2013/03/14

Revenue Split of an iTunes Album

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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