| | Allen, thanks. Ever wonder where the 99c for an iTune song goes? The artist gets 8.5c /download. I pulled this from an article in todays Wall Street Journal:
[snip]
"Consider: Apple Computer Inc.'s iTunes Web-based music store has already sold more than 500 million songs since it was launched in 2003, and song sales now account for a big chunk of Apple's revenue.
And while the Internet has in one sense taken consumers back to the days of the 45-rpm record, buying just one song at a time, it has also opened up other potential revenue streams that can be turned into bonds. For example, ring tones -- snippets of original recordings that announce an incoming call on a cellphone -- "are growing exponentially" as a royalty stream, says Mark Friesen, founder of market-research firm Consect, whose assets were recently bought by Nielsen Entertainment. He expects sales to more than double this year in the U.S. to $700 million; last year, global sales were about $4 billion.
Meanwhile, the price competition already affecting the music-download business may squeeze profit margins for record companies, but it doesn't cut the artists' payday: Every single downloaded to burn a new CD, "ring" a cellphone or serve as fodder for spirited karaoke fans by law pays the musician about 8.5 U.S. cents. These so-called mechanical royalties are similarly protected in much of the rest of the world."
Bankers Hope
For a Reprise
Of 'Bowie Bonds'
By KAREN RICHARDSON
Staff Reporter of THE WALL STREET JOURNAL
August 23, 2005; Page C1 |
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