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MacBytes
Aug 5, 2003, 01:51 PM
Category: Apple Services
Link: .Mac subscribers top 400,000 users. (http://www.dotmac.info/index.html/news/130/)

Posted on MacBytes.com (http://www.macbytes.com)

MacManDan
Aug 5, 2003, 02:35 PM
Wow, not bad .. that means $39,980,000 in revenue. I wonder what their operating costs are for .Mac. They probably earn a pretty penny in profit ..

Speaking of services, iTMS still has quite a few more songs to sell before it will generate that kind of revenue, and I bet that the iTMS operating costs are significantly higher (with licensing fees and such, but this is just my guess). Seems like .Mac was a pretty profitable idea .....

MacFan25
Aug 5, 2003, 03:31 PM
Originally posted by MacManDan
Speaking of services, iTMS still has quite a few more songs to sell before it will generate that kind of revenue, and I bet that the iTMS operating costs are significantly higher (with licensing fees and such, but this is just my guess).
If I remember correctly I think Apple gets like $0.35 off each song purchased. (Correct me if I'm wrong). So, iTMS probably isn't as profitable as .mac is right now, but it could turn out to be very profitable once it comes to Windows.

nagromme
Aug 5, 2003, 05:34 PM
iMS already nearly broke even--much sooner than expected.

I believe for each song the label (and artist) get .65 and Apple gets .34. But Apple must pay its costs out of that .34, it's not all profit. The credit card company takes a chunk from Apple's cut too.

Jerry Spoon
Aug 5, 2003, 11:05 PM
That whole article is actually an interesting read. I'm kind of suprised at the number of .mac subscribers, but I'm probably even more suprised that I'm renewing my subscription. I didn't think I would even two months ago, but now I'm pretty sure I am.

wdlove
Aug 6, 2003, 06:41 PM
That is an interesting article. Congratulations to Apple. My wife has a .mac account and plans to renew!