10,000,000 Songs Sold via iTunes Music Store

[MacBytes]

Alongside new iPods (http://www.macrumors.com/pages/2003/09/20030908090240.shtml) and new iMacs (http://www.macrumors.com/pages/2003/09/20030908085643.shtml), Apple announced their most recent progress with the iTunes Music Store.

This Press Release (http://www.apple.com/pr/library/2003/sep/08musicstore.html) reveals that the iTunes Music Store has sold its 10 millionth song on September 3rd:

—Apple today announced that music fans have purchased and downloaded over ten million songs from the iTunes Music Store since its launch just over four months ago, averaging over 500,000 songs per week. The ten millionth song, “Complicated” by Avril Lavigne, was purchased and downloaded at 11:34 p.m. (PDT) on September 3.

[Mr. Anderson]

That's fantastic. It really makes you wonder what the numbers would have been if they had managed to get a PC version of iTunes up and going sooner.

D :D

[Mudbug]

that's a pretty big number...

at a buck a piece (roughly) that makes 10 million dollars in my book...

[FredAkbar]

How much of that buck does Apple keep though? I've heard (on these forums) that it's as little as like 10 cents.

[jxyama]

had to be avril, eh..?

anyone remember the announcement timing of other milestones? it would be interesting to see time vs. sales to see if it's now at a steady pace after the initial jump or if it's come down at all..?

[hayesk]

Originally posted by FredAkbar
How much of that buck does Apple keep though? I've heard (on these forums) that it's as little as like 10 cents.

I read it's 33 sents.

[howard]

i am extremely glad to see this service do so well.

i'd like to know how much the artist gets from that $.99.

also i know apple as between 3-4% market share...but how many people is that? i'd like to know the average amount of songs per user

[Stella]

This is impressive, considering its US only AND Mac Only.

Just imagine the figures if iTunes store was world wide....

[stefman]

Wow! That's amazing!!

Now if we can have the international iTunes Music Store, I can start contributing to those numbers!!:D

[BigJayhawk]

It would be kind of cool to realize that YOU were the person that downloaded that particular song at that particular time. What do you win???

[jxyama]

a quick and dirty chart...

pretty impressive, actually. sales don't seem to have slowed down too much... (comparing the slopes from the beginning...)

afaik, official announcements were:
april 28 - start
may 5 - 1 million
may 14 - 2 million
june 23 - 5 million
sept 3 - 10 million

slope of the last two points is roughly 70,000 songs per day... or 500,000 a week... matching the announced rate. that is compared to the initial week of 1 million. not a bad drop at all.

[AppleMatt]

Originally posted by FredAkbar
How much of that buck does Apple keep though? I've heard (on these forums) that it's as little as like 10 cents.

Originally posted by hayesk
I read it's 33 sents.

I think you're both right. IIRC, the record companies get 66 cents, Apple get the rest, but after the costs of iTunesMS, they end up with 10c profit. Someone correct me if I'm wrong.

(I vaguely also remember reading they were initially running the store at a loss)

AppleMatt

[Squire]

That's 1000 40GB iPods! ;)

Squire

[csimmons]

Originally posted by Stella
This is impressive, considering its US only AND Mac Only.


...AND OS X only, which means less than 1% of worldwide computer users bought 10,000,000 downloads.

Very impressive, when you see it that way, IMO. :cool:

[alia]

Wow, these numbers are great! I really can't wait until they come out with the Windows iTunes. :)

I know I'd be downloading pretty much immediately!

Alia

[howard]

Originally posted by AppleMatt
I think you're both right. IIRC, the record companies get 66 cents, Apple get the rest, but after the costs of iTunesMS, they end up with 10c profit. Someone correct me if I'm wrong.

(I vaguely also remember reading they were initially running the store at a loss)

AppleMatt

what costs them so much money to run the store...once its up isn't that almost the end of expenses...besides keeping the servers up and what not...

