What is all the bullshit this week that Apple is about to shutdown iTunes? What a load of rubbish.
Apple is threatening to shutdown its iTunes store if it is forced to play for to rights holders for selling music, the reports go.The price increase would be around 6c per track, making the royalty payment 15c instead of the current 9c.
iTunes Vice-President Eddy Cue this statement in a report to Congress in 2007, "If iTunes Store (iTS) were forced to absorb any increase in the mechanical royalty rates, the result would be to significantly increase the likelihood of the store operating at a financial loss - which is no alternative at all”.
"Apple has repeatedly made clear that it is in this business to make money, and would most likely not continue to operate iTS if it were no longer possible to do so profitably."
Cue’s comments were taken out of context and reported by the BBC last week.
But let’s get a few facts right. Of course iTunes is about making money. It is about making money for Apple and Apple is about making money by selling iPods. iTunes has never been about selling music. It has only ever been about selling iPods.
There is no way Apple would shutdown iTunes over 6c extra a track. That is completely ludicrous. They have turned over more than $5 billion is the last 3 years from iTunes. They aren’t going to give that sort of cash up in a hurry.
iTunes priority is to shift iPods out of stores, not music down pipes. Apple has perfected the Microsoft model of selling flawed products that continually need to be upgraded and they can only do that with their hardware.
How many new iPod models have been released in the last three years? Why is it that each time a new iPod is released that it holds more for a lower price?
Look at the current model range. They are trying to get you to buy new ones because they have changed color. What is the business model for iPod based on? Barbie dolls?
Why is it that the battery life in iPods is so bad and that with continued use, the product is can’t get through a day, so you need to buy another one?
Does anyone really think that Apple is going to give up that business model over 6c a track? Of course it isn’t. iTunes can go forever as a lost leader for Apple because Apple doesn’t care about selling music. They care about selling iPods.
Who are the real music stores online? I mean the stores that sell music for music, not the ones who sell music because they want you tied to their phone or want you tied to their internet service?
Let me know, please, I can’t think of one.
