Random Musings
Monday, March 15, 2004
 
The Register: "Apple's calculated annual run rate of 130 million songs a year equates to $43.9m of revenue per annum. Napster is expected to announce revenues of $9.1m for its first five months of selling downloads.

Of course, how much of that ends up on Apple's bottom line is another matter. In any case, that figure has to be put alongside the company's annual revenue of $6.2bn (FY2003) selling computers and associate software, services and peripherals. ITMS might be a high profile activity, but it's certainly not high revenue, relatively speaking. "


It may not be high revenue but I suspect it's high margin. It gets to piggy-back on the very successful iPod marketing and sales and I have to wonder what it really costs them to make those songs available. They pocket $.33 per song, that sounds pretty profitable to me.

-B-

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