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Music Businesses Media Apple

Windows iTunes Sells A Million Songs In 3.5 Days 1007

ajkst1 writes "According to an Apple press release, the iTunes Music Store has sold 1 million songs since its release on the Windows platform on October 16. Also of note is the 1 million downloads of the iTunes music program itself. When the iTMS was first released, it took a full week to sell a million songs. The store has now had 14 million songs purchased and downloaded since its original launch in April."
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Windows iTunes Sells A Million Songs In 3.5 Days

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  • go apple! (Score:5, Interesting)

    by minus_273 ( 174041 ) <{aaaaa} {at} {SPAM.yahoo.com}> on Monday October 20, 2003 @04:29PM (#7263158) Journal
    looking at the napster site i can see why it is so important that itunes be the standard. (check out the partners bit)
  • sales figures (Score:2, Interesting)

    by agent2 ( 628468 ) on Monday October 20, 2003 @04:32PM (#7263187) Homepage
    From my understanding, because at macrumors.com, some people were a little confused, is that the Windows version of iTunes had 1 million downloads and as a result iTMS, had sold 1 million songs in 3.5 days. They wern't specifying specifically that Windows users downloaded 1 million songs.
  • Re:Run DMC (Score:2, Interesting)

    by MoonFog ( 586818 ) on Monday October 20, 2003 @04:34PM (#7263224)
    Yeah, according to Microsoft's David Fester iTunes is rather limited in it's music selection. From this [theregister.co.uk] article:
    Unless Apple decides to make radical changes to their service model, a Windows-based version of iTunes will still remain a closed system, where iPod owners cannot access content from other services. Additionally, users of iTunes are limited to music from Apple's Music Store. As I mentioned earlier, this is a drawback for Windows users, who expect choice in music services, choice in devices, and choice in music from a wide-variety of music services to burn to a CD or put on a portable device," said Fester. David, that is.
    So, Windows users expect choice in music etc more than others ?
  • by Sheetrock ( 152993 ) on Monday October 20, 2003 @04:35PM (#7263238) Homepage Journal
    The interface kind of sucks. Why they chose to redefine 'Maximize' is beyond me, and you can't get it to fill the window.

    I don't think saving $2 on an album is that great of a bargain when the compression is lossy and you factor in the cost of disc and jewel case.

    Quicktime and iTunesHelper are both loaded at computer startup and happily sit in the background, guzzling memory (iTunesHelper is 3 MB, for example). Does this crap really need to run when I'm not using it?

    Arbitrary restrictions on burning a playlist (10 burns, then you have to mess with it to burn more) seems a bit silly.

    That said, I do like the store browsing, and getting 30sec of good quality samples on the music is pretty nice, although I'd prefer full song at low quality (might be a problem with Audiobooks, but they've proven they can differentiate the two.)

    At this point, I'm going to stick with buying used and ripping the stuff into Windows Media Player. The interface is better, it doesn't automatically suck memory when I'm not using it, and the visualization runs at more than 3fps.

  • by binaryDigit ( 557647 ) on Monday October 20, 2003 @04:35PM (#7263242)
    Apple's innovative and patent-pending online "Allowance" feature which allows parents to automatically deposit funds into their kids' iTunes Music Store account every month;

    Yet another worthless, obvious patent. Sigh.
  • Praise be to Apple and Steve Jobs for figuring out that there is a better way to distribute music in this day and age.

    Once I get my finances situated, I'm off to download iTunes and get started. It's about time that someone realized that yes, there is in fact a good online music business model.

