The Math Doesn't Agree
2.5 billion songs at $1/song means $2.5 billion over 4 years. The labels get 70%, which is $1.75 billion, and Apple get 30% which is $750 million. If there are 4 or 5 labels sharing the income that means about $100 million/year per label in royalties. Not quite chicken feed. Apple's take is $175 million per year, which is a lot of money for marketing and overhead expenses and should generate some hefty profits. The $1/iPod or iPhone doesn't come close to matching the income from music sales. Unless the numbers in the article were wrong (not an unusual event, unfortunately), it makes no sense for the labels to think that hw royalties are where the real money is.