iLounge

“The insightful brand strategy behind the iPod, iTunes and the latest part of this digital music package, the iTunes Music Store, wins Apple kudos for one of the clear brand hits of 2003, according to Prophet, a leading management consulting firm specializing in the integration of brand, business and marketing strategy.

‘We’ve identified a short list of three of this year’s brand hits and two of its misses,’ said Prophet Chief Executive Michael Dunn.‘Combined, they provide a very succinct lesson in the importance of understanding brand’s value to customers, how well the organization delivers on what the brand stands for, and how to make it stretch (or not) into new space to help the business grow.’”

“From November 28 to December 24, we’ll be giving away a 10GB iPod every day. Download iTunes and create a new iTunes Music Store account, and you’ll be automatically entered* into our daily drawing. Once you create an account, your name remains eligible until December 24, so the earlier you sign up, the more chances you have to win.”

“Someone you know loves music You’ll want to kick off your holiday shopping at the Apple Store. We’ll be hosting an all-day shopping event designed especially for the music lovers on your list. Whether they’re Mac or Windows users, you’ll find a scintillating array of gifts, plus, a few surprises in store for you.”

“It’s a little known secret that Apple barely makes money off iTunes, despite the software’s popularity—nearly all revenues still go toward the copyright holders: the music labels.

By luring people in with the free iTunes, Apple put itself in a position to sell them its popular iPod mp3 player which is uniquely compatible with the iTunes software and is selling like hot cakes. Each $499 iPod brings in $175 in profit.”

“Apple Computer CEO Steve Jobs this year becomes the first person to be named to Advertising Age’slist of leading brands three times. He’s made the Marketing 100 twice, as well as this year’s section, the even more selective Marketing 50.

Not bad for a guy who never had a traditional marketing career. This year, Mr. Jobs wins for turning the charged debate over the illegal downloading of music over the Internet into a marketing opportunity. His dual platform approach includes successful marketing of the iPod music player in tandem with iTunes, its online music store.”

“Sponsored by action sports event coordinator ASA, a tour reaching 35 public high schools in seven major metropolitan areas provides students action-packed entertainment from extreme sports professionals and an anti-tobacco message in partnership with the Campaign for Tobacco-Free Kids.

On the sidelines of assemblies, students can see, hear and test drive iPods. In awe of how much music the iPods can store and how cool they are to use, many students are adding iPods to their wish lists.”

“‘Why should we work with another music store when we are working with the Microsoft of music stores?” Jobs said. “I’d rather spend our engineering dollars on enhancing the iPod and the iTunes music store.’”

“Apple has increased its advertising presence for iTunes and iPod on New York’s WXRK (K-Rock) radio station as of late. According to numerous MacMinute readers, live ads are being read regularly by Howard Stern on his morning talk show for the iTunes Music Store and the iPod. Stern stresses the fact that both products are now Windows compatible. He has also been giving away 40GB iPods to callers. Meanwhile, The Cane Show is currently holding an “iPod Song of the Day” contest in which winners receive a free iPod. Cane also mentions the iTunes Music Store and its pricing throughout his show.”

“The risk is that Apple could end up where it has so often before—with only a high-end niche of a market it pioneered. To keep that from happening again, it’s betting Windows users will be drawn to Apple’s trademark elegance and ease of use. Moreover, the emerging MP3 player business will remain highly fragmented, much like the early days of the PC market, when Apple prospered with an 11% share. In the short term, at least, the launch of the Windows Music Store is expected to galvanize iPod sales.”

“Apple’s charismatic CEO sat down with NEWSWEEK’s Steven Levy—after introducing the Windows version of iTunes and the upgraded iTunes Music Store last week—to discuss the world of digital music. [...]

Still, $300 to $500 is an obstacle to a lot of people.
No, of course I don’t think it’s too costly. Fifty million homes have DVD players that cost that kind of money. For music lovers, I don’t think it’s a hurdle at all. There are sneakers that cost more than an iPod.
       
Some think you wouldn’t want to sell a $100 iPod because the profit margin would be so low.
What are you talking about? We’d love to have a $100 iPod! We just don’t know how to do it right now. We’re constantly trying to make cheaper iPods. We’re working on the next step.”

“The Cupertino, Calif., company, which reported fiscal fourth-quarter earnings Wednesday that beat analysts’ expectations, is expected to announce today a promotion deal that would give Pepsi buyers free songs from Apple’s fledgling online music service.

Sources said the unveiling of the pact with PepsiCo Inc. was timed to coincide with today’s release of a Windows-compatible version of Apple’s iTunes Music Store, which has been available only to Macintosh users.”

“‘It was a great new product quarter for Apple,” said Steve Jobs, Apple’s CEO. “We launched the Power Mac G5, the fastest personal computer in the world, new PowerBooks and new iPods. Plus, we’re delivering Panther, the next major release of Mac OS X, later this month and we’ll have some exciting news regarding our music efforts tomorrow.’”

“Look here, at the packaging for the iPod. You ain’t about to find this type of artistic approach in any sort of mass-consumer package design. Yes, it is one of the most expensive MP3 players on the market. Yes, it is by all accounts the best and most elegantly designed MP3 player on the market. And, yes, it is selling by the truckload. There are reasons for this.”

“Many observers believe Apple is more focused on launching the Windows version of iTunes in the US than it is on Europe. The company has committed to launching the Windows version before the end of the year. Jobs says: ‘We said (iTunes for Windows) would be out in the US next quarter, before the end of the year. I think we are very much on track.’ 

One record industry executive says: ‘Everyone wants to see what success they will have on Windows. If they can sell ten million songs on Macs, which have only 5 per cent of the PC market, how much could they sell to 100 per cent of the market?’”

”When will you bring the iTMS to Europe? First priority for us is to make it available to Windows users in the USA and this will happen before the end of the year! But, we are really commited to bringing iTMS to Europe as soon as ... yesterday if we could ... but the European music licensing market is very complicated. A song might be distributed by one company in the UK and a different one in France, and then another one in Germany! So we have been trying to sort thru all of that for several months already and .. we hope that early next year we will be able to offer iTMS to European users, both MAC and Windows!”