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Apple Losing Money on New Movie Sales?
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subject of movies
not to offend those who like todays movies but i am totally disappointed with the movies offered....i happen to totally enjoy so many movies of "old" many of those made in the Charleton Heston era and those made in the 20's and 30's i guess they would never think of offering these.
not to offend those who like todays movies but i am totally disappointed with the movies offered....i happen to totally enjoy so many movies of "old" many of those made in the Charleton Heston era and those made in the 20's and 30's i guess they would never think of offering these.
As if this will even remotely hit the billions they have in the bank. the profits that they make off the iPhone, iPod, and Macs easily negate that cost and then some.
Almost Certainly NOT True
Odds are that Apple is not losing money here. They are probably making a reasonable profit for a retailer, but that is much less than what they get from their mainline business. Amazon made about 3.5% net profit last year. In the mid 90's, Tower Records made about the same on $1 Billion in sales, and they had to support 179 retail locations. It's almost impossible that iTunes Store, with far less overhead, doesn't outperform the Tower Records of old.
A lot of this depends on how Apple allocates the cost of advertising - does iTunes store absorb any of big TV budget for those iPod ads?
Regardless, I think that the real point that Apple was making is that they would not invest the money in a much lower margin business if it did not drive hardware sales.
Odds are that Apple is not losing money here. They are probably making a reasonable profit for a retailer, but that is much less than what they get from their mainline business. Amazon made about 3.5% net profit last year. In the mid 90's, Tower Records made about the same on $1 Billion in sales, and they had to support 179 retail locations. It's almost impossible that iTunes Store, with far less overhead, doesn't outperform the Tower Records of old.
A lot of this depends on how Apple allocates the cost of advertising - does iTunes store absorb any of big TV budget for those iPod ads?
Regardless, I think that the real point that Apple was making is that they would not invest the money in a much lower margin business if it did not drive hardware sales.
The technology and quality will get better over time. I bought CD, DVD and LD when they all first came out and the quality of each improved over time as the mastering houses became more familiar with the technology and developed new tweaks and processes to improve the final product.
The average iTunes movie you buy a year or two from now will most likely look and sound better then the one you buy today.
Right now it is, but digital movies are a work in progress. It probably costs Apple the same no matter what the quality is and it wouldn't be a very good idea for them to raise the prices later. The current compression technology for digital videos isn't all that good, but high quality standard videos would result in 5GB standard movies and some ungodly size for high def. That's alright if you have a high capacity desktop hard drive but completely impractical for an iPod or AppleTV.
i will never rent a movie online as long as they doesnt drop the 4dollar mark.
15 dollar is way 2much... what if u wanna watch 2-3 movies on the weekend with some friends? (thats quite common)
spending 45 dollars wether u could get it for 6? the gap is huge.
as well i prefer going to the cinema for that price.
and i guess u people in the us should watch ur money more closely... the dollar is worth nothin soon and u will gladly walk the extra route to save some pennies.
15 dollar is way 2much... what if u wanna watch 2-3 movies on the weekend with some friends? (thats quite common)
spending 45 dollars wether u could get it for 6? the gap is huge.
as well i prefer going to the cinema for that price.
and i guess u people in the us should watch ur money more closely... the dollar is worth nothin soon and u will gladly walk the extra route to save some pennies.
Just so you know you can rent movies for $2/$3/$4. What this thread is about is apple Selling Movies Not Renting Movies so this post is well pointless