[jxyama]

any idea how buymusic.com is doing..? with 30x the machine base, they'd have to sell nearly 15 million songs per week to "match" the rate of iTMS.

have they even sold 1 million songs yet?

he he :D

[billyboy]

whether its 10 or 30 cents profit, its all money being paid to Apple for advertising the iPod and demonstrating Apple´s slick and profitable solution to a very tricky music problem. Clever business I think.

[bobindashadows]

Originally posted by csimmons
...AND OS X only, which means less than 1% of worldwide computer users bought 10,000,000 downloads.

Very impressive, when you see it that way, IMO. :cool:
I'm liking it... I like it a lot. Anyone know the upstart costs for the iTMS? I don't think 1 million bucks is that bad for a brand new thing available to so few comp users...

[P-Worm]

I think this is terrific. This store has really cought on hasn't it? Too bad we can't see some of BuyMusic's numbers. :rolleyes:

P-Worm

[AppleMatt]

Originally posted by csimmons
...AND OS X only, which means less than 1% of worldwide computer users bought 10,000,000 downloads.

Apple's consumer market share is currently hovering around 3.5%, it's been going up for the last two years.

http://www.macrumors.com/pages/2003/09/20030904111142.shtml

But I agree, it's still very impressive ;)

Originally posted by howard
what costs them so much money to run the store...once its up isn't that almost the end of expenses...besides keeping the servers up and what not...

Notice I said initially. There's an initial cost to bringing it online, and that initial cost would be covered by x amount of songs sold, after that figure has passed, Apple are selling at a profit. It's not just limited to Apple, take a look at console manufacturers.

Ongoing costs include maintenance, bandwidth, support, PR, staff, fixing errors etc etc.

AppleMatt

[Java]

Originally posted by Stella
This is impressive, considering its US only AND Mac Only.

Just imagine the figures if iTunes store was world wide....

US...Mac Only...Jaguar Only

[alia]

Originally posted by Java
US...Mac Only...Jaguar Only

It's not Jaguar only. My mom is running 10.1 and she has iTunes 4 and the Music Store.

Alia

[Photorun]

That seems like a lot of songs until you realize they'd all fit on 1,000 new iPods.

[mactastic]

Nice numbers. Glad I've been able to contribute. My purchased music list is now at 101 songs. Most were full albumns, so probably not quite $100 worth. No Avril though.

[BigJayhawk]

Originally posted by AppleMatt
Apple's consumer market share is currently hovering around 3.5%, it's been going up for the last two years.

http://www.macrumors.com/pages/2003/09/20030904111142.shtml

But I agree, it's still very impressive ;)

AppleMatt

LESS THAN 1% IS MUCH MORE ACCURATE FOR THIS THREAD.

Remember, (as mentioned before), ITMS is only for those that Have a MAC, Have OSX, Have a U.S. Billing Address, Have a Credit Card, Have an Internet Connection, etc.

And, that is ASSUMING that all of these people have even so much as CLICKED on the iTunes icon to begin with. Don't underestimate the reasons that EVERYONE AND THEIR MOTHER are trying to copy Apple on this one!

[crees!]

So have you noticed how there is Windows compatability plastered over every hardware spec and ad concerning the iPod? Do you think this is a precedent for the iTunes for Windows coming of age? Maybe sooner than we expect?

[e-coli]

Originally posted by Photorun
That seems like a lot of songs until you realize they'd all fit on 1,000 new iPods.

Oh, man. And I only have 350 iPods. ;)

I thinks it's great. I've purchased quite a few tunes from the store. The Rolling Stones addition is a great step in the right direction.

Now they just need to work on their paltry Electronica section.

[csimmons]

Originally posted by BigJayhawk
LESS THAN 1% IS MUCH MORE ACCURATE FOR THIS THREAD.

Remember, (as mentioned before), ITMS is only for those that Have a MAC, Have OSX, Have a U.S. Billing Address, Have a Credit Card, Have an Internet Connection, etc.


