Slashdot Mirror
Apple Launches iTunes Volume Discount Program
An anonymous reader writes "Apple has launched a volume discount program for iTunes. The program allows for volume purchases of songs for giveaways, incentives, and others. Seems like this is what is going on beyond straight licensing programs to universities like Florida State."
In a nutshell Apple is standardizing their marketing incentives for 3rd parties to come and take as they see fit. I would expect a steady stream of revenue coming from this program for a number of years. Just like the creation of iTunes gift certificates and allowances lets parents bot keep tabs on things and give a present at the same time, these volume certificates will allow universities and corporations to do the same.
Given the fact a few colleges & universities have already gone the supply-music-to-students-legally route, it makes sense for Apple to get in here too. A university may buy a block of 100k songs. All AAC encoded, and if the students want to get a music player to listen to all their legal school-supplied music, there's only one on the market...
Besides all the promotion etc., think of the CC processing fees they would be saving. The second biggest chunk in the $0.99 purchase price was CC processing fee. With this move, they eliminate 25-30c from their costs, give 20 to their customers and maybe get to keep a few cents themselves.
I know nothing is that simple, and it would cost them to build software for bulk purchase, keep track of codes etc., but I think this is a good move for long term.