2003 - 17:36
- we'll see what happenes. But it is easy to say that they are doing well with sales 500,000 a week is not bad. and I would think it will only get better as more people find out about it.
The more they sell the more profit they make with a multiplier (constant cost of servers and other will be smal if one copy of a song get sold 5000 times a week)
so in other words if they sell 10 they will make 10 but if they sell 10,000 they will make 100,000 because the cost to reproduce each time will be less than the previous one.
According to notes published on the web, Apple has sold 3.5 million songs since it launched its iTunes music store at the end of April
The computer manufacturer is selling about 500,000 songs a week and about half of those are sold as albums, allaying fears that people would choose individual tracks instead of a whole record.
The notes from the 5 June presentation behind closed doors by Apple boss Steve Jobs were leaked by independent record retailer CD Baby, which has since pulled the details from the web.
Bouyant sales
Apple's music store has proven to be a major commercial success, overshadowing the online subscription services offered by the major record labels.
The iTunes store has more than 200,000 songs from artists such as U2, Eminem and Sting for sale at 99 cents (62 pence) each.
The service got off to a flying start, selling a million tracks in its first week.
I didn't realise yesterday's presentation was supposed to be confidential. When I found out, I pulled the details. Honest mistake
CD Baby website
The initial buoyant sales have continued. The leaked notes from the meeting last week show that Apple has sold 3.5 million songs in the six weeks the store has been open.
Worries in the record industry that customers would cherry-pick hits have not come true, with 45% of all songs downloaded as part of a full album.
The store offers an opportunity to sample 30 seconds of a track before you buy. The notes say that people tend to listen to 10 previews for every song they buy.
And most people seem happy to store their credit card details on the iTunes store. Some 90% of sales are one-click downloads, which means a credit card is automatically charged when a track is bought.
Private meeting
About 150 representatives were invited to the meeting with Steve Jobs to discuss making their music available on the iTunes store.
The meeting was supposed to be private, but notes taken by one of the people at the meeting have leaked onto the net.
CD Baby took the notes off its website shortly after posting them. A note on the site says: "Sorry, there used to be more details here. I didn't realise yesterday's presentation was supposed to be confidential.
"When I found out, I pulled the details. Honest mistake."
However, the information has found its way onto other sites.
One deal for all
The notes also provide an insight into how Apple deals with record industry.
It treats everyone the same way, rather than giving preferential treatment to the major labels with the big stars.
The independent music representatives were told they would be offered the same terms as bigger labels and have the same team looking after their tracks.
According to the notes, Mr Jobs said: "We have to be more efficient, though. We're not going to deal with 200 lawyers.
"Everyone is going to get the exact same deal. It's not negotiable. It's take it or leave it."
So far the iTunes service is accessible to fewer than 5% of the world's computer users - those owning an Apple Macintosh and living in the United States.
A Windows version of iTunes is planned for later this year, and an overseas expansion is also on the cards.