Correct. The Mac has 3.5% worldwide "market share" (=sales per quarter. REMEMBER THAT!!:D), but around 10 - 12% installed user base.

Apple themselves said that around 20% of all Mac users are currently using OSX (which BTW is more that the percentage of Windoze users on XP.), so my 1% figure is quite accurate, I believe.

[rog]

Whose the nitwit who bought that song? I'd gladly pay 99 cents to not have to ever hear it again!

[csimmons]

Originally posted by rog
Whose the nitwit who bought that song? I'd gladly pay 99 cents to not have to ever hear it again!

Are you familiar with the saying , "Don't hate the player; hate the game" ?:D

[rjwill246]

Originally posted by alia
It's not Jaguar only. My mom is running 10.1 and she has iTunes 4 and the Music Store.

Alia


Yipes!!! get your mum a faster OS! She won't know what hit her!

[AppleMatt]

Originally posted by BigJayhawk
LESS THAN 1% IS MUCH MORE ACCURATE FOR THIS THREAD.

Alright, I misinterpreted the post, which can happen, BUT THERE'S NO NEED TO SHOUT.

If the original post had said, along the lines of, "taking into account..." then I wouldn't have misinterpreted it.

Anyway, of course everyone copies Apple. Microsoft may own 95% of the boat, but Apple's 5% is the rudder ;)

AppleMatt

[JediMacster]

I know that this may knock this thread WAY off topic, but considering:

1) Impressive iTMS sales;
2) New iPods w/heavily marketed Windows compatibility; and
3) Apple Expo Paris 'round the corner

Methinks the Steve-note might unveil either International iTMS (Why? Paris anyone?) or iTunes for Windows.

Any thoughts? :confused:

[encro]

Originally posted by e-coli
Oh, man. And I only have 350 iPods. ;)

I thinks it's great. I've purchased quite a few tunes from the store. The Rolling Stones addition is a great step in the right direction.

Now they just need to work on their paltry Electronica section.

The only thing paltry is Americans calling dance music electronica. The most rediculous word ever invented to frame the genre.

[encro]

Originally posted by rog
Whose the nitwit who bought that song? I'd gladly pay 99 cents to not have to ever hear it again!

Total agreement.

iTMS should pay the user .99 cents to wash its hands clean of ever dealing with such a pretend star with no street cred ;)

oh well, its a commercial service designed to appeal to everybody.

[xtekdiver]

Imagine what that number will be once iTunes is released to the Windows market. Whatever their take, Apple is sitting on a huge profit potential. Hmm...once the shareholders get a taste for that I bet the other iApps will be next.

[encro]

I'm not sarcastic normally :D

honest.

[nagromme]

Didn't Apple say the store broke even very rapidly, faster than they planned? So they must be pocketing profit now.

Breakdown:

.99 cents per song

minus .65 to the record label (artist gets some)

minus Apple's costs (servers, labor, power, bandwidth, legal, etc. But note that the major work--encoding and uploading songs--is done by the labels, who must buy Macs for the purpose)

minus the cut taken by the credit card companies (per transaction--and Apple is smarter than buymusic.com, they combine all songs purchased in a short period into a single transaction)

[jbembe]

Yes, I have 43 gigs of music, all of which I own on CD except a few that I have purchased from iTMS on my external 80 gig hard drive.

And yes, I have been saying ever since I purchased the 10 gig old fashioned iPod a month before the 20 gig was available over a year ago that I would get the 40 gig as soon as it came out.

Finally! Now my wife won't have to ask me to meet up with her to give her the 10 gig every time she wants to go work out, she can have it for herself and have only the songs she likes on it.

As for me, I can put all but 3 gigs of music that I own on it!

SWEET.

[jamesatzones]

So, I want to know if the individual who downloaded the 10 millionth song actually receive notification that they broke the mark... Not that it would really matter, it would be kinda cool to know though...

