Monday, November 21, 2005

iTunes Outsells Tower Records

iTunes now sells more music than Tower or Borders, and in a brief but brilliant item, Techdirt puts the news in perspective, in a way that the media are likely to miss.

As Techdirt points out, iTunes sells music as a loss leader to move iPods, just as the top three music retailers (Wal-Mart, Best Buy, and Target) also use music as a loss leader. "The recording industry hates to admit this, but their products are best served being promotional goods for other offerings. Recognizing that fact certainly would open up plenty of new business models -- but the industry can't seem to let go of the idea that they can get a premium for music alone."

In other words, everyone likes to make money off the razors, but that means someone has to admit he's making the blades.

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