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Originally Posted by redvelvetstudios  Jason - your data is wrong. Itunes deals are pretty transparent. they take 30% off the top.
So on a 9.99 album, they pay $7.00 to the label.
on a .99 song, they pay .70 to the label.
it's pretty straight forward. if the label has to go through a middle man, to get to itunes than maybe that's an additional fee... but Itunes is only taking 30%.
The label pays the publishers directly.
The label pays the artist royalties.
If someone is being told itunes is taking 50%, someone is being lied too.
Check out tune core - I think they pay 100% of what Itunes pays out, after an set-up charge and an annual flat fee.
EDIT: Itunes/Apple for their 30% has substantial costs of network servers, staff, etc. If you can run the same business on a 3% margin - people would love you! Get on that! |
Yes you are correct. Apple/iTunes do take 30%. I would love to see a service running on 3% too though lol!
Most digital distributors take a annual set-up fee and digital music stores take a percentage of the each sale.... why not merge the 2 businesses and only charge for 1 of these? I don't think there is much technical differences between an online digital music store and an online digital distribution service.