Below is an interesting chart I found on Neue Züricher Zeitung (NZZ - a leading Swiss national newspaper) on how revenues of an iTunes album are split.
NZZ researched a 17 Swiss Francs (sFR) download album. The title "Krümel für den Künstler" translates as "crumbs for the artist".
Here are the figures translated and in %:
Artist | SFr. 1,30 | 8% |
Management | SFr. 1,50 | 9% |
iTunes | SFr. 9,50 | 56% |
Label/Producer/Distributor | SFr. 4,70 | 28% |
SFr. 17,00 |
Short Commentary:
- I was shocked when I saw these numbers. The artist only makes 8%. Compared to 30% fee of any app dollar that is made on the iOS Store, Apple takes 56%
- Label/Producer/Distributor would have to be specified. My guess is that the producer will get something between 2-3%. But check some more insights here: "Lessons from the music industry"
- Nobody remembers download services like Pressplay, Real, etc. anymore. Apple has a clear monopoly in the download sector which is currently being cannibalized by celestial jukebox streaming services like Rdio and Spotify. But as we already all know Apple is working on a music streaming service too. This space is really getting crowded with YouTube, Nokia, Sony, Samsung soon launching their own service.
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