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.’”
“As if it weren’t hard enough to be cool already, Apple Computer has introduced a new way for people to ruin their social standing.
Thanks to the ability of Apple’s iTunes to share music collections over local networks, it is now possible to judge someone’s taste in music—or lack of it—in a way that previously required a certain level of intimacy.”
Popular Science has included the iTunes Music Store in the Computing section of their annual “Best of What’s New” issue (December 2003), along with the Power Mac G5. Popular Science does not provide “rankings” within the category, although the Grand Prize winner in the Computing category was 802.11g, which Apple was first to commercially adopt.
Apple has now made available gift certificates for the iTunes Music Store through Apple Store online. You can purchase gift certificates for any persons residing in the U.S. from $10 to $200, or you can also try your luck by entering our Happy Birthday iPod Giveaway.
“‘Most of the money goes to the music companies,’ admitted Jobs.
‘We would like to break even/make a little bit of money but it’s not a money maker,’ he said, candidly.
So now we have it on record: the music store is a loss leader. Jobs said Apple would pay its dues to the RIAA, then seek to make money where it could, from its line of hardware accessories. When the conversation turned to rivals such as eTunes and Napster, Jobs said: ‘They don’t make iPods, so they don’t have a related business where they do [make money].’”
“Less than a month after Pepsi announced a blockbuster deal to give away 100 million downloads from Apple’s iTunes music service to its customers, McDonald’s is close to a announcing a much bigger deal, The Post has learned.
In a dramatic move that gives a thumbs up to the music industry’s efforts at creating legal alternatives to file sharing, McDonald’s plans to give away up to 1 billion songs in a marketing campaign, according to sources familiar with the matter.”
Several readers note that Musicmatch has sent an email regarding a serious software conflict with iTunes for Windows.
“As a valued Musicmatch customer and iPod user, we want to alert you to a serious software conflict caused by iTunes for Windows.
Apple iTunes for Windows prevents Musicmatch
“Speaking on the Inside Digital Media show, Lowe said: “We suggest that manufacturers on any platform looking for a jukebox to carry with their products should take a look at us. iTunes is the best jukebox and the best music store as well.”
Lowe, director of marketing for application services, went on to repeat Apple’s claim that one million Windows users downloaded iTunes software within three-and-a-half days of its release, and that a million song sales also took place.”
“With a program for Macs and PCs that allows users to listen to the music of any iTuner who authorizes it and is on the same network, more Stanford students are jumping on the iTunes bandwagon. [...]
‘They have a super cool just-as-good-as-Mac version out now for Windows, ‘Wang said. ‘Once you get the program, you can access the MP3 music library of anyone on the local network (so it’s almost as good as downloading, but you don’t fill up your hard drive) and, oh yeah, it’s not illegal. Woohoo’”
DailyTunes.com launched today—a new song recommendation site for iTunes users. The site provides iTunes links to the Music Store for each song listed. User recommendation lists and associations offer a lot of potential for new music discovery… allowing users to “surf” music by linking from one song to the next (related) song.
“Apple Computer plans on Wednesday to release an updated version of its iTunes program intended to fix bugs encountered by some Windows users.
The company is in the process of posting to its Web site version 4.1.1 of iTunes, which aims to remedy some initial glitches with the jukebox software that Apple released last week. As previously reported, some Windows users were reporting bugs with the software, including a problem that caused some Windows 2000 Professional machines to freeze after installing iTunes.
“A few customers reported conflicts with specific PC configurations and we quickly updated the iTunes software in response,” Apple said in a statement. “iTunes 4.1.1 addresses an isolated incompatibility with Windows 2000 and older third-party CD burning software, as well as problems caused by corrupt MP3 files on some users’ PCs.”“