    Now, how to go about getting them to sell my band's music on the store? Since we don't have a label, the split of sales would be a bit different, I'd assume there would have to be a different deal structure worked out. Does anyone else here on /. have an indie band, and have you tried to deal with iTunes? Any experiences/comments would be most welcome...
  • looks good so far... (Score:2, Interesting)

    by GreatTeacherMusashi ( 717399 ) <aknight@[ ]edu ['vt.' in gap]> on Monday October 20, 2003 @04:36PM (#7263259) Homepage Journal
    Well for only a few days that ain't half-bad, I really love the system they've got going in the iTunes Music store, I dun think Napster is really gonna use it's "huge market potential because of brand recognition" as much as ppl think, more like "wth, you have to PAY??", unless napster pulls some very nice stuff with their client, iTunes should stay ahead of the game(hopefully).
    only wish they would break the country boundary (yes I know that's not easy)
  • Busy. (Score:3, Interesting)

    by villain170 ( 664238 ) on Monday October 20, 2003 @04:36PM (#7263265) Homepage
    Is something wrong with mine? It keeps telling me it can't connect to the store because it is busy.
  • by indros13 ( 531405 ) * on Monday October 20, 2003 @04:36PM (#7263268) Homepage Journal
    should prove the point that music piracy and falling CD sales were indicative of consumer demand for a more flexible model. I'd bet that revenues for iTunes and other online services will continue to rise and CD sales will continue to fall.

  • by Nutcase ( 86887 ) on Monday October 20, 2003 @04:38PM (#7263298) Homepage Journal
    I dont think I will use the iTMS for full albums. I am still to attached to tangible cd's and such. They are just nice. But it has proven PERFECT for one hit wonders and such....

    I used to rip all my cd's and then go on gnutella to grab the few tracks that I don't own but listen to all the time, or single songs from artists who I generally dislike (i.e. Lose Yourself by Eminem) - now I just buy those songs for 99cents from iTMS, avoiding the "must buy a full cd" syndrome that always stopped me before, and suddenly I own every song on my computer for just a few bucks.

    In fact, the iTMS taught me something that I hopey the RIAA will learn one of these days: Good Karma is fun.
  • by bombadillo ( 706765 ) on Monday October 20, 2003 @04:39PM (#7263312)
    So whats your point? There are certain stores that sell an item at almost no profit just to get customers in the door to buy other things. In the case of apple. It means that millions of songs being put out in the AAC format. Combine this with the iPod and iTunes and people in the windows world are using apple products. Makes it that much eaiser to lure people over to apple.
  • by jimmer63 ( 651486 ) on Monday October 20, 2003 @04:41PM (#7263341)
    If you look at BullyMag's estimates for profits of iTunes: 65 cents in royalty payments. Also bandwidth, media delivery, salaries, credit card fees etc etc is another 10 cents per song. This leaves about 24 cents per song. 24 cents x 1 million downloads = $240,000. That's just from the windows downloads. If you calculate all 14 million downloads, that's $3.36 million.
  • by Anonymous Coward on Monday October 20, 2003 @04:43PM (#7263369)
    Apple can maintain its Music Store on break even until hell freezes over, because for Apple this is just an extra.

    Dude, your remark should make Roxio, Real, and Buy.com shake with fear. They are the ones with the dot-com era business plan.

    For Apple, iTunes Win is merely trojan for three Apple-invented technologies: Quicktime, Rendesvouz (actually and open source standard), and Fair Play.

    Look at this as an innovative marketing campaign. It is clear that Apple is not getting rich out of Music sales (at least not until they reach 1 billion in annual sales).
  • by smack.addict ( 116174 ) on Monday October 20, 2003 @04:43PM (#7263371)
    Actually, they have sold more than a million songs. And many of the early downloads were probably Mac users like myself putting it on a windows laptop just to use Rendezevous. I would not end up buying from that Windows machine, ever.
  • burning to cd (Score:2, Interesting)

    by seelevarcuzzo ( 625460 ) <seeleNO@SPAMobso1337.org> on Monday October 20, 2003 @04:47PM (#7263419) Homepage
    has anyone had problems burning to cd (audio, data, mixed) in windows? i didnt realize this until after i bought an ablum, that itunes uses its own software to burn cds instead of users choice (boohoo i want nero). it initializes the cd and buffers the songs to burn and then exits with a '4000' error.
  • Re:go apple! (Score:5, Interesting)

    by Frymaster ( 171343 ) on Monday October 20, 2003 @04:50PM (#7263458) Homepage Journal
    Yes, perhaps it's more important to be partners with major record labels than with tech companies when it comes to selling music.

