Comment Re:Clearly doesn't understand IT costs (Score 0) 905
This reply got a five? On Slashdot of all places?
Do some quick math (using Parent's values):
Old method: Apple $.34 / $.55 Label
= Apple's profit as a percentage of Label: 61.8%
New method: Apple $.02 / $.03 Label:
= Apple's profit as a precentage of Label: 66.6%
Now for the artist:
Old method: Artist $.10 / $.55 Label
= Artist's profit as a percentage of Label: 18.1%
New method: Artist $.01 / $.03 Label:
= Artist's profit as a precentage of Label: 33.3%
This means that the parent's proposed numbers are an increase in profits for Apple and the Artists of 4.3% and 15.2% respectively. This is exactly the sort of thing we need to be encouraging, not discouraging!
Repeat, for any point of sale price per song, under the above model, Apple and the Artists would make more money on every song sold. That means if the same $.99 cents was spent on the new model vs the old, the artist would see an increase of ($.99 / .05) -rounded down- * .01 = $.19 instead of $.10 in the current model.
This also means that 10 songs must be sold for the artist to make the same $.10 they make in the old method. However, that only constitues $.50 of customer purchases!
I expect more from Slashdot!
I know no one will read this anyway.
Do some quick math (using Parent's values):
Old method: Apple $.34 / $.55 Label
= Apple's profit as a percentage of Label: 61.8%
New method: Apple $.02 / $.03 Label:
= Apple's profit as a precentage of Label: 66.6%
Now for the artist:
Old method: Artist $.10 / $.55 Label
= Artist's profit as a percentage of Label: 18.1%
New method: Artist $.01 / $.03 Label:
= Artist's profit as a precentage of Label: 33.3%
This means that the parent's proposed numbers are an increase in profits for Apple and the Artists of 4.3% and 15.2% respectively. This is exactly the sort of thing we need to be encouraging, not discouraging!
Repeat, for any point of sale price per song, under the above model, Apple and the Artists would make more money on every song sold. That means if the same $.99 cents was spent on the new model vs the old, the artist would see an increase of ($.99 /
This also means that 10 songs must be sold for the artist to make the same $.10 they make in the old method. However, that only constitues $.50 of customer purchases!
I expect more from Slashdot!
I know no one will read this anyway.
