The Beatles' Contract Most Lucractive In iTunes History
Okay, we realize this title is sort of obvious. Of course [lastfm link_type=”artist_info”]The Beatles[/lastfm]’ music on iTunes is a huge success. The Beatles on iTunes is like ice cream in the summer, it’s gonna sell because there is a major demand. But it’s not the demand that is interesting here, it’s that the supply chain is a giant loop feeding directly back to itself in profits.
The deal that brought The Beatles discography to iTunes may be one of the most lucrative contracts in the history of digital music, Reuters reports.
Industry sources say iTunes is paying royalties directly to Apple Corps, and Sony/ATV Music Publishing. According to Rolling Stone this deal varies from the standard contract where record labels license songs from publishers, collect revenue from retailers and distribute royalties to the artist and publisher. Less middlemen makes more profit thus the speculation that this contract sets a new precedent.