Friday, 6 October 2006

RIAA kee wholesale prices secret

It's long been rumored that iTunes' profit margi are razor thin, but it's never been revealed exactly how much A le takes home from each track sold at the iTunes store. Ars Technica has a post up discu ing a new lawsuit that is attempting to get the RIAA to reveal their wholesale pricing, which is generally believed to be about seventy cents per track. Of particular interest in this article is the discu ion of clauses in distribution contracts that guarantee the best po ible rates to the record industry for track sales. I've often heard that the secret to iTunes' succe is volume, volume, volume, but here's more evidence that it i 't the quantity of iTunes sales but the number of iPods sold that really leads to A le's bottom line.

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