NBC tried to sell it's own online content for something like $4.99 per episode after first parting ways with Apple/iTunes. Looks like NBC's plan didn't work out so well.
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Despite NBC's Return, Apple and NBC Still Disputing Claims
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I always saw it the other way around.. I thought Apple devices existed to sell iTunes content. I always imagined they make most of their money out of iTunes nowadays, although please correct me if I'm wrong.
Don't forget the credit card companies' cut too. If Apple hasn't worked out a special deal, they're probably making about $0.40 on that $0.99 or $1.99 purchase.
Uh, apple did lose... wtf, did nobody else realize that all NBC wanted was to package some titles and reduce the price on others?
That was my understanding from the beginning. I guess Apple gave in, finally.
They package titles to force users to buy more than they want (ie, spend more money).. this may have given rise to Apple's half-truth "they wanted to double prices!!" Yeah, they wanted prices to be twice as high on package deals than single purchases, but they also wanted them to include more. That's like a car dealer switching from honda to corvette and someone complaining "HEY! THEY DOUBLED PRICES" (that's right, yet another car analogy... muaha).
What the hell kind of excuse is that? "oh, it's our standard price"... uh was this the same Apple that said they "never told anyone they wouldn't allow lower prices" ? I'm absolutely 100% positive studios would love selling some of their HD content for less than $3. People like HD better, and it can boost demand on some of these crappy shows. People watch HD even when the programming sucks, just because the picture is good (<- Proven fact)
That was my understanding from the beginning. I guess Apple gave in, finally.
They package titles to force users to buy more than they want (ie, spend more money).. this may have given rise to Apple's half-truth "they wanted to double prices!!" Yeah, they wanted prices to be twice as high on package deals than single purchases, but they also wanted them to include more. That's like a car dealer switching from honda to corvette and someone complaining "HEY! THEY DOUBLED PRICES" (that's right, yet another car analogy... muaha).
What the hell kind of excuse is that? "oh, it's our standard price"... uh was this the same Apple that said they "never told anyone they wouldn't allow lower prices" ? I'm absolutely 100% positive studios would love selling some of their HD content for less than $3. People like HD better, and it can boost demand on some of these crappy shows. People watch HD even when the programming sucks, just because the picture is good (<- Proven fact)
Those were NBC's claims from the beginning. Personally, I was somewhat skeptical, especially given that they were trying to develop their own content source at the time.
If that wasn't the case, why didn't Apple just publicly say "Okay, fine, we'll accept the NBC deal for packages for some and lower prices on others"
If NBC wasn't really after that, then they would've been screwed--they would've had to accept or admit that they wanted more than what they claimed publicly. Instead, Apple lied and said that NBC wanted to universally double prices (or implied that, at least). Of course that doesn't even make sense.
You don't see music studios able to sell old songs for 49 cents on itunes.
Apple has a long history with its fight with the music studios on the 99 cent single pricing. History is on NBC's side of the claim.
They could have said that, but if Apple was correctly representing the state of affairs, no such deal was ever offered; in that case, there's nothing to publicly say that they accept.
I don't see them asking for cuts, either, just increases.
you are wrong, but its a common misconception. itunes store is there only to support the sales of ipods. back when it first came out, this was the plan. thats why, just like the app store, the charge minimal prices, with most of the profits going to the music companies, the rest to run itunes.
when you here that itunes have sold $X million worth in songs, they are usually stating revenue, not profit. after all expenses, minus money that goes to the music companies, it is unclear/unannounced how much they really make, if anything. (if anyone has that info, it would be great)
Music studios have been asking for cheaper pricing for older songs for a long time.
http://www.forbes.com/2005/11/16/apple-emi-itunes-cx_pak_1116autofacescan08.html
Ah. I was only aware of the other half of that equation.
I do wonder how many major labels would avail themselves of that without the ability to charge more for other songs, though.
I don't think anyone believes NBC on this, particularly when the new deal doesn't include any of the things NBC was asking for when they left.
Ah. I was only aware of the other half of that equation.
A lot.
Higher prices don't always mean higher profit. If you make 50% profit off each song, and dropping the price 20% can increase sales 30%, you make more profit at the lower price.
Actually, in this case, dropping the price even as little as 10% can have a huge increase in sales. Therefore, I don't see Apple's motive for keeping prices static--in some cases, it's better for customer and reseller to lower prices. I'm glad NBC forced them to rethink this policy.
And yet they're still trying to MSRP CDs at $15 or $18 apiece, when they could drop that to $10 or less and a) still make more profit per unit than they were a decade ago, and b) probably increase their net income in the process from increased sales.
No, record companies seem to be concerned with making the most amount of money per unit possible, with little or no concern for increasing their overall profit.
A company has no concern for overall profit....
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Well, uh... I have no idea what to say here. You think you know more about running a business than a multi-million dollar staff of experienced, educated people... are you like 16 or something?