Jan 22, 2004, 09:48 AM
Category: Apple Software
Link: Apple Director Chris Bell on Why iTunes Rocks (http://www.macbytes.com/link.php?sid=20040122094805)
Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug
Jan 22, 2004, 12:10 PM
I think we're in a unique situation, because a key part of our strategy is to drive sales of iPod, and we see that in tandem with the music store. The music store has a positive margin that will grow exponentially, but if that was our only story, we might need to be worried about competition.
Interesting. Previously Apple's line has been that the music store does a little bit better than breaking even, but they never seemed to mention that there might be a curve where it could eventually make real money other than indirectly through iPod sales. I wonder if the major labels' cut has some kinf of volume discount built in.