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iTMS Named Fortune's Product Of The Year

Demolition writes "To go along with Time Magazine calling the iTunes Music Store the Invention Of The Year, Fortune Magazine has come along and proclaimed iTunes Music Store as the Product Of The Year. As it says in the article, 'With the success of its iTunes Music Store, Apple is almost single-handedly dragging the music industry, kicking and screaming, toward a better future.'" Also, Fortune named the G5 one of the 25 Best Products of the Year for Design.

36 of 356 comments (clear)

  1. What's next by gid13 · · Score: 1, Interesting

    Now as soon as it starts making profits in forms other than increased iPod sales and getting more money in the pockets of artists instead of labels, I might consider thinking about becoming interested in using it. :)

    1. Re:What's next by gid13 · · Score: 2, Interesting

      1) Quite a good point. Not much to say to that, really.

      2) I don't EXPECT anything. But I'm not buying from Apple or anywhere else until they get their shit together and stop doing what they're doing. However, I think Apple forming an artist-friendly label is MUCH more likely (or at least advantageous) than artists doing it themselves because artists haven't got the money to start it and Apple could split the money gained by muscling out the RIAA (if it somehow could) between themselves and the artists.

    2. Re:What's next by Master+Bait · · Score: 2, Interesting

      Apple should co-publish with Apple Records. I always wondered why Apple Computer never tried to cozy up with them and be money-making friends.

      --
      "Only in their dreams can men truly be free 'twas always thus, and always thus will be."
      --Tom Schulman
    3. Re:What's next by Anonymous Coward · · Score: 1, Interesting

      >>As far as the artists not getting much money out of the deal... exactly how is that any worse than what they already had?

      I thought that was the point. iTunes just reinforces the entertainment cartel's pricing model (meaning meager profits for bands), except now I can buy songs a la carte.

      >>And of course it almost completely ignores indie labels that are now getting people's music on iTMS.

      Indie labels have always made better money per CD. They can get a little more exposure now via iTunes.

    4. Re:What's next by JudgeFurious · · Score: 3, Interesting

      Artists haven't got the money? Bullshit! Madonna could start one herself (and this is not an endoresment of the bitch, just pointing out that she's got a lot of money).

      MC Hammer (associating this name with the word "artist" is admittedly a reach) could have done it easily except his dumb ass felt that he needed an "entourage", several houses, enough jewelry to tip the planet out of it's orbit, and a car collection first.

      They're just two of many who've had the chance to start something like this but instead they get the bucks and say (mostly) "fuck the ones that didn't". Their stories can be seen weekly on VH1's "Behind the Music".

      Many successful artists could do this and should do this long before it becomes Apple's responsibility. Let the relative handful who actually made more bank than they can spend start an artist friendly label that gets more money to the person who created the work. Apple will be doing fine to sell the product and get it's (more than fair) share.

      --
      Appended to the end of comments you post. 120 chars.
    5. Re:What's next by the+argonaut · · Score: 2, Interesting

      I would define "success" minimally as "being able to make enough money to support yourself".

      From most of the people I know, I would say that being in an "indie band" is only something you do in addition to your day job because you would starve otherwise. Most have ambitions to at least be able to one day support themselves making music.

      --
      fuck you.
    6. Re:What's next by Golias · · Score: 2, Interesting
      I would define "success" minimally as "being able to make enough money to support yourself".

      I, however, would define "success" minimally as "making music that would be worth listening to." But for those who's asperations revolves around quitting their day jobs, allow me to present the only formula that has ever been found to work consistently, no matter how the business is being run...

      How to make money as a musician:

      1. Be pretty.
      2. Be capable.
      3. Sell out.

      Any questions?

      --

      Information wants to be anthropomorphized.

  2. Why not? by cgranade · · Score: 4, Interesting

    It's a damn fine product... spawned almost as many ripoffs as the iPod itself. Plus, it has the opportunity to make money if the RIAA is cut out. I mean, there's no reason that iTMS can't offer indie music as well, and then they'd be getting higher margins on the indie music, so Apple'd push it more than the RIAA tained sh**. In short, iTMS is a great product. Stable, visually attractive, functional, not DRM crippled (I'll accept iTMS's level of DRM), wide variety of music available... need I go on?

