And for the trial period, that means Apple is losing $2.40 per month per user in content costs, plus all of their infrastructure and delivery costs (plus application design, development, and maintenance), as the revenue per user is zero.
Yes I understand that, what I am pointing out to the clearly unaware, is that the pay structure they are offering is not outrageous or incredulous, in fact I’d bet its pretty much par for the streaming media industry.. to hit the price points of $10 a month or $15 a month for unlimited streaming type setups they could not operate without going out of business by paying much more than that.
I am always amazed at how insanely ignorant most folks are about general business operations in a society, and a site, that claims to be so capitalistic. End of the day most folks have no idea how small most margins are because they just see the end game of they made a huge number at the end of the year in profits. They never bother to see how much capital actually flowed through the model to make those profits.... Large scale is the only reason they make those large profits, most businesses are spending a very very high percentage of their revenues on operations, the percentage of their revenues that are actual profits, in most industries are very very small. Its economies of scale that make those very small percentages add up to big numbers.