---
title: Apple does not make money on iTunes
date: "2003-11-07T12:00:00Z"
categories:
  - links
wp_id: 877
description: I examine how Apple's iTunes business model transitioned from a break-even service meant to drive iPod sales into a profitable platform. By renegotiating credit card fees and music label agreements, Apple eventually secured margins of roughly ten cents per song.
keywords: [itunes, apple business model, riaa, credit card processing, digital music sales, ipod ecosystem]
---

However, [Apple doesn't make money on iTunes](http://www.theregister.co.uk/content/6/33850.htm). It goes to the RIAA and credit card companies.

**Update: 24 Apr 2007** -- Looks like [Apple is making money on iTunes](http://www.macworld.co.uk/ipod-itunes/news/index.cfm?newsid=17845) after all. They've renegotiated agreements, especially with credit card companies, and make as much as 10 cents per song.

---

## Comments

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- **drew** _15 Feb 2011 2:08 am_:
  it obviously does its a company from what revenue they get get say 1.5 B they would give alot to companies (who then takes some and gives it to the artists) and they're left with around 500 M and then thats what they earn

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