    itms offers indie labels... does a rather good job too - at least according to cd baby. source is here:
    http://www.insanely-great.com/news.php?id=2221 [insanely-great.com]

  • by angle_slam ( 623817 ) on Monday October 20, 2003 @04:54PM (#7263506)
    What possible advantage is there to this crippleware?

    Easy to access previews. A friend of mine recommended a band to me. Since I just downloaded iTunes, I pulled up there album and listen to a few songs. It's only 30 seconds, but it was quicker than finding a full song on Kazaa and hoping that the song on Kazaa is properly labeled.

    Not only that but this propreitary service only lets you play your songs on an Ipod, no third party players supported.

    You can also burn to CD, enabling you to use any Discman or other portable CD player.

  • grrr! (Score:2, Interesting)

    by SweetAndSourJesus ( 555410 ) <JesusAndTheRobot@yahoo . c om> on Monday October 20, 2003 @04:58PM (#7263558)
    They don't support my extremely obscure operating system!

    Yes, folks, Linux on the desktop is obscure.
  • by eclectro ( 227083 ) on Monday October 20, 2003 @04:58PM (#7263561)
    It's commonly known that apple makes about $.10 per song download. Apple's profits are at about $100,000 for 4 days, and if they keep this rate that would make it roughly $9.1 million a year.

    While not a landslide for a company like Apple, it is still respectable and probably takes care of the overhead.

    Where apple makes a killing is on the sales of the ipod music player. Expect sales of these to go through the roof now that there is a windows client (especially with Christmas around the corner) and it's not unreasonable to expect them to sell 3 million a year.

    If Apple were to only make $34 profit a unit, that would mean an additional $100 million a year profit.

    Add to this the untangible values gained from increased brand recognition and respect (leading to increased Mac sales), which in turn leads to a steadily increasing stock price [yahoo.com], it is indeed easy to see that there is lots of sales and profit.

    Congratulations Steve, you have once again shown your cunning.
  • by herderofcats ( 409703 ) on Monday October 20, 2003 @04:58PM (#7263563)
    My biggest issue with all of these per-song services (iTunes, MusicMatch, the upcoming new Napster) is that you are paying relatively full price for lower quality.

    I much prefer Magnatune [magnatune.com]("we are not evil") who allows you to download wav and lossless .flac versions when you purchase a song or album.

    My second problem is that my tastes are rather eclectic, and using iTunes to find albums to my taste hasn't been working. For instance, I'll pick an album that I really like, and look at the "people who buy this album also buy" and discover I don't like any of their suggestions. But I don't buy much popular music, so it may work for other people.

    Related, the 30-second browsing is often not enough for me. Supposedly the new Napster per-song service will allow you to preview the whole song. I know that I bought some Magnatune album recently because I could browse the whole album.

    -- Herder of Cats
  • I'm not rejoicing until they stop giving loads of money to the RIAA and start giving it to the artists that need it. Try this calculator [mosesavalon.com] and see how much you're paying to the artists.

    I want to see a big company take the chance and deal directly with the artists instead of the RIAA. "Hey, I'll pay you 25%, instead of the RIAA's 2%. That sound good with you?"
  • by JustAnotherReader ( 470464 ) on Monday October 20, 2003 @05:00PM (#7263587)
    I would like to quote what I heard on NPR last week (and what I posted here on Slashdot as well) :

    On National Public Radio a representative from Apple was talking about the fee structure. 99 cents per song is distributed thusly:

    • 80 cents to the record companies who have done essentially NOTHING except allow a form of sales that requires them to produce no physical product.
    • 19 cents is split between the artist and Apple.
    And yet they keep quoting the 10 Million Downloads In the first 3 months statistic and now the 1,000,000 song statistic. This means that for those 1 million songs the record companies made $800,000 and that the artist and Apple have to share $190,000.