[obeygiant]

Originally posted by Mudbug
that's a pretty big number...

at a buck a piece (roughly) that makes 10 million dollars in my book...

actually its 9,900,000.
those 10 million pennies make a difference.

[billyboy]

Originally posted by xtekdiver
Imagine what that number will be once iTunes is released to the Windows market. ... Hmm...once the shareholders get a taste for that I bet the other iApps will be next.

I cant see that happening. I reckon that by going big time for iTMS Apple are aiming to get people gagging to find out what other iApps they have apart from iTunes. Sorry PC bods, if you want iPhoto and iMovie and everything else we have that works with equal iTunes slickness, you just got to buy a Mac.

[Loopy]

Originally posted by e-coli
Oh, man. And I only have 350 iPods. ;)

I thinks it's great. I've purchased quite a few tunes from the store. The Rolling Stones addition is a great step in the right direction.

Now they just need to work on their paltry Electronica section.

DiN records, the label that my album "Art of Sacrifice" is on are talking to Apple at the mo..... Looking forward to seeing my name on the store.

If you fancy a preview go to www.dbkaos.com sorry about the plug but I'm very excited about this.

[e-coli]

Originally posted by encro
The only thing paltry is Americans calling dance music electronica. The most rediculous word ever invented to frame the genre.

Actually, I meant ELECTRONICA, not DANCE, as I stated. :rolleyes:

And, yes, the ELECTRONICA section is woefully inadequate. Dance is in a different category on iTMS. You might have seen it, it's called DANCE.

I can't stand the cheap anti-American shots. The attitude is so tired. Get over yourself.

[Loopy]

Originally posted by e-coli
Actually, I meant ELECTRONICA, not DANCE, as I stated. :rolleyes:

And, yes, the ELECTRONICA section is woefully inadequate. Dance is in a different category on iTMS. You might have seen it, it's called DANCE.

I can't stand the cheap anti-American shots Europeans are famous for. The attitude is so tired. Get over yourselves.

who's anti-American not me

I'm just a hippy kinda chap who writes Electronica for the modern ear, but when I go out live I make them Dance.

[ColoJohnBoy]

Awesome! That's just about 2.5 million a month, no? And considering less than 3% of computer users (seeing as how you have to be running 10.1.5 or later) are making the purchases, what kind of craziness is going to happen when iTunes is ported to Windows?!?! I'm drooling with anticipation.

PS - Has Apple said which versions of Windows iTunes will be available on? I was thinking, and it seems they'll probably only release it for ME/2000/XP. Does that sound about right?

[york2600]

Too bad the song that person bought was so incredibly horrible.

[srobert]

Originally posted by e-coli
Actually, I meant ELECTRONICAI can't stand the cheap anti-American shots Europeans are famous for. The attitude is so tired. Get over yourselves.

As a third party observer, neither french nor american, I can say that I see dung fly from both direction over the atlantic. Maybe even more east-bound.

Also, Encro's profile marks him clearly as Australian, and australia is not part of Europe.

... let's all be friends. ^_^ ... and I'll have a large portion of freedom fries with that... or "patates frites" as we french-Cannucks call 'em.

Your friendly Canuck,

Me

[simX]

Originally posted by jxyama
any idea how buymusic.com is doing..? with 30x the machine base, they'd have to sell nearly 15 million songs per week to "match" the rate of iTMS.

have they even sold 1 million songs yet?

he he :D

Didn't Scott Blum claim that he would be able to sell 500,000 songs a day?

Methinks that it's not selling nearly as well as the iTMS (despite the much bigger pool of customers), which is why we haven't heard any stats on their sales. :p

[e-coli]

Originally posted by srobert
Also, Encro's profile marks him clearly as Australian

heh...I guess you're right. Should have looked at that. ;)

[jettredmont]

Originally posted by AppleMatt
Apple's consumer market share is currently hovering around 3.5%, it's been going up for the last two years.

http://www.macrumors.com/pages/2003/09/20030904111142.shtml

But I agree, it's still very impressive ;)


3.5% overall users.

