According to Matt Deatheridge, Apple is earning between 15 and 20 cents per song.
Hopefully the iTMS will help to chip away at Apple's biggest problem: perception of the masses. A few weeks ago I was using my tiBook and some moron I work with said, "It looks like a toy." another chimed in, "They all are!"
Does a toy go months on end of heavy use and not crash?
Even people my age (30) commented and criticized the iMac when it first came out. How it looked like a toy, a Nintendo system. Nintendo's GameCube is suffering the same problem. The xbox looks COOL, like a component, the GameCube is purple and has a handle. (Apple similarity #1) It's irrelavent that Nintendo's offering isn't claiming to be anything more than what it is: a game system.
The Mac OS is "cutesy". Thankfully in 10.2 the smiley face mac on start-up was changed to a Phillip Glass style start-up screen. Jaguar is beautiful and the dock works well but those accustomed to the bland, dank, flat, pixelated world of windows, the Mac OS is probably too much to take at once. The idea of an OS being easy on the eyes is somehow cutesy. the smiley face Mac is Apple's Mario. Nintendo can't get away from being thought of as a kid's system. Despite Metroid Prime, Eternal Darkness, PN 03, Soul Calibur II, Resident Evil, etc... (Apple similarity #2)
Apple innovates, microsoft copies
Nintendo innovates, sony and microsoft copy. (Apple similarity #3)
The Macintosh isn't as fast/powerful as windows. No basis in reality. My Quicksilver G4/933 out performs in Photoshop my girlfriend's Sony Vaio 2.2 gHz desktop, both purchased around the same time. The xbox's specs are higher overall than the GameCube's but the xbox is prone to bottlenecks and does not use the resources as efficiently as the Cube. Nintendo also makes profit on their console, while the xbox is costing ms money for every system sold. (Apple similarity #4)
Macintosh computers cost too much. This is less true than ever. Ever look at the insides of a cheap dell? Now, that's a toy. The chassis of a Macintosh is a tank in comparison and the way the boards and cables are arranged is astonishingly easy to work with. The G4 tower line is for professional users, build a wintel box the same way and the cost difference is minor.
Anyway, hopefully the masses will see the iTMS and say, This is good, Apple is good, MUST. BUY. MAC.
Apple Should Have Released The Music Store For Windows First