    So the record companies have no physical product to produce, they don't have to pay for the software, or the bandwidth, and they make 80% of the money for doing essentially nothing. Of course Apple has to promote the iPod, they have to pay for the software development, the bandwidth, the data storage etc and they have to split their share with the artist (who once again seem to be considered a line item expense rather than the people who produce the art and product)

    Don't fool youself into thinking this is supporting the artist. The record companies are just as corrupt as ever.

  • Re:Is it for me? (Score:1, Interesting)

    by Anonymous Coward on Monday October 20, 2003 @05:01PM (#7263591)
    On the mac side, they support the Nomad, the Rio, and over 20 mp3 players
  • by moltar77 ( 708055 ) on Monday October 20, 2003 @05:02PM (#7263613)
    do we like or hate the RIAA today? Keep in mind, buying iTunes songs is supporting the people that subpeona grandmas and 12 year-old girls. iTunes sounds attractive, but I hate to give anything to people this greedy and corrupt.
  • Subscriptions are really the way to go with Audible. For $20/month you get any two books on the store, whereas buying them individually you will pay that much for just one new release. Just use the individual purchases for the $5-10 classic titles.
  • by homer_ca ( 144738 ) on Monday October 20, 2003 @05:15PM (#7263770)
    And what happens when everybody who wants an Ipod has one? Wasn't that Palm's problem, market saturation? It's not like Ipods have a 1 or 2 year upgrade cycle, where they'll have repeat buyers. Those 1st gen 5GB owners might be looking to upgrade, but the rest are good enough to keep for a long time, or at least 3-4 years until the rechargable battery wears out.
  • What a dumbass (Score:5, Interesting)

    by NanoGator ( 522640 ) on Monday October 20, 2003 @05:16PM (#7263792) Homepage Journal
    "The store has now had 14 million songs purchased and downloaded since its original launch in April."

    Anybody remember when Jack Valenti said this:

    Well, my answer to that is: There is no business model ever struck off by the hand and grain of man that can compete with free. It can't be done.


    Permission to be smug, sir!

  • by shotfeel ( 235240 ) on Monday October 20, 2003 @05:18PM (#7263809)
    Don't know if its been mentioned or not, but those million people also installed the latest version of QuickTime along with iTunes (assuming they installed it). I gotta wonder if that's the biggest jump Apple's ever had in QuickTime penetration in the Windows market.

  • by glenstar ( 569572 ) on Monday October 20, 2003 @05:32PM (#7264019)
    1m songs x .99 = $990,000 - $650,000 (label royalties) = $340,000. Subtract HR, bandwidth costs, etc, etc... and they are not making much at all. But, and it's a very important but, they do get to book a million dollars of revenue in a 3 day period which is pretty impressive.
  • Re:go apple! (Score:5, Interesting)

    by casio282 ( 468834 ) on Monday October 20, 2003 @05:41PM (#7264118) Homepage
    It's funny -- I can't even look at the new Napster site right now b/c my work proxy settings still filter it.

    I wonder how many corporations are still blocking the napster.com domain, and what effect that's happening on their business?
  • by Rimbo ( 139781 ) <rimbosity@@@sbcglobal...net> on Monday October 20, 2003 @05:49PM (#7264192) Homepage Journal
    Apple's recent history has been to get things "right" first, and get performance improvements made later. Case in point: OS X, which began as a very slow OS, and with each successive cat (Jaguar, Panther) has become faster and more efficient.

    So it's likely that Apple will release faster/smaller versions for Windows with time.
  • Re:Wrong! (Score:3, Interesting)

    by pi radians ( 170660 ) on Monday October 20, 2003 @07:52PM (#7265428)
    It wasn't locked up, just temporarily disabled. If you gave it a couple minutes, you would have had your entire library loaded in iTunes and never had to worry about it again.

