“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.]
Related articles:
What Apple and the music labels are discussing in iTunes Store negotiations – May 09, 2007
Apple CEO Steve Jobs seeks to end DRM in new iTunes talks with labels – May 06, 2007
Some music labels’ execs still think they can stop the inexorable DRM-free tide – May 04, 2007
Apple tells iTunes Store partners: you can offer DRM-free music and music videos soon – April 27, 2007
Apple enters re-negotiations with music labels in position of strength, to push for DRM-free music – April 20, 2007
EMI’s Nicoli on DRM-free iTunes: ‘We have to trust our consumers,’ Apple’s Jobs: ‘right thing to do’ – April 02, 2007
Kudos to Steve Jobs and Apple for having courage to call for end of DRM and making it happen – April 02, 2007
Apple: Higher quality 256 kbps AAC DRM-free music on iTunes Store coming in May – April 02, 2007
Apple CEO Steve Jobs’ posts rare open letter: ‘Thoughts on Music’ – calls for DRM-free music – February 06, 2007
Apple inks deal with big four labels: iTunes Music Store prices stay at 99-cents per song – May 01, 2006
Analyst: Apple in driver’s seat when it comes to renegotiating with music labels – March 31, 2006
In 99-cent fight with ‘Looney iTunes’ labels, Apple CEO Jobs will get whatever Jobs wants – September 29, 2005
Analyst: Apple has upper hand in iTunes Music Store licensing negotiations with music labels – September 23, 2005
FT: Steve Jobs’ position in negotiating with music labels ‘undeniably getting stronger all the time’ – April 06, 2004
oh how I miss allofmp3.com
I’m sure the music labels all have some weird accounting schemes they use with brick and mortar sales (getting paid by the retailer before the retailer sales the CDs, then giving the retailer something back on “returns” of unused merchandise which is then reselling the returns to someone else, et. al.) With iTunes, it is all to simple, when Apple sells a song they get paid. No returns, no write-offs, no accounting “magic.”
MW: “figure” Steve Jobs was the one to finally figure outdigital music sells.
Zune will win the music label war
Record labels can shove the variable pricing up to “where the sun don’t shine”.
Hey MDN why is there a zune Ad at the bottom of this site!
Wow, are the Reader Feedback postings small and harder to read?
Well, look, I just want to say th-
OHH MY GOD!!!!! MY EYES!!!!! EVERYTHING SUDDENLY GOT SO . . . SMALL!!
I . . . I CAN’T . . . I CAN’T SEEEEEEEE!!!!!!!!!!!!
As Steve Martin used to say . . . .
“Let’s Get Small !”
This is amazing. I can not understand why the studios would sign on with iTunes competitors if this is really true. Is it? Blackfriars has a great track record, but this is unbelievable.
BUT!!
Digital sales PALE in comparison to CD sales.
The Labels could walk, start their own sites and sell their music in MP3 DRM free format.
After all Jobs is recommneding DRM free music anyway, so who needs him? iTunes will manage the MP3 files from other sites just fine.
ABC and NBC already have started their own video download sites paid for by commercials.
Most people would take the pain of watching a few commercials to get their content for free.
True, the labels could walk. But they walk away from the revenue also. If the alternatives that the labels themselves launched are not as simple as iTunes then they can forget it. Plus everyone would have to hunt and peck for their favorite artists, I don’t know what labels ant of them are on, who cares. That’s a deal breaker in my book.
Aren’t the postings about the size they were before the site redesign?
And there is usually a space before and after each posting. Like this one if I did it correctly.
So much for that theory.
either they let go of DRM or I’ll just get my music from Limewire…screw the Record business!
They’ve been screwing me my whole life, it’s time I give a little screwing back.
They need to do what I say or they will not get one red cent from me again.
MegaMe,
“oh how I miss allofmp3.com”
The site is still going and you can purchase gift certificates to load your balance. Allofmp3 is operating “alongside” Mp3sparks.com with the latter being exactly the same as allofmp3 except mp3sparks has credit card facilities.
Ask ofr your money back MDN. The site doesn’t work very well.
Wtf is wrong with this page???
Dito Chuck! Dito Macaday
Squint Squint
I’m mellllllllting.
Meeeeeellllllltttttiiiinnnnngg…..
Wow, weed is stronger than in 1975. </pre>
Chuck
Well, look, I just want to say th-
OHH MY GOD!!!!! MY EYES!!!!! EVERYTHING SUDDENLY GOT SO . . . SMALL!!
I . . . I CAN’T . . . I CAN’T SEEEEEEEE!!!!!!!!!!!!
LOL!
Too hard to add credit to allofmp3.com
So use legalsounds.com instead.
Legalsounds doesn’t have high bitrates. Yes I know it’s hard to refill your balance with allofmp3 but you just have to hunt around for a gift certificate. Maybe you check the blogs at allofmp3 and google “friends of allofmp3”. Sorry for the delay in replying to your post.