Before making snide remarks about Apple making a million dollars the first week, people should look at the big picture. First, that was the first week, and I know I bought more songs the first week than I will in the next three months because I got a bunch of songs I'd always wanted but wasn't willing to buy the whole CD.
Second, the iTunes Music Store isn't something Apple whipped up in weekend in someone's garage. There are multiple dimensions to setting something like this up, and none of it comes cheap. I wouldn't be a bit surprised if that first million $$$ didn't even cover the cost of their attorneys' negotiations with those five music companies. And I doubt Akamai is providing all those server farms for free either.
Are they making a profit? I would assume so, but I can't see their books so I don't know. If they are, that's fine because that's what businesses are supposed to do. But did that million dollars represent a million dollar profit? Not even close. For all I know, the music store may not even become seriously profitable until they bring it to Windows.
Apple iTunes
Jukebox, music store, listening library.
Version: 8.0.2
The whole picture
Feedback Type: Commentary
Contributed by: Laurence Harris Friday, June 13 2003 @ 10:58 PM PDT
Product Platform: MacOSX
Used Product For: One Month
Recommend Product: YES
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