Why Apple CEO Steve Jobs will get whatever he wants in iTunes negotiations with music labels

Apple Store“A little-noted article in MacWorld UK last week presented some most interesting data regading iTunes versus the rest of the online digital music stores,” Carl Howe writes for Blackfriars’ Marketing.

The report cited Digital Music Group data that said that “89% of digital music revenue comes from iTunes versus 5% for all subscription services combined,” Howe writes.

Howe writes, “What this says to me is that despite music label griping about their needs for variable pricing and subscription services from iTunes, those services would, in fact, make less money for both artists and labels, despite iTunes larger volumes of sales.”

Howe writes, “With Apple now the fourth largest retailer in music in the US, and the largest digital music distributor, if a label wants to earn the most money for their music, they need an Apple deal, pure and simple.”

Full article here.

[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]

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