    --

    #define DRM chmod 000

    1. Re:Why not? by dbirchall · · Score: 2, Interesting
      Actually, having browsed iTMS pretty extensively once, I discovered that the most extensively iTMS-ed act out there (at that time), with something over 2,000 tracks available on iTMS, was... an indie band!

      Granted, it wasn't just any indie band. It was Pearl Jam. Not so long ago, they told their then label in no uncertain terms exactly what it could shove exactly where. They've been selling recordings of their concerts for a few years now, largely through their web site... hit http://www.pearljam.com/downloads/ and they've got links to iTunes all over it. All the studio albums and every track they played at every show they played from February through July of this year. Want 36 different live versions of your favorite Pearl Jam song? No problem!

  3. Better future? by Anonymous Coward · · Score: 4, Interesting

    Apparently some artists don't agree. Many are arguing that people will pay one or two dollars for only one or two songs from an album, instead of buying the whole thing. But then again, why should we go to a store and pay for an entire album when we only want a few?

    1. Re:Better future? by tholomyes · · Score: 2, Interesting

      I'm not so sure that this is so much the artist's concern-- I would think that it would be much harder to make money selling things where 90% of the profits go to the reseller, the distributor, and the record label. This is why a lot of major label artists spend their time on other money-making ventures, like MTV videos, endorsements, and (oh yeah) touring...

      The iTunes store is starting to give independent record labels (K, Matador, et. al) an equal footing with these big labels, but the independent label artists will get more of a fair share from their record company.

      The artists that complained the loudest (Madonna and U2 were on the list, I believe) were not the ones that have been the bands making those comprehensive concept albums of yore. But given a choice between this and P2P, the Top 40 artists should resign themselves to their ubiquity.

      --
      When did the future switch from being a promise to a threat? -C. Palahniuk
  4. bullshit by larry+bagina · · Score: 4, Interesting
    Napster proved that tens of millions of consumers were eager to download digital music from the Internet. They just weren't inclined to pay for it

    Bullshit. Napster didn't prove they weren't inclined to pay for it, even if people wanted to legitimately purchase music downloads, they couldn't.

    Napster proved the demand for downloadable music exists. I like iTMS. I use iTMS. I give jobs credit for convincing the suits, not for a prodcust or invention of the year.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

    1. Re:bullshit by Quasar1999 · · Score: 5, Interesting

      Damn it... I want to BUY music from iTMS in Canada... but oh no... can't do that... gotta go through the Canadian ripoffs of it... like PureTracks... They have next to no selection, only available in DRM'd WMA format, that cannot be played on MP3 players... and the kicker... I upgraded my motherboard, re-installed Windows (a requirement when upgrading motherboards), and lost all the songs I downloaded and payed for... their response... It's your responsiblity to make backups of your files and Digital certificates... WTF???

      iTunes does not have any of these problems... yet I can't use it in Canada... I can buy an iPod, but can't buy music for it. I have no choice but to download music without paying for it... and I've gone through all the damn hoops trying to legally purchase music... The government and the Canadian version of the RIAA (whatever the hell they're called) has successfully made it so difficult for me (and all Canadians with tastes for music other than the crap on the radio) to buy music that I have no reasonable alternative but to continue to get my music from the underground...

      Napster may have proven that there is a demand, but I'm sure I'm not the only Canadian that has proven we are willing to jump through a crap load of hoops to try and buy music instead of just downloading it for free.

      So who's at fault here? Apple for not selling music outside the states? The RIAA for being anal? The Canadian government and their damned heritage law (forcing everyone to download at least 50% canadian content)? Or is it me (and people like me), that put up with all this crap, trying to go legit, and hitting a brick wall?

      --

      ---
      Programming is like sex... Make one mistake and support it the rest of your life.
  5. Yeah... by Kircle · · Score: 1, Interesting

    'With the success of its iTunes Music Store, Apple is almost single-handedly dragging the music industry, kicking and screaming, toward a better future.'

