ITMS and how it has changed the music industry
Apple has always been a key leader in innovation. I don�t have to tell you that. Look at the iMac G4, G5 Powermac, and iPod. Even Apple�s software and OS are the leaders on innovation and open standards; so it should be the case that Apple is the company that brings the next step in music distribution. In the past 30 years we have seen many mediums of distribution come and go. We had Vinyl, Lps, Cassettes, and CD. There were some other products like Sony�s Mini Disc, and DVD audio, which is used by a few people. Our lives are going digital, and Apple had that right when they introduced the Digital Hub Strategy a few years ago. It only seems logical that the next music distribution is online. You can see, when the Recording Industry of America did not supply a digital distribution, people turned to companies like Napster and networks like Gnutella. Even after services like PressPlay and the return of Napster it seems the only company selling music is Apple. That�s right; Apple Computer is the leader of digital music distribution. Why? Innovation.
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The media, as always does not give Apple enough credit. They will report the news, and lately have been positive when it comes to the iPod and the G5, but have not blatantly come out saying, this will change the industry and move us forward into the next generation of music sales. They quietly say, �Apple has sold 30 million songs in just seven months. What they don�t see is Apple is the key leader. Apple, as always, took an industry that could make money and was not well marketed and made everyone want it. That is Apple for you. They know what you want before you even think about it. We did not know we needed a graphical user interface, or a mouse, or even a portable music player, but they brought them to us, and now we thank Apple for that.
As the general public gets broadband, and is aware of this new way to purchase music they will definitely jump on the bandwagon. Apple is doing a good job market it also. With their AOL deal, members can log on with their account and buy music, and AOL Music has direct links to iTMS. Also the Pepsi deal where Apple and Pepsi will give away 100 million songs under Pepsi bottles. Everyone that buys Pepsi has a one in three chance of winning. It is cool but one song is not that big of a deal. The cool part about the deal is people that find the cap, can go on iTMS and find out how easy it is to buy music online.
Where Apple wins the market in digital distribution is made up of many things. For one, the software is right. Apple is known for their software with award after award for best software. They have intuitive/ easy to use interfaces and anyone can hop on a Mac and do everything that you would need a computer science degree or / and every book at Barnes & Nobles on Pcs memorized to do the same thing on a PC. Even then, the software might not have all of the functionality. Of course we know that Mac software is easier but the key thing that makes industry experts and companies (from a business perspective) love the iTunes Music store is how they distribute the music. �They don�t treat you like a criminal�, says one industry expert. The only thing left for Apple to do is let everyone know about them.
The only problems left that Apple is taking care of is the amount of songs available for download and the availability of iTMS to broader markets. iTunes Music Store started out with 250,000 songs and has 500,000 this month. The number is growing. When iTMS�s music catalog matches the catalog of a Virgin Megastore or even your local CD store, then more people will turn to Apple. You can�t argue with 99� per song and $9.99 an album. The second thing is bringing their store to broader markets. ITunes for Windows was the first step. This opened iTunes to a lot more people than the closed Mac market. The second initiative is bringing iTunes to other countries. When large countries like, UK, Germany, China, Japan, Canada and so on can log on to iTMS, Apple will certainly roll in the big money.
Many PC users still don�t know about the store, and the Pepsi Super bowl advertisement will tell everyone about iTunes and cause Mac users to drink a lot of Pepsi. Other things like larger catalogs and more people getting high speed Internet will boost sales. The last thing is bringing iTMS to larger markets. I definitely think this will be the next medium for buying music. It saves the record industry millions. They don�t have to manufacture Cds, or other forms of media; users just go on their computer and download their music. And iPod will become a standard thing to have just like a radio, and iTunes will be installed on each computer. Unless another company, does what Apple is doing and better, I see Apple Computer on everything that plays a note. Straight to iTunes distribution for record companies, and promos for upcoming albums done all on iTMS. The future is now, and our company is making it happen.
