Apple May Be Holding Back The Music Biz
“Apple, which launched the digital music revolution, may now be holding it back. Critics say Apple's proprietary technology and its refusal to offer more ways to buy or to stray from its rigid 99 cents a song model is dampening legal sales of digital tunes.”
“So will Jobs change his tune? Not unless h e has to. Apple can barely keep up with demand for iPods, which reap as much as 25% gross margins, vs. minimal profits for each iTunes track. So right now there's no reason for the company to alter the way it sells music or make its player compatible with other services.”
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