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iTunes Music Store doesn’t make money

Phil Schille, Apple’s SVP said in an interview that “The iPod makes money. The iTunes Music Store doesn’t” .
Considering that the iTunes Music Store is the #1 service of its kind in the world, with more than 13 million songs sold, what does this mean for other services of its kind? Is it even worth trying if you can’t combine it with a perfect user experience and a great player, like Apple can?
Obviously this has to do with the music industry taking the largest bite of the Apple, so to say. If they want this model to work for them in the future, their share will have to drop ultimately. If Apple reach their goal of 100 million songs by 04/04, they will have some say in the next pricing round with the music industry, I guess. If there is no money to be made in the long term, everybody loses.

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