    Patience.
  • by mcc ( 14761 ) <amcclure@purdue.edu> on Monday October 20, 2003 @08:16PM (#7265680) Homepage
    Hopefully by that time Apple's found some new "next big thing" to latch on to.

    The nice thing, hopefully, about the iTunes Music Store is that once it stops being an active profit-bringer because of the iPods, it still is at least breaking even. So Apple isn't really paying any money for it to run. It's just kind of self-sufficient.

    Moreover, even if they don't make any money from it, the iTunes Music Store does good things for apple. It engenders some kind of goodwill, it makes some people who might otherwise write Apple off take them seriously enough as a still-vital company they might look at some of Apple's hardware offerings, it gives Apple something they can point at and say "look at all the revenue passing through the Music Store every month, we're not going anywhere anytime soon".

    Perhaps most importantly though if iTunes is adopted in a big way it makes a big logjam on the spread of Windows Media. If someone really loves iTunes, even if they don't like the iPod they'll be more likely to buy an mp3 player than a wmv player. If nothing else, this means that once wma starts trying to take off, people will actually go "wait, this DRM is really stupid" since they've dealt with what is, purely relatively speaking, a more reasonable DRM system (iTunes).

    Also, iTunes is a sneakily brilliant and possibly unintentional way of making absolutely certain that almost everyone has a non-Microsoft way of viewing MPEG4s. WMV vs. MPEG4 is likely going to erupt into a rather painful war at some point, and this is MPEG4's big beachhead... how many music players do you think will add AAC as a result of the iTunes store? Maybe not many, but certainly more than there would have been otherwise..
  • Re:Is it for me? (Score:2, Interesting)

    by curiosity ( 152527 ) on Monday October 20, 2003 @08:37PM (#7265820) Homepage
    I see people bandying about the claims that re-encoding from lossy to lossy codec gets worse. Of course, it sounds so obvious. But here's my question - hopefully someone can point me to an explanation. If a codec took a WAV file, say, and truly took out only the bits you couldn't hear anyway, why wouldn't you be able to de-compress it to WAV (not the same WAV of course, since it's lossy), and then re-compress it to the exact same file it created the first time - in other words, why can't the codec say "Hey, there's nothing here I can remove, because it's all audible or distinguishable"?

    These "intelligently lossy" codecs should be able to be transcoded infinite times without any loss in quality, assuming they had the same definition of "losable data."

    I'd like to be educated - it seems like it should be possible with an intelligent codec, yet I've never seen one.
  • Re:Is it for me? (Score:2, Interesting)

    by Rick Zeman ( 15628 ) on Monday October 20, 2003 @08:59PM (#7265978)
    Even if you have Windows, it only works on Win XP, and 2000, leaving those with 98, ME and NT out in the, er, cold.

    If Microsoft isn't even supporting them why should Apple? Let's be real here.

  • by shaitand ( 626655 ) on Monday October 20, 2003 @11:00PM (#7266823) Journal
    It costs me less than $0.30 per disc to produce cd's in my home and buying the cd's in quantities of 100.

    Now call me crazy but somehow I think it costs the labels who buy their discs in millions a wee bit less to do it, add power bills and salaries for employee's etc (although this could and should be a damn near fully automated process, 3 employees and a shipping crew could do everything to produce the discs for thousands of artists in a week), and let's say that cuts the margin to more like $0.20/disc for them. Now they sell them for $15-20 a cd. Somehow I don't think cd production is their biggest problem, and it's not like they have to look for retailers/distributors either.

    Sad though, add the artist's $0.15 to that and it costs the studio $0.15 since the artist is charged for the production costs... most likely charged $0.35/cd, so make it $0 for the studio to produce cd's. Hmmm... I really don't see how the studios care about this one way or the other ;)

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