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Nielsen Research Looks Into Money Split For Music, Video Downloads
Friday, December 16th, 2005 at 2:10 PM - by Staff
A report by Nielsen Entertainment Research has revealed that the music labels earn about US$0.34 from each $0.99 download, compared to $0.31 for the seller, such as Apple, and $0.34 for rights and royalties. The economics of video downloads are similar, with the $1.39 going to the content owner "virtually identical" to what's earned from DVD sales of TV series.
Frank Barnako, writing about the report for MarketWatch, quoted Nielsen analysts as saying that the future of video programming lies in the on-demand arena. However, businesses need to figure out how to deal with the idea of "consumer as programmer," according to Nielsen, and understand "how to best monetize the opportunity and understand the underlying economic models."
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