Apple Sells 25 Million Songs On The Internet!

Discussion in 'Music' started by Lee Scoggins, Dec 16, 2003.

  1. Lee Scoggins

    Lee Scoggins Producer

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    http://www.macobserver.com/article/2003/12/16.4.shtml

    More evidence that a computer company can outsmart the major record labels with good product design.

    I hope this tremendous milestone will prompt more titles to be available for download. There is a lot of work to be done in terms of back catalog.

    I asked my wife today for an iPod for Christmas. [​IMG]

    The amount of music sold is staggering - the Wall Street Journal said today that the songs were selling at $0.99 at an average clip of 222,000 per day! Wow!

    Sign me up.
     
  2. Peter Kline

    Peter Kline Cinematographer

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    ... and my favorite singer of all time was the 25 millionith download:

    "Let It Snow!, Let It Snow!, Let It Snow!" by Francis Albert Sinatra

    Rumors are rampant (just rumors of course) that Apple will be introducing a surpise iPod on January 6 at MacWorld. Could be a $199 version of the present one or a new smaller, lower capacity version for kids and teens. Apple will have a major promotion with Pepsi starting on the Superbowl. Free downloads (a special code number) on cans of Pepsi products will be available.
     
  3. Marc Colella

    Marc Colella Cinematographer

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    But... but...people only steal music from the internet - noone actually pays for it.

    [​IMG]

    Maybe the record labels will finally update their business model to reflect the demands of consumers.
     
  4. Chris Farmer

    Chris Farmer Screenwriter

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    Eh,I'd just as soon the record labels stayed out of it. As soon as they go over the internet you get fragmentation of the market. Just ltet them keep working through Apple (I'd mention the others, but I don't think any of them have sold even one million songs yet).
     
  5. Seth_L

    Seth_L Screenwriter

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    I'm surprised no one has pointed out that the Apple Music store hasn't turned a profit yet.
     
  6. Seth_L

    Seth_L Screenwriter

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  7. Michael St. Clair

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    The 99 cent downloaded song market is still very much unproven at this point. You expect a sales decline after an initial spike with a new technology, but with iTunes, the last time I looked (August), sales were still declining every single week with no upturns, and this was after several months.

    It's harder to find more recent weekly sales figures, and this may be very intentional. I am sure there was a huge spike when the Windows version rolled out, but what is the currently weekly trend?

    Perhaps some of this is seasonal, but it will be very interesting to look at the trend numbers at the end of the first year (April 2004 I think).

    I'm interested in a harddrive-based MP3 player (maybe an iPod, maybe a Karma), but I'll not be paying for downloads until the quality increases (I'll take 320kbps MP3 over 128kbps AAC) and the price is less than I pay for my albums in the store. I'll continue to use my portables with my own legal CDs, as I've done for years with Minidisc.
     
  8. Lee Scoggins

    Lee Scoggins Producer

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  9. Dave Bennett

    Dave Bennett Screenwriter

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    I've got news for you folks. It's a dirty little secret, but Steve Jobs has admitted that the music store won't make much if any profit. See the Time magazine article a few weeks ago for the direct quote.
    They're using it as a way to entice people to buy iPods, which is why you'll notice the tab on the Apple home page is labelled "iTunes and iPod".
    I'm sure they'll make some profit, but probably not much. Now on the iPod, that thing has consistently been ranked as one of the top three, if not the top, MP3 player since it's introduction in September of 2001. If sales keep going up, that's where Apple will make a bundle.
    As Windows convert(wow it's been almost 5 years!) I knew Apple had something special with iTunes. When I first tried the music store, I knew they had a great idea and a great implementation on their hands. iTunes for windows, which had long been rumoured, was a great move(and several of my windows using friends were eagerly awaiting it and now use it instead of Winamp etc).
    I think a cheaper smaller capacity iPod would be great, especially if they could bring the size down a bit for people who want something to use while working out etc.
     
  10. Brian-W

    Brian-W Screenwriter

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    Apple AT BEST makes .10 per song. Reality is more like .03-.07 per song.

    The rest goes to the studio and for overhead. Under the best circumstances, Apple has made $1.75 million so far.
     
  11. Lee Scoggins

    Lee Scoggins Producer

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  12. Garrett Lundy

    Garrett Lundy Producer

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    Wow Thats $25,000,000.00 (say it with me Twenty-Five Meeleon Dollars) That the record companies would not have ever earned without Apple iTunes.

    I think that Apple making very little of each $.99/song is temporary. In the short therm they will make their profits from the iPod (Best thingy since the Walk*Man). After another few years of industry crippling MP3-theft, I think that the record companies themselves with downsize, restructure, and eventually make less of that same $.99/song pie as they do now. (For example when 51% of all music is sold over the internet and Mr.Job's gives the ultimatum "Nah, I want a bigger share. I'll offer you only $.49/song since I have to do all the distributing").
     
  13. Peter Kline

    Peter Kline Cinematographer

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    Apple rumor sites are reporting all kinds of things re the iPod. Usual state of affairs prior to a MacWorld. Legal music downloads are indeed not bringing in much profit ... at the moment. Makes you wonder why so many companies are jumping on the bandwagon. Apple uses the store as a kind of trojan horse to sell iPods. (It's working, obviously). At some point they'll start making a profit. I don't know where that point is (no, not on the top of my head) but it is in the future. The Apple Store near me is selling about 10 a day for the last two weeks. Because of licensing/label differences, iTMS in European countires and Canada have to be negotiated on a country by country basis. I suspect that an announcement will be made at MacWorld about iTMS availability outside the U.S.
     
  14. Marc Colella

    Marc Colella Cinematographer

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    I think it's an outstanding start.

    The labels would rather sell 25 million songs than zero.

    This business model is still young, and I'm sure sales will increase greatly over the next few years as more people get online with high-speed service, and more portable MP3 players are sold.

    One important thing this brings is that it gets more people interested in listening to music and more artists are exposed.

    I don't see how this could be anything but positive.
     
  15. Brian Perry

    Brian Perry Cinematographer

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  16. Garrett Lundy

    Garrett Lundy Producer

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  17. Dave Bennett

    Dave Bennett Screenwriter

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    Lee,
    My comments were more directed at Michael St. Claire's "well it hasn't made a profit yet" comments. I agree with your rationale but just wanted to point out to Michael that not even Apple themselves sees it as profitable. However, the iPod is very profitable [​IMG]
     
  18. Michael St. Clair

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    This is beyond absurd. I have never made any such ridiculous claim as "it hasn't made a profit yet", and it is damned sad that anyone here would attribute completely false quotes to any forum member.

    I said that "The 99 cent downloaded song market is still very much unproven at this point", and anybody who wants to believe otherwise is fooling themselves.

    April 28th - 200,000 songs a day
    May 5th - 140,000 songs a day
    May 14th - 125,000 songs a day
    May 28th - 140,000 songs a day
    June 28th - 89,000 songs a day
    July 22nd - 52,000 songs a day

    One would hope that at some point, decline actually stops. Has it?

    Am I saying that they are losing money? Nope. Am I saying the model will be unable to sustain sales at some profitable niche, and hopefully experience growth? Nope. I am simply tempering hype with reality. It is simply too early to tell.

     
  19. Lee Scoggins

    Lee Scoggins Producer

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  20. Michael St. Clair

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