“Nielsen Entertainment Research reports that music labels keep about 34 cents from each 99-cent music track sold through a-la-carte music services,” Frank Barnako reports for MarketWatch. “Approximately 31 cents goes to the seller, such as Apple Computer’s iTunes Music Store, and about 34 cents is paid out for rights and royalties, the research firm determined in a study of the market for on-demand programming. The economics of video downloads are similar. ‘Assuming the 70/30 split, the $1.39 net to the content owner is virtually identical to what a commercial-free episode of a TV series generates from a DVD box set,’ Nielsen said, according to the Hollywood Reporter.”
Full article here.
[UPDATE: 1:45pm EST: fixed headline.]
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