“While piracy continues to threaten the music business, Apple Computer’s iTunes Music Store is the digital hit of the year with 20 million 99-cent-a-song download since April.
The thunderous response to iTunes helped push four other music services to market, with several more planned. But their initial success has been much more muted.
The first to take on Apple was BuyMusic.com in July. It expected 1 million daily song downloads. ‘We’re not achieving that at all,” says BuyMusic CEO Scott Blum. “I’ve spoken with my competitors, and we’re nowhere near (Apple’s) numbers.’”
You know, it seems like only yesterday that I pointed out that all (both) of the players in the soft drink space were spoken for when it came to digital music. In fact, it was yesterday. The good folks at Roxio must have been reading my article, and realized that they were in a bit of a pinch now that both Coke and Pepsi sponsorships were off limits, because they’ve moved on to other beverages in search of sponsorships, and no I’m not talking about Fresca. In what may amount to a new all-time low for the high-tech industry, the brains behind the Napster mini-revival have signed up a beer company as their new sponsor. Yeah, you read that right…
“Apple Computer Inc. will open its iTunes Music Store to customers in Japan by as early as next year, CEO Steve Jobs, in Tokyo for the opening of Apple Store Ginza on Sunday, told The Asahi Shimbun. [...]
Online music sales have yet to catch on in Japan, the world’s second-largest music software market following the United States, but growing interest from companies such as Apple underscores the market’s potential.”
“Indeed, the download services are seeing some signs that many music listeners are accepting the 99-cent price tag, despite some downward pressure. Apple Computer said Monday that it has now sold more than 20 million songs in fewer than seven months through its iTunes song store.
Online buying patterns are also beginning to emerge, pointing to potential ground rules for the new services. Apple director of marketing Peter Lowe said that 45 percent of songs downloaded through iTunes had been sold as part of a full album, rather than in single song form. That indicates many people are still interested in purchasing large numbers of songs, or full albums, despite having a la carte options, Lowe said.”
CNET News has posted information on how the recent iTunes DRM hack works.
I’ve posted an article on my blog about using the iTunes Music Service as a means to obtain new tracks that are included in greatest hits collections without having to buy the entire album. I thought I’d pass it along in case the other readers of this site would be interested.
MacMinute reports one of its readers has discovered that you can now send iTunes Gift Certificates purchased from the online Apple Store via United States Postal Service. Previously you could only send gift certificates to someone via email. Gift certificates are available from $10 to $200 to purchase and download music from the iTunes Music Store.
“Jon Lech Johansen, better known as DVD Jon for his authorship of the DeCSS decryption software, has turned his attention to Apple’s locked music format. [...]
Apple negotiated a loophole for its iTunes Music Store that allows a playlist to be burned to a CD ten times. When Johansen’s program completes, it displays the message “Success! Fair Use Enabled”.
When iTMS began selling locked music in April, Johansen described it as the least fair-use hostile. Johansen’s program defangs it one step further.”
MacRumors is reporting that during an Interim Results 2003 Conference, EMI Music Chairman and CEO, Martin Bandier, while discussing the growth of music download services said, “... but there is real potential for the future especially when PepsiCola makes a commitment to giveaway up to 100 million downloads and McDonald’s commits to 1 billion in download giveaways as part of a promotional campaign.” The New York Post had reported that McDonald’s was expected to announce a deal with Apple to offer a 1 billion iTunes song giveaway, but McDonald’s later said in a statement that the deal was ‘pure speculation.’
“Apple’s chief financial officer Fred Anderson pressed home the innovation at the heart of Apple’s strategy during a speech at Lehman Brothers Semiconductor and Computer conference yesterday.
With its market lead on competing music download services and its leading music product, the iPod, Anderson explained: ‘Many who experience buying songs from iTunes will go on and buy an iPod and maybe they will buy a Mac when they think about buying a second or third computer for the home.’”
“In October, Apple and Pepsi-Cola North America announced they would give away 100 million free songs to Mac and Windows users from the iTunes Music Store.
This promotion begins on February 1. Pepsi is randomly printing 100 million winning codes in 20-ounce and one-litre bottles of Pepsi, Diet Pepsi and Sierra Mist. The winning codes will be redeemable for a free song from the iTunes Music Store.”
The first annual Webby Business Awards has presented Apple’s iTunes Music Store the Business Award in the Retail category.
“By seamlessly combining elegant ease-of-use, an extensive music library, integration with the world’s most popular portable digital music player - iPod, and copyright mechanisms that protect both intellectual property and customers
I’m currently working on my MBA and was required to do an economic analysis of a product lifecycle. Being a new iPod/iTunes convert, I decided to talk about how Apple has taken on the old RIAA/CD retail distribution model. This website has been a great source of information for me and I would like to share my analysis with the group. This posting does not represent the view of my employer.
Not really news, more of a what if? Some iPod users have discovered the power of Smart Playlists (a peek at smartplaylists.com gives users some great ideas). What if Apple were to pay users to rate their songs, so that info could be uploaded to the iTunes store to make recommendations more accurate?
“However, music-industry executives believe Apple will face fierce competition from established heavyweights in the digital-music download market.
MusicNet CEO Alan McGlade told CBS MarketWatch he thinks Apple’s service may be an early leader, but that others will dominate the new market in future.
He said: ‘The big companies are going to dominate. AOL is going to be a significant player. Companies like Yahoo, MTV, Microsoft, Sony. I don’t think it’s going to be iTunes.’”
“Now that Apple is offering ITunes software and access to its music store to Windows users, the company has an opportunity to significantly increase its market share in the area of downloadable music. But the company also has to contend with applications like the recently released MyTunes, which allows Windows users to circumvent the intended use of the software by downloading music from an ITunes shared playlist over a network.
Bill Zeller, a 20-year-old Trinity College student, wrote and released MyTunes just ten days after the official release of ITunes for Windows. His Web site claims that the application is intended to enable users ‘to save music from other computers to your hard drive.’”