Category Archives: business

profitability of iTMS

Per Coolfer:

In the New York Times’ Bits blog, Saul Hansell makes a case that iTunes may be Apple’s best business segment.

Last year, PacificCrest analyst Andy Hargreaves estimated iTunes’ operating margin to be 10% and possibly as high as 15% (it would be better today due to the increases in volume). Earlier this year, Billboard’s [...]

publishing

Per Reuters, Universal cements music publishing lead:

Two interesting points in this article.

One, UMG has grown their publishing business very substantially.

Universal Music’s publishing division has overtaken EMI as the world’s leading major music publisher, according to market research on Monday.

Music & Copyright (M&C), which is published by Informa said Universal’s market share among [...]

business aspects of Cartoon Network vs. Cablevision

Judge OKs Tivo-In-The-Clouds: Hosted DVR services — which allow cable companies to create “virtual” Tivos that live in a datacenter somewhere, not on a hard drive in your living room — are legally sound. Specifically, network-based DVRs “would not directly infringe plaintiffs’ exclusive rights to reproduce and publicly perform their copyrighted works,” says the [...]

Indies were warm in the first place

Some indies are selling more records than ever while the majors limp along:

Major labels struggle to keep platinum sellers (acts that sell a million units) from backsliding to gold (500,000 units) or worse. But some smaller labels—among them Sub Pop, Merge, and Matador—have hit a pocket of relative prosperity, with many of their top stars [...]

upsales

Elemental Consulting on pay-per-download songs:

If Amazon has a hard time making money on music priced a little below iTunes standard pricing, how can downloads priced at a fraction of the cost be profitable for indie labels and musicians?

Applying the concept of loss leaders … it logically requires that the download is then just the gateway [...]

Piracy is dead

Unauthorized distribution has already been factored into the music economy. Valuations have been adjusted. The economic impact of filesharing is complete.

When Napster happened, it was a surprise to the music industry. The techies saw it coming but the music people didn’t. This hurt many people with investments in the music business. [...]

Myspace music / Amazon deal

In the upcoming Myspace Music launch, Amazon is likely to be the provider for paid downloads. This is per TechCrunch:

The as-yet unlaunched MySpace Music will likely partner with Amazon to handle all music ecommerce transactions, we’ve heard from multiple sources. Apple and Rhapsody are also bidding for the business, however, and one source says [...]

hybrid label+blog economics

After I thought more about RCRD LBL’s economics, I came to a couple conclusions.

I don’t think they’re selling their spots at the listed rates. I think the ads they are selling might be part of package deals with other sites that I don’t know about, because they can’t deliver enough traffic for major brands [...]

RCRD LBL economics

RCRD LBL is a music blog. Or a label. Or a webcaster. Hard to say exactly, but those are the times we live in.

Here’s how they explain themselves to advertisers:

Launched in November of 2007, RCRD LBL is an online record label releasing exclusive and completely free music from emerging and established [...]

eMusic economics

hypebot does the numbers on eMusic:

eMusic collects 30 or 40 cents per track downloaded. Because some subscribers don’t download their monthly allotment, eMusic pays 30-35 cents per download. From that 35 cents most labels pay 10-20% to a distributor. Using 15%, that means the distributor pays that label 29.75 cents per track. The current statutory [...]