The Big Apple: Steve Jobs holds record industry to ransom
Apple have created a monopoly in digital music. The record labels tend to do as Apple says because this is where most of their sales come from.
In 2003 , Apple starts iTunes – a digital music store where consumers can buy their favorite songs. Most labels of note sign up to iTunes, apart from Apple Records, who own the Beatles back catalogue.
The songs are AAC files, which are only compatible in devices such as iTunes, iPod, iPhone, iMac etc.
The average price of a song on iTunes is 79 cents. Apple is the retailer but in some cases they are also the distributor. This means Apple can take around 1/4 of the sale.
Nobody knows how Apple can justify selling an album at RRP when there isn’t any packaging. Nobody dares to challenge the Big Apple anyway..
Apple becomes the monopoly in digital music, with around 80% of all digital music sales being purchased from iTunes.
In March 2011, Steve Jobs is ordered by a judge to face anti-competition charges regarding iTunes Store.