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iTunes and iPods have ‘protective effect’ for Apple
Echoing comments from Piper Jaffray, Banc of America Securities said today that Yahoo’s new music service will “have very modest near-term impact” on Apple. “The stickiness associated with iTunes and Apple’s hardware has had a protective effect (as they are only compatible with one another), and Apple has held share in music downloads and gained shared in MP3 in the last few quarters,” the research firm said. “If the subscription model does prove to be popular, we would expect Apple to counter and match with a subscription model of its own, which would increase margins.”
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1
$5 a month for unlimited music? This is going to kill Napster to-go and Rhapsody. Maybe even iTunes if they don’t get with the program. iTunes would benefit greatly from a subs. service. I wouldn’t be suprised to see it soon.
Posted by matt928347 in California on May 12, 2005 at 4:03 PM (PST)