The iPod-iTunes Phenomenon | iLounge News

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The iPod-iTunes Phenomenon

“One word describes Apple’s sudden success with iPod and the iTunes Music Store: “Phenomenon.”

Apple’s early music success transcends technology features and is as much about basic human characteristics often overlooked by companies developing new products. The popularity of iPod and the iTunes Music Store offers interesting cultural lessons for Apple and its competitors. What is the measure of success? People.”

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Comments

1

what a stupid link. is ipodlounge becoming as retarded as slashdot? this is just fanboy fanaticism.

Posted by Dream Hunter on June 10, 2004 at 12:39 PM (CDT)

2

good artical  

what is your prob dream??

Posted by BIGP in Texas on June 10, 2004 at 1:19 PM (CDT)

3

Good article.  I think the author correctly identifies the current phenomenon that surrounds iTunes.  Early on I predicted that Apple would not only gain market share but that they would also become increasingly influencial in the music world as music purveyors.  (I have been rewarded by my stock picks based upon this early foresight.)

But really, all this should come as no surprise to those who saw the influence of Napster and Kazaa and pleaded with the knuckleheaded music execs to give us a legal way to purchase music online.  What was their response?  Raise CD prices, sue high school kids, and bemoan the loss of record sales completely on p2p filesharing.  What dolts!

As predicted, Apple is indeed gaining influence the distribution of music, no longer having to beg and plead for digital music rights as in the beginning.  I can seriously see the not too distant future of role reversal where music fat-cats seek out Apple plying for prominant positioning within iTunes interface.  By “selling” positions on iTunes interface to music companies Apple may be able to increase revenue for the company and be able to maintain its $0.99 price point.

To me, the unknown remains the yet unresolved universally accepted and recognized digital music rights - 10 burns, 7 burns, 3 computers or 5, 3 computers, do you actually own the songs or will they continue to change the rights on your previously purchased music?

Yes, Apple does seem to be on the same musical cusp that MTV enjoyed in its heyday during the 80’s.  I am optimistic, let’s see where Apple goes.  Let’s hope they don’t screw it up by reworking the digital music rights.

I think the next generation iPods will, obviously, have increased capacity.  I think they may likely be based upon flash memory instead of a harddrive and have all the wireless add-ons.  I don’t necessarily see video on the next gen iPod, but more likely some sort of photo and cover art viewing capability, and of course we will see a growing importance placed upon increasing the actual sound quality of music sold through iTunes.  Perhaps Apple will charge more for tunes downloaded in a higher quality format than say from 128.

Well, at least it will be fun to watch.  Glad we have iPodlounge to help us all follow along.

Posted by Obadiah on June 10, 2004 at 1:49 PM (CDT)

4

Let’s just remember that Apple are more than open when admitting that iTunes barely makes a profit, the purpose is to drive iPod sales where the money comes back to them.
It is premature to call iTunes a phenomenom if it barely makes money!  It is off to a good start, no doubt but let’s see a couple of years down the track what impact it has made…

Posted by snappy on June 11, 2004 at 9:21 AM (CDT)

5

“Apple are more than open when admitting that iTunes barely makes a profit, the purpose is to drive iPod sales where the money comes back to them.”

If you had managed to make a goose that laid golden eggs, would you tell everyone else how to make one?

Steve Jobs is a master of deception. They don’t call him the Reality Distorter for nothing.

I wouldn’t be surprised if iTMS was projected to make significant profits for Apple, both from licensing and from advertising, but that they tried to keep a lid on its profit story for as long as possible to let it build up market share without more competitors entering the field.

Posted by golden goose on June 11, 2004 at 11:40 AM (CDT)

6

“It is premature to call iTunes a phenomenom if it barely makes money!”

phe

Posted by Chimpee on June 13, 2004 at 3:08 PM (CDT)

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