    Where the RIAA gets 80 cents off the dollar if i remember correctly.

    --

    -- Kircle

  6. iTMS vs Napster by ryanw · · Score: 4, Interesting

    I think Napster must be sinking. I received spams from them offering several free tracks if I were to sign back up with them.

    I tried out napster for a few days. I felt it was a pathetic attempt at copying the iTMS. Things were sorted incorrectly and information was scattered around making it almost impossible to find anything I really wanted. And to top it off they're spamming me ...

  7. Re:Well it's the marketing scheme of the year by James_G · · Score: 2, Interesting
    People pay more, for an inferior product and give up most of their legal rights in the process, all for the "convienience" of downloading music ( which really doesn't take much less in terms of time overall than walking into a music store the next time you happen to be in the mall).

    Except at the mall you can't buy single tracks off an album. As far as album sales go, I agree with you. I'd buy the CD from a regular store first. However, there are any number of single tracks I've bought from iTMS simply because I didn't want the entire album. I paid 99 cents for each of them and that works nicely for me.

    It would be interesting to see the ratio of single tracks to whole albums being bought from iTMS, and this is where the labels need to worry. If people start buying only the popular songs and not the entire album, they're going to have to start putting more effort into producing music rather than just churning out production line dreck like they do now.

  8. Not all songs can be purchased individually by AHumbleOpinion · · Score: 2, Interesting

    I believe the artist gets to decide if songs can be sold individually. Apple recommends doing so but it is not required. I recall some folks complaining that the one song they wanted would be $9.99 since they had to buy the whole album.

    1. Re:Not all songs can be purchased individually by CanSpice · · Score: 3, Interesting
      iTMS do require that at least some songs be available individually, with the exception that tracks longer than 7 minutes can only be sold as part of an album. This is Apple's rule, you'd have to ask them why.

      Then how did I buy Rhapsody In Blue (13:44 long) individually?
    2. Re:Not all songs can be purchased individually by CrazyTalk · · Score: 2, Interesting

      I can find no rhyme or reason to Apples pricing structure. There are 4 second "Songs" which are really just the intro to another song that still cost 99 cents. I found one album that consists of two 20 minute songs (Vangelis, I believe) and each 20 minute song was just 99 cents, or the whole album for $1.98. Buying the album is seldom if ever cheaper than buying the individual songs - I would think they would offer some form of discount. Espcially for older albums, 10-15 bucks is no bargain, when I can usually buy the physical CD for less than that.

  9. Re:Open Source Music by gl4ss · · Score: 4, Interesting

    dude, there's shitloads of great music for free, legally.

    there were before mp3's as well, if there weren't mp3's i'd still be listening to .mod/.xm/.s3m/.sid/.stm/.it all day long and enjoying it. if rips of commercial songs weren't available i would listen to the free ones, i would not go out and buy just more cd's. i don't NEED music industrys songs, in fact i wish they would crack down with some magic(that doesn't exist) and stopped distribution of commercial music on internet as it would give the independent artists doing it for the fun of it much more exposure than what they get now.

    that's what pisses me off about the "but without money from records nobody would create music!!" comments, it's proven to be false. you don't need to be doing it full time, and if you do you're much more probable to be better off doing gigs(as most are). maybe there wouldn't be ghetto dreams about stardom and fast cars and drive by shooting rivaling labels artists, but that would just be an added _bonus_. riaa(that is, recording companies and local equivalents in other regions) act like you couldn't live without them. if you want a living from music, go get some music education and become a music teacher(that's the most probable way you end up really living off from music).

    --
    world was created 5 seconds before this post as it is.
  10. integrated, easy and hassle-free!! by velkr0 · · Score: 3, Interesting

    there is just something about iTMS, that i like.

    it's seems very integrated, easy and hassle-free!

    sure, i haven't actually purchased a song through it, since it is currently not available in canada.

    but, i have browsed though it and taken advantage of the preview feature a few times.

    i hope the doors open in canada for iTMS soon... before i have to pay a levy on my digital media too!! see

  11. Cant wait to see how they will do it... by rcastro0 · · Score: 4, Interesting

    Cant wait to see how they will deal with international expansion of this great "invention". After all, if 99c per track is a good deal in the US, it is a lousy deal in countries with a weak currency and lower income, such as Brazil, Russia, India, China, etc...

