iTunes subscription service - Feed The Geeks

cheater · #1 (**permalink**) 04-14-2007, 12:54 PM

I know this has come up many times before, but I just read an article on it that got me thinking. The article talked about apple setting up a $15 a month subscription service.

The only way apple could get money on it would be if people who bought less than $15 of music a month signed up. But then they would be losing money on the people who would buy more than $15 of music on the subscription.

How do subscription services manage to stay alive? I know they are great for the user, but wouldn't the company lose a TON of money?

Let me know what you think.

Robert · #2 (**permalink**) 04-14-2007, 03:27 PM

Yeah it doesn't sound right to me either. I'm sure Apple have a good reason for it and and plan to make money, but how I don't know.

I would love to hear from someone that knows how things like this make money.

cheater · #3 (**permalink**) 04-14-2007, 07:46 PM

Chances are. apple did the math. They figured out how much they need to charge a month to get the most people to buy. Remember, people have to renew their subscription each month. Also, not everyone will use a subscription (they will pay per song).Think $15 per month * 12 months = $180 a year. I didn't buy $180 worth of music last year. I mainly used my cds and bought the occasional song here or there. For me, they will get more money. Since it doesn't cost them to hand out the music, they gain off me.

macuser9214 · #4 (**permalink**) 04-22-2007, 04:39 AM

Quote:

Originally Posted by cheater

Chances are. apple did the math. They figured out how much they need to charge a month to get the most people to buy. Remember, people have to renew their subscription each month. Also, not everyone will use a subscription (they will pay per song).Think $15 per month * 12 months = $180 a year. I didn't buy $180 worth of music last year. I mainly used my cds and bought the occasional song here or there. For me, they will get more money. Since it doesn't cost them to hand out the music, they gain off me.

agreed. Mixed emotions about a monthly thing. Would also depend on the contract, and if I'd have to be in it the whole year.

cheater · #5 (**permalink**) 04-22-2007, 01:33 PM

Well, even if you had to be in it the whole year for $180, you would still get your money's worth. I would go on a "shopping rampage". I would buy all my favorite music, some videos, new music, and anything else. That would easily add up to way more than $180.

macuser9214 · #6 (**permalink**) 04-22-2007, 03:43 PM

I dont listen to music that much. i would probably use it for movies, and tv shows.

cheater · #7 (**permalink**) 04-26-2007, 02:02 PM

Apple makes money on iTunes – analyst - iPod/iTunes - Macworld UK

That says that apple currently makes about 10 cents per song. At the end, it mentions, "The analyst also believes Apple: “Has built and is capable of launching a subscription music service," which he expects the company will introduce in the next 18-months. He expects this to cost between $10-15 per month."

macuser9214 · #8 (**permalink**) 04-26-2007, 07:55 PM

thats not bad.. Hope it's true..

cheater · #9 (**permalink**) 04-26-2007, 08:02 PM

The 10 cents per song thing is probably true. As for the subscription thing, there is no way to verify if they will really add it.

macuser9214 · #10 (**permalink**) 04-30-2007, 01:20 AM

Seeing as they didn't even mention Mac at macworld we may never find out. lol

THEY BETTER MENTION MAC AT MW08