4 ms·

Thanks for the summary. You're right that I got up to software patents, then instapaper'ed the article and tuned out. I think I disagree with this part: The 20

Thanks for the summary. You're right that I got up to software patents, then instapaper'ed the article and tuned out. I think I disagree with this part: The 2012 value chain: artist < iTunes < label. The artist makes marginally more. But iTunes does't add significant value: unlike the stores, which were paid to take inventory risk and predict demand, iTunes takes no risk and performs almost no service other than dealing with card processing fees. Isn't there tremendous value in a system that makes it easy to browse music, make payments and download them to your music devices?

tptacek 15y ago
We're probably working from two definitions of the word "value" (with mine, being McKinseyspeak, being the more confusing). Apple does a lot of excellent things. What they do not do is shoulder a lot of risk. Compensation for having put capital at risk is part of why the labels get such a big cut, and why the brick & mortar stores did too.