Apple's iTunes profit agenda

The iTunes store was founded on the idea that it would run as a "break-even" business, but rampant growth now earning the tech giant a handsome profit.

Apple's iTunes store will be 10 years old next month. From its inception Apple has stated that it aims to run the store “at break-even”.  The business has grown so rapidly however that its profit-free nature has come under severe pressure.

The reasoning goes that as more media types have been added costs have increased but revenues have increased even faster. Consider the estimated gross revenue base as shown below:

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