Apple Losing Money Over New iTunes Movie Sales

by Jody Mitoma on May 4, 2008 at 8:44 pm

According to the Wall Street Journal (see here), Apple Inc. is actually losing money with each new-release movie sold on iTunes. New movies currently cost $14.99, but accoring to someone familiar with the matter, Apple is actually paying the studios close to $16 per sale for these new releases. While this price may be less than what the studio might charge for traditional retail sales, the actual profit margin selling through iTunes is much larger.

This approach is consistent with Apple’s insistence that the iTunes Store has always intended to run at just above break-even in order to drive hardware sales.

(Source: MacRumors)

Posted in Apple Corporate, iTunes Related