With iTunes, Apple implemented its own revenue-sharing model: Apple would get 30 percent upfront, which is actually a smaller cut than the 42 percent that went to retail stores and distributors under the compact disc model. Meanwhile, the songwriter gets $0.09 per song, while the payment to the performing artist is negotiated between the label and artist (15-to-20 percent is still an industry standard).
How come label execs hate iTunes so much?
Because after iTunes, no one would pay $17 for an album ever again. Not only that, the emphasis on singles over albums hurt record labels’ bottom line. While the impact of Napster on CD sales was negligible, each year since iTunes premiered the industry has been stuck in a freefall, with sales revenue from albums and singles, both digital and non-digital, dropping from $11.2 billion in 2003 to $5.4 billion in 2012.
How come label execs hate iTunes so much?
Because after iTunes, no one would pay $17 for an album ever again. Not only that, the emphasis on singles over albums hurt record labels’ bottom line. While the impact of Napster on CD sales was negligible, each year since iTunes premiered the industry has been stuck in a freefall, with sales revenue from albums and singles, both digital and non-digital, dropping from $11.2 billion in 2003 to $5.4 billion in 2012.