    In general recorded audio and video material will be price adjusted to reflect differences in local purchasing power. For example, the Lion King Special Edition VHS goes for US$ 20.99 in the US. In Brazil the same *legit* product goes for about one third of that price (R$ 24.60 which is worth US$ 8.40 in today's exchange rate).

    This difference in pricing has to be done in order to "milk" different local markets, each with a different pricing point requirement. This is, after all, the motivation behing the DVD region coding scheme (not realease dates, mind you).

    Now, it will be interesting to see an internet site selling buckets of bits for different prices depending on where (it thinks) you physically are, won't it. Of course they could leave the third world to be served solely by that most efficient institution, the pirate market.

    --
    Quem a paca cara compra, paca cara pagará.
  12. Re:How can it be an invention? by DaveCBio · · Score: 2, Interesting

    Because mainstream media is quite clueless about anything digital.

  13. Bands, take note! Apple will talk to you by Anonymous Coward · · Score: 4, Interesting

    I'm posting this anonymously, sorry.

    I got a band I will not mention listed in Itunes. The parent poster is morose for the wrong reasons.

    Try it. Apple, surprisingly, is not all that horrible to deal with. Only moderately horrible.

  14. Re:Well it's the marketing scheme of the year by kfg · · Score: 5, Interesting

    That is convienience, not time overall.

    Most Americans are horrible at "time and efficiency" analysis of their own lives, generally "saving" seconds at the cost of later hours and for no particular purpose.

    Much as they the gambler thinks he "won" ten bucks on the lottery the other night and ignores the five hundred he spent to become a "winner."

    People who sell convienience make a good living off of this tendency. You spend money to avoid irritation, not save time, and don't even count the time you have spend to earn that money into the equation.

    It does not take you only two minutes to download a song. You are not counting your losses, such as the time to fire up the app and find the song.

    Your milage may vary, of course, but in my case (and in the case of most Americans I would posit)even if I have to make a special trip to the store (open 24/7) for music I'm there inside of ten minutes by bicycle and can do my grocery shopping in the same store while I'm at it, thus saving the time I would have otherwise spent on the special trip to the grocery store.

    Or, conversely, I can go do my grocery shopping and pick up several CDs of music at no more expense in time than it takes to toss them into my cart and the additional time it takes to ring them up while ringing up my groceries.

    No, I'm afraid that, overall, what you save isn't so much time as it is saving having to move your butt out of your chair. Which is a different issue, and which, in all likelyhood, you have to move anyway to earn the money, so just stop at the music store you pass on your way home from work.

    Saving irritation ( and needing to have it now is an issue of irritation, not time)is not the same thing as saving time and/or money, and more often than not must be payed for with greater irritation and money later.

    KFG

  15. No fan noise. Practicality to spare by phillymjs · · Score: 3, Interesting

    I've set up two of these in a very quiet conference room. When running normally, they barely make a peep. When the monitor is asleep, you wouldn't even be able to tell it was on without the power light on the front panel.

    When the G5 is in target disk mode, however, the fan control software does not load. The fans start faster than normal and rather quickly ramp up to full speed-- presumably that is a fail-safe in the hardware. When those fans are going full blast, you can feel the air moving for quite an impressive distance behind the G5.

    As for whether that many fans is overkill or not, look at it this way: Apple's previous Power Mac case form factor was in use since 1999 (about 4.5 years). With the G5 enclosure, I think it appears overengineered to us now but was designed with an eye toward housing future CPUs in years to come-- CPUs that will really need all that cooling capability.

    ~Philly

  16. Re:invention? by Anonymous Coward · · Score: 2, Interesting

    Pressplay, Musicmatch, etc. they all had the iTune Music Store idea before Apple and implemented it.

    Though some record companies did sign on to them, they didn't make much money though.

    They didnt have the marketing and media muscle though.

    Sorry, iTunes music store is not