Peter Kafka

Recent Posts by Peter Kafka

Apple’s $8 Billion Media Business

Apple is really in the hardware business, not the software business — it just uses the sales of apps, music, movies, etc., to help sell gadgets.

But boy does it sell a lot of software: iTunes sales came in at $1.9 billion last quarter, which puts the digital store at a run rate of $8 billion.

That’s up 35 percent from a year ago, when iTunes did $1.4 billion.

During Apple’s conference call today, CFO Peter Oppenheimer answered a query about delays getting new content into iTunes with a boast about the depth of the store’s music and video catalog. But as always, my assumption is that the bulk of that growth is fueled by app sales, not traditional media sales.

 


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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work