% in US? Call it 50%.

% with Jaguar? Call it 30% (20% was the target for January I believe)

By my count, that's about 0.52% of all computer users.

Even giving 75% installed base in the US and 50% of all users using Jaguar and iTunes4, you still end up with 1.3% ...

So, yes, 10M songs to at or less than one percent of the computer-using market is pretty darned neat.

Of course, IMHO, those Mac users without Jaguar are significantly less likely to use iTMS anyways, as are those hordes of Windows 95/98 users out there ... which significantly reduces the potential market size.

Which means, you'll never get to 100% of the installed home computers out there ... maybe closer to 50% with the ability to use the product and ~25% with the desire to use it.

[jettredmont]

I dunno. It fits Apple's competition too well to have been a chance purchase. I suspect that someone had a trigger so that when the 9.9* millionth song was sold the next song sold would be the one that goes "Why'd ya have to make things so complicated" ...

Makes for a good press release, the first biggie after BuyMusic et al joined in the fray.

As a dot-commer I've seen the likes of this a few too many times to think that "Complicated" was a chance buy ...

[Mudbug]

Originally posted by jettredmont
3.5% overall users.

% in US? Call it 50%.

% with Jaguar? Call it 30% (20% was the target for January I believe)

By my count, that's about 0.52% of all computer users.

Even giving 75% installed base in the US and 50% of all users using Jaguar and iTunes4, you still end up with 1.3% ...

So, yes, 10M songs to at or less than one percent of the computer-using market is pretty darned neat.

Of course, IMHO, those Mac users without Jaguar are significantly less likely to use iTMS anyways, as are those hordes of Windows 95/98 users out there ... which significantly reduces the potential market size.

Which means, you'll never get to 100% of the installed home computers out there ... maybe closer to 50% with the ability to use the product and ~25% with the desire to use it.

but 25% of all the computers in the world is an astronomically HUGE number (can't even guess how big) - that's a lot of songs to download.

[vitaboy]

Hey, don't forget that approximately half of all sales on iTMS are album sales. A lot of albums have 16 or 18 tracks, making the cost per song just $0.50 or less. I myself have purchased albums to songs at a 70:30 ratio, so I am definitely paying less than $0.99 per song on average.

10 millions songs is still a great number, though. I doubt buymusic.com has even hit 1 million yet. It's probably not even close. :-P

Bottom line - since half of all sales on iTMS are album sales, the average price of a song is much less than $0.99.

Originally posted by nagromme
Didn't Apple say the store broke even very rapidly, faster than they planned? So they must be pocketing profit now.

Breakdown:

.99 cents per song

minus .65 to the record label (artist gets some)

minus Apple's costs (servers, labor, power, bandwidth, legal, etc. But note that the major work--encoding and uploading songs--is done by the labels, who must buy Macs for the purpose)

minus the cut taken by the credit card companies (per transaction--and Apple is smarter than buymusic.com, they combine all songs purchased in a short period into a single transaction)

[bobindashadows]

I'll state this, though somebody else has already.

You don't need 10.2 installed to use iTMS. I've done it on 10.1. The single feature requiring Jaguar is sharing via Rendezvous.

[Snowy_River]

Originally posted by Photorun
That seems like a lot of songs until you realize they'd all fit on 1,000 new iPods.

What... only 1000? Ah man...

:p

[Snowy_River]

Originally posted by AppleMatt
Anyway, of course everyone copies Apple. Microsoft may own 95% of the boat, but Apple's 5% is the rudder ;)

AppleMatt

Ooo!! Nice analogy! I'm going to have to remember that one...

