[Ti] [OT] Applemusic.com - is the price right?

[Steve Wozniak]

At 3:23 AM -0400 2003.04.30, b wrote:

>The Big 6 or 5 have seen an 11% drop in sales since the height of the
>Napster boom, yet their actual investment has also dropped over that
>period, and the gross number of titles released has also dropped...by
>30%.... Simple math or book keeping tells me that a 30% drop in
>investment and a concurrent 10% drop in revenue yields a gain in
>Return on Investment of nearly 25%....

When business is off, companies lower their expenditures. It's easy to come to a realization that something like 80% of the revenues come from 20% of the products, or some other such mix. The top products are not the ones dropped to save money, it's the ones that barely matter or that are unprofitable. So the argument that revenue drops are due to cutbacks in an industry with thousands of products sounds good but doesn't fly.
-- 

Regards,

Steve  (is tv wake zone?)