I appreciate the hardware/infrastructure argument but wasn't that already largely in place? Isn't the same hardware/infrastructure hosting and delivering the entire iTunes library, iCloud, etc already in place? Wasn't the same IT personnel managing all that hardware and software already in place running servers for iTunes, iCloud and so on. Could anyone point me to any reference anywhere on the Internet that conclusively shows that Apple had to make a HUGE investment in new servers and infrastructure and personnel to be able to support this new Apple Music service? Last I heard (which may not be true), Apple laid off a bunch of the Beats staff as redundant because they already had people with duplicate skillsets in place:
http://www.businessinsider.com/apple-is-starting-to-lay-off-beats-employees-2014-7
As you say, "Heck all these songs are on iTunes", so it seems that Apple doesn't have to buy a bunch of new server farms and spend a bundle on new infrastructure beyond what is probably mostly already in place.
Relative to worrying about Apple's electric bill, isn't Apple very, VERY green when it comes to electricity usage? Have we not seen multiple stories about how Apple's server farms are running mostly (entirely?) on green sources such as solar?
http://thenextweb.com/apple/2012/05...rth-carolina-data-center-on-renewable-energy/
And even if such a cite exists that shows this massive burden of new costs Apple is having to endure to pay for the backbone of Apple Music, Apple will write the whole cost off, reducing their tax liability on the profits they make from everything else they sell... just as they'll write the free trial costs off as promotional expense. The savings in not making those expenses- if of any real, tangible size- would be inconsequential to Apple's total revenues & profits for the year.
I never said the 28% was pure profit- just that it's probably the biggest slice of the whole pie. I can't prove that but it seems like a good guess for anyone who thinks it through. How many major labels are there? Isn't that 4 or 5? IMO, it seems reasonable to assume that those 4 or 5 would take most of the 72%. 72% / 4 = 18%. Maybe one of them is bigger than the other 3 or 4, so maybe one of them MIGHT get up to Apple's 28%. Maybe?
My point is richest (Apple), rich (labels & publishers) and poor (artists not named Swift, Perry, Bieber and a relatively small group of others who really could give their music away for 3 months and be fine) was to the point of Apple taking on all of the risk (for Apple's new service) implying that the artists should share in those risks as if each party is equal partners in this endeavor. They are not. If it is successful, Apple will make FAR more than any of the other players, the labels & publishers will take smaller slices out of the 72% and these "greedy" artists will get the scraps... for years and years to come.
In entrepreneurship, there is a saying: "
to he who takes the bulk of the risk, goes the bulk of the rewards." As this is now unfolding, that's exactly what is happening here. If we actually expected the artists to fully share in the risks, where's their 28% cut right off the top?