[bobindashadows]

Originally posted by Snowy_River
Ooo!! Nice analogy! I'm going to have to remember that one...
Ooo!! Nice double post! ;) Seriously... you guys do know about the edit function, right? Just press the quote button, copy it, edit your own post... ah well, I'm preaching and I'm hungry. Not that helpful.

THough that is quite a nice analogy.

[jettredmont]

Originally posted by bobindashadows
I'll state this, though somebody else has already.

You don't need 10.2 installed to use iTMS. I've done it on 10.1. The single feature requiring Jaguar is sharing via Rendezvous.

You are correct.

However, I misspoke with 20-30% market penetration for Jaguar; that is Apple's stated (20% as of January and extrapolating on to date) market penetration of OS X overall, both 10.1 and 10.2 (and 10.0 although I can't imagine why anyone wouldn't have updated to 10.1!)

[evolu]

I have a feeling when ITMS arrives for windoze a new tech will be announced as well. Like a new 5 channel standard for music...

the music industry is faultering because it didn't embrace technology fast enough (too busy counting the cash).

A new technology will save it.

I remember there was talk of discreet channel support in the next release of QT...

[trose]

Bit off topic but...

Does anyone know if when the iTMS goes international, if everyone will get the same selection of tunes? For instance, would us in America get access to normaly Euro only music and vice-versa?

[NavyIntel007]

Originally posted by e-coli
Now they just need to work on their paltry Electronica section.

Amen, without Moonshine Records in there, there's no point in even having an Electronica section.

[NavyIntel007]

Originally posted by encro
The only thing paltry is Americans calling dance music electronica. The most rediculous word ever invented to frame the genre.

What do you propose the stores call it? There aren't exactly enough Drum and Base, Trance, Breakbeat, House... etc. albums to have a whole aisle.

It's Electronic because it's not from traditional instruments. Get over it.

[NavyIntel007]

Originally posted by Loopy
who's anti-American not me

I'm just a hippy kinda chap who writes Electronica for the modern ear, but when I go out live I make them Dance.

Dance and Electronica in the states is two different things. Dance is more like Pop and Disco. Electronic is mostly Club music. It is called Dance at most music stores. But is it so wrong to call Metal rock? To call Salsa latin?

[Loopy]

Originally posted by NavyIntel007
Dance and Electronica in the states is two different things. Dance is more like Pop and Disco. Electronic is mostly Club music. It is called Dance at most music stores. But is it so wrong to call Metal rock? To call Salsa latin?


thanks for the info, Dance in the UK is a broader term .... anything you can dance to. Electronica still has is roots in the 60s/70s Synth era.

[billyboy]

Originally posted by Loopy
thanks for the info, Dance in the UK is a broader term .... anything you can dance to. Electronica still has is roots in the 60s/70s Synth era.

"Anything you can dance to" is a bit of a broad church. I jigged a bit once to "I got a brand new combine harvester" by the Wurzels. Does that come under Dance? :D

[gandalf55]

fox25 in boston made a report on their 10 o'clock news about illegal music downloaders being pinched today... and among the morpheus and napster screens, they showed, quite predominantly Apple's iTunes Music Store. Umm... hey fox25... thats for LEGAL music procurement. i think you screwed up.

go to www.fox25.com and let them know about this screw up...

[vitaboy]

Probably not. The whole reason for the delay in launching iTMS for Europe or Canada are the regional rights issue. To even use iTMS, you need to have a credit card with a U.S. billing address.

Presumably, to use iTMS Europe, you'll need a card with a Euro address.

Unfortunately, as it is a huge inconvenience to users who want nothing better than to be able to scour the world for music (I personally listen to a lot of Japanese, Korean, and Chinese pop music along with the usual Western stuff), but that's how the music monopolies want it (just take a look at how Hollywood has inflicted the DVD regional encoding on the world).

Originally posted by trose
Bit off topic but...

Does anyone know if when the iTMS goes international, if everyone will get the same selection of tunes? For instance, would us in America get access to normaly Euro only music and vice-versa?

