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TheConfuzed1 wrote:

thugmoni wrote:

I remember hearing Apple gets 23 cents of the 99 cents. So now

500,000,000 songs (that is 500 million for people not good with math)

x

$.23

=

$115,000,000 dollars (That is one hundred fifteen million dollars for those not good with math)

That is operating revenue, not profit (there is difference)

Carry on.

Actually, no.  People have downloaded 500,000,000 songs, but Apple has not sold that many.  Many of those downloads were free.

I assume you mean the Pepsi thing right?  As I remember, at least the first pepsi promotion was just that, a Pepsi promotion.  Pepsi actually paid for the songs.  Though I never did find out if they paid for just the ones redeemed or the paid for all up front.  I don't know about the second one though.  That was in a article  I read at either wired or cnn. I won't vouch for it being 100% accurate.

What ever the case, even though the songs were given away, someone paid for them, Apple or Pepsi or both.

Czachorski wrote:

Ok, then 20 years.  The point is still the same.  Or are you saying that you don't think that media-less based distribution of content will make media obsolete, or that Apple won't be in a position to capitalize on it any longer when it actually happens, or both?

To say that there is not big money to be made in it denies the very big-business of it that the record companies have right now.  Why wouldn't there be big money to be made in it in the future?

I wouldn't even begin to speculate twenty years into the future.  That's a century in tech years.  I doubt many people twenty years ago would have envisioned what we have today.

It is entirely possible that internet distribution will become dominant.  But there will likely be a market, however small, for physical media for some time.  As for Apple, they are going to have to work very hard to maintain their position in the marketplace.

Scott wrote:

TheConfuzed1 wrote:

thugmoni wrote:

I remember hearing Apple gets 23 cents of the 99 cents. So now

500,000,000 songs (that is 500 million for people not good with math)

x

$.23

=

$115,000,000 dollars (That is one hundred fifteen million dollars for those not good with math)

That is operating revenue, not profit (there is difference)

Carry on.

Actually, no.  People have downloaded 500,000,000 songs, but Apple has not sold that many.  Many of those downloads were free.

I assume you mean the Pepsi thing right?  As I remember, at least the first pepsi promotion was just that, a Pepsi promotion.  Pepsi actually paid for the songs.  Though I never did find out if they paid for just the ones redeemed or the paid for all up front.  I don't know about the second one though.  That was in a article  I read at either wired or cnn. I won't vouch for it being 100% accurate.

What ever the case, even though the songs were given away, someone paid for them, Apple or Pepsi or both.

The $115 million figure for operating revenue is probably off due to the free downloads though. Those songs which Apple pays for do not directly generate revenue and actually are part of the operating expenses reducing the net profit.
Songs bought by Pepsi or 7-11 may actually produce altered revenue and net profits as well. We don't know what sort of deal those companies were able to broker for themselves and if they did indeed purchase every song being offered in their promotion (even at a reduced cost) Apple theoretically stood to make more off those songs that weren't given away in those promotions.

Those are the ones Apple sponsors (operating expense).