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

[Roger Snyder]

On 5/1/03 18:24, "b" wrote:

>> n 5/1/03 4:46, "Trevor J. Hutley" wrote:
>> 
>>>  My feeling - before any announcement from Apple - was that somewhere
>>>  between ¢10 and ¢25
>> 
>>     I understand Apple gets about 1/4 of the total price, (meaning $.75 goes
>> elsewhere). This would eliminate 10 to 25 cents a piece.
>> 
>>     An just think, why would music companies allow there songs to be sold do
>> cheap. $1.20 an album? Except for the productions costs, which are minimal,
>> they would be making factor of 10 less per CD.
>> 
>>     And what would an artist make per CD? $.005 per CD on a million sales is
>> only $5000. Not a lot for a million seller.
> 
> @ 75 cents to the music co, and with a 6.5% royalty to the artist
> (more or less) = 4.5 to 5.5 cents per track X a million? 45 to 55
> thousand per single. But, the reality is that most artists [save for
> all but the most established big sellers] derive the bulk of their
> income from touring and merchandise sales. Still, an extra 50 grand
> here, 50 grand there, pretty soon, it adds up.
> 
> ~flipper

    I was figuring on the $.10 person, $1.20 per album (12 songs) example.
Using 6.5% (which I don't know if they could get that given costs) that
gives an artist $78,000 per million sales per album. Doesn't seem like a lot
(and must be a lot less than they are used to).

-- Roger