[encro]

Woah! I didn't mean to get you all going crazy :p

Well my point was the term electronica is a coined US media phrase. Check with the guys in detroit (Jeff Mills etc) or the guys on the miami bass/electro scene (Aux 88 etc) (; ask them if the would call it "electronica"?. In Australia and the UK (as NavyIntel007 mentiones) harder edged stuff is refered to as dance in general and your US version of dance is simply pop/top40 crud. It would have been better if the genre was called electronic on iTMS instead since we are not going to go silly and label all the sub-genres.

NavyIntel007: It's Electronic because it's not from traditional instruments. Get over it.

You are exactly right; it still isnt electronica though (Im picky about this, it makes me mad (obsessive?; well maybe)). Its electronic because its formed from synthetic waveforms!

Moonshine, City of Angels, Outpost, XL Recordings Botchit & Scarper, Fused & Bruised, React and Jivelectro etc all definately require permanent homes on iTMS.

some of my favorite artists:
ILS
The Globe
Jackyl & Hyde
überzone
Evil 9
Hardknox
Luke Slater (well only the Wireless album)
Timo Maas
False Prophets
Maxim (Keity Palmer)
No One Ever Really Dies (Nerd/Neptunes)
Scissorkicks (Hardest Compressing on drums!)

[daytona63]

I think it's curious how on the iPod page (http://www.apple.com/ipod) you can choose the color of the ad and Buy Now button. Either it's Apple being hip and cool, or it could be the precursor to different colored iPods. What do you think? Am I crazy?

[trose]

Oooh multi-colored iPods. Seems like a logical next step.

[ThomasJefferson]

So, what is your worst iTunes -ouch i really downloaded it - musical sin.

I downloaded a Shania Twain CD. Kept the girlfriend happy though ...

[AppleMatt]

Vanilla Ice - Ice Ice Baby.

I swear it was for a joke. It's gone now.

Honest!

AppleMatt

[crees!]

I like how the kerning is off on the blue ipod ad compared to the rest of them. Someone didn't pay close attention to detail.

[pulse_divider]

Hi all, I'm new here but wanted to add my $.02...
This might be a bit of a conspiracy theory, but I think that the record labels are paying for a large portion of these downloads in order to validate a virtual distribution system.
Anyone remember The Box, the music/hiphop pay-per-view video channel? Record labels would order their own videos in order to create an illusion of popularity, thus creating a demand for their product. It was called "jacking the box". Sounds fishy, but it worked and actually made a lot of people a lot of money.
If one actually looks at the number of users capable of using the iTunes store versus the number of songs purchased, one comes to the conclusion that there is something seriously out of whack. Considering that record labels are rapidly losing any sort of purpose or usefulness with the advent of cheap home studios and virtual (and potentially free) distribution, $10 million dollars seems to be a small bet to hedge against the collapse of the industry.
I have to submit the disclaimer that I think record labels are a bunch of money grubbing evil bastards, so take my theory with a grain of salt. I do, however, think it is entirely likely and I haven't heard anyone talk about this yet so I figured I'd throw it out for your amusement.

[crees!]

Originally posted by pulse_divider
I think record labels are a bunch of money grubbing evil bastards...

That's certainly the truth.

[Snowy_River]

Originally posted by pulse_divider
Hi all, I'm new here but wanted to add my $.02...
This might be a bit of a conspiracy theory, but I think that the record labels are paying for a large portion of these downloads in order to validate a virtual distribution system...

The only problem with this theory is that Apple had to put a lot of pressure on the industry to get them to agree to the current system. No. I don't see this as an RIAA conspiracy. They haven't been supportive enough of the "virtual distribution system" for them to be trying to push it like that...

All, of course, IMHO...

[jbembe]

Kylie Minogues' "Can't Get You Out of My Head"

I got the Flaming Lips cover from the Fight Test EP and decided I should get the original

...boy your all I ever think about...