iTunes Sales "Collaspsing"

And then follow the link to Peter Jenner's interview.

Who wants to be a big music company man now?

Jono

Depends what you read...

I just read that the iTunes store had 413% more visitors this Xmas than last, that the Apple Store was the fourth most visited web site on 25th December and that UK music downloads in 2006 were double their 2005 levels. So, all crash and burn then.

Phil

quote:

Originally posted by Whizzkid:
I thought this ( The Registry) might be interesting to us lovers of HiFidelity.



Dean

Good.

iTunes is a great big bag of marketing-hype that sadly, in the deluded world we live in, people have generally fallen for. Allofmp3.com has been going for years now selling albums for les than £1 and with a cut going to the artists (Have you seen the cut Apple take for themselves from iTunes dowloads??? The artists should be so bloody lucky).

In December's Mojo magazine I read the quote from some young "star" whose name I can't remember saying the album she listens to most at the moment was "£7.99 from iTunes. A bargain!!". The fact you can get a CD copy of it for that from CDwow seems to have escaped this new breed of consumer idiot.

Jonathan

Hi all

When reading statistics I feel you should look at the sites that are presenting those stats and who backs them and then you can judge who may be nearer to the truth. I'm just sceptical about downloading as a way forward in Music distribution and the link I found might be a chink in the armour of this downloading is the future we are being told ad nausuem when the big players are computer companies whose only interested in profit. Convenience and Technology are not always better for us in the long run we could lose a lot more besides the quality of Music available.



Dean

If i should buy a large mp3 storage unit (say 10 GBs) how much money do i need to fill up the hard disk?
What happen if my brand new mp3 storage unit fall on the floor or in the water.
I could keep a copy of my mp3 in my pc's HD.
What happens if i get a virus that kills my pc?
My i ask the download site to have them replaced?
So i burn them, but the price encreases.
And a burned cd is "burned" and not pressed with a loss of informations during the several passages.
What can happen if, here in Italy, an agent of SIAE ( italian society of authors and editors) stops me and ask me to demonstrate that what i have is not a Peer to Peer download but a "genuine" download?
One minute of stereo wave pcm audio format is 10 MB.
On mp3 ( the gummy sound, strecht it as you like) format they say they cut what's "not necessary".
But who decide what's not "necessary" in sound?
Wav or Wave format is a product of the computer industry.
Mp3 is a product of the broacasting industry (DAB project).
Apple Lossless Encoder is one of the sons of Apple computers.
So..........................a matter of money.
What about music and what about sound?
What about feelings and what someone call the "live experience"?
Do they have a value or are we bound to lose them because not "necessary"?
I keep my Naims.

Two points - first off allofmp3.com is of, shall we say, questionable legality at the least. Second, these statistics seem to come from part of a consumer survey of 5500 or so people, of whom only around 180 or so have shopped at itunes. It is based on the behaviour of these people that the 'collapse' is based. To suggest this is nonsensical is in my view something of an understatement; surely the only measure of whether itunes sales are collapsing is what those sales figures themselves (whether it be units sold, or takings).

http://www.linuxinsider.com/story/RfI9dW2U3d9Cw7/Furor-...-Sales-Figures.xhtml

regards, Tam

quote:

Originally posted by Shayman:
iTunes is a great big bag of marketing-hype that sadly, in the deluded world we live in, people have generally fallen for. Allofmp3.com has been going for years now selling albums for les than £1 and with a cut going to the artists (Have you seen the cut Apple take for themselves from iTunes dowloads??? The artists should be so bloody lucky).

Jonathan

I thought Apple made little if anything on ITMS sales, rather that it's a means of making money through selling more iPods.

A few minutes with Google found this quote (admittedly from 2003):

"The dirty little secret of all this is there's no way to make money on these stores," [Jobs] 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," Jobs says, grinning.

http://www.time.com/time/2003/inventions/invmusic.html

The numbers about iPod are larger than the PCs' sales.
Anyway, good or bad, for anybody interested:
valves iPod station.
http://www.fat-man.co.uk/docs/product/itube_1.htm
And i thought that they had no soul!

quote:

A few minutes with Google found this quote (admittedly from 2003):

"The dirty little secret of all this is there's no way to make money on these stores," [Jobs] 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.

How on earth do Apple come to the conclusion that 25% of the cost of a download goes on their "distribution costs". Utter rubbish.

A quick search just now lead me to this quotation. Admittedly from an iTunes is bogus site.

Apple says iTunes is "better than free" because it's "fair to the artists and record labels." That's simply not true. First of all, Apple gets 3 times as much money as musicians from each sale. Apple takes a 35% cut from every song and every album sold, a huge amount considering how little they have to do. Record labels receive the other 65% of each sale. Of this, major label artists will end up with only 8 to 14 cents per song, depending on their contract. Many of them will never Artists Get Ripped Off. even see this paltry share because they have to pay for producers and recording costs, both of which can be enormous.

Shayman, with respect, one artist I know personally now distributes his work via only itunes and CD Baby for the simple reason that he gets a far better deal than he ever did when he used to have a contract with EMI.

If little money is getting to the artist after 65% has gone to the record company it is surely with the latter more than Apple, that the blame lies.


regards, Tam