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View Full Version : When did an iTunes song become worth more than a dollar?


MacBytes
Jul 29, 2005, 08:56 AM
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Category: Apple Software
Link: When did an iTunes song become worth more than a dollar? (http://www.macbytes.com/link.php?sid=20050729095629)

Posted on MacBytes.com (http://www.macbytes.com)
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Applespider
Jul 29, 2005, 09:08 AM
The writer of this has forgotten something - that a good percentage of the 'free' codes are never redeemed.

If GAP gave a $1 to everyone who tried on jeans or Wachovia deposited $15 in a new check account, then it would cost GAP/Wachovia lots and lots of cash.

Giving redemption codes for the iTMS allows them to look up-to-date by jumping on the current iPod/iTunes bandwagon but more importantly, generous since you're getting something for nothing but since not all those codes will redeemed (and they won't pay until they've been redeemed), it saves them some of that 'lots and lots of cash'.

outerspaceapple
Jul 29, 2005, 11:55 AM
The writer of this has forgotten something - that a good percentage of the 'free' codes are never redeemed.

If GAP gave a $1 to everyone who tried on jeans or Wachovia deposited $15 in a new check account, then it would cost GAP/Wachovia lots and lots of cash.

Giving redemption codes for the iTMS allows them to look up-to-date by jumping on the current iPod/iTunes bandwagon but more importantly, generous since you're getting something for nothing but since not all those codes will redeemed (and they won't pay until they've been redeemed), it saves them some of that 'lots and lots of cash'.

Sure you've got a point there man, but the writer also has a good one. People seem to perceive that an ITMS song is worth more than $0.99. I know i do. :rolleyes: .

The percentage of people who wouldn't redeem the code is much smaller than the percentage of people who will now try on a pair of pants they otherwise wouldn't. If, like the author said, GAP started giving away dollar bills instead of ITMS songs - they WOULD NOT have as many people try on those jeans.

Thats the point of his article. :cool:

granex
Jul 29, 2005, 02:28 PM
The other missed point is that I'm sure that these guys are not paying $0.99 per song. It's been a long time since I looked into it, but Apple runs a bulk service for redemption codes.

"I know it seems difficult to see how we can make a profit giving songs away for free, but we make up for it with volume!"

autrefois
Jul 31, 2005, 05:25 PM
I think the article writer has a really good point, and everyone who's posted here so far, too.

Companies are really jumping on the iTunes bandwagon, and hoping you will blindly go for their product just because you hear the word "iTunes" associated with it.

From a business stand point, I guess it does make sense. It's cheaper than a dollar off (because of bulk sales) and doesn't hurt Apple since as has been pointed out, a lot of those people won't actually redeem their code(s).

It's the consumer who should realize that you shouldn't try on a pair of jeans or sign up a bank account just because you get free iTunes codes. But that's just my opinion obviously. :)

pubwvj
Jul 31, 2005, 08:09 PM
The writer of this has forgotten something - that a good percentage of the 'free' codes are never redeemed.

Fun thing when the Pepsi iTunes promotion was going on was that when our family went for walks we got a lot of free songs (>30). We normally pickup the bottles on the side of the road and the kids get 5 cents for turning the bottles in at the store. But with the iTunes songs we also got an extra 99 cents in effect. I was surprised at how many wins there were. It was more like 50% rather than the 30% or so that I expected (1 in 3 win!).