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Apple makes no revenue from iTunes?

Discussion in 'General Discussion' started by Julio Franco, Nov 7, 2003.

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  1. Julio Franco TechSpot Editor

    At an Apple financial analyst conference on Wednesday CEO Steve Jobs admitted that Apple makes no revenue from the online download service, the iTunes Music Store, that he launched in April. As iTMS is the leading download service, with 80 per cent market share (or so Jobs claimed), where's your 99 cents per song going?

    Read more: The Register.
    Could this be just another reason to hate the RIAA? You tell us.
    Julio Franco, Nov 7, 2003
    #1

  2. MoRulez Newcomer, in training

    Apple has no foresight?

    Can I get help understanding why Apple would choose to get into a business it would know gives it no big profit?

    The only reason I can see Apple being the RIAA's slave is to give it's potential customer base a better reason to buy an Apple product.
    MoRulez, Nov 8, 2003
    #2

  3. conradguerrero Newcomer, in training

    exactly, its called a "loss leader", something to attract and retain customers...
    conradguerrero, Nov 8, 2003
    #3

  4. Didou Bowtie extraordinair!

    You loose money on one side ir order to generate a lot more money in another way. Apple is loosing with iTuns but apparently they more then make up for it with iPod sales ( or so I understood ).

    It's a bit like console makers who sell the hardware almost at a loss & make a lot more money from the royalties on game licenses ( you pay royalties to console makers just to have the right todevelop games on their platform ).
    Didou, Nov 8, 2003
    #4

  5. Phantasm66 Newcomer, in training

    Do I need another one?
    Phantasm66, Nov 10, 2003
    #5

  6. DLx/P Newcomer, in training

    Kinda like DirectTV giving you the equipment and you signing a 1 year contract. Chances are you will stay with them even after the contract is up, so they make more money in the long run.
    DLx/P, Nov 10, 2003
    #6

  7. MoRulez Newcomer, in training

    Oh , ok thanks guys
    MoRulez, Nov 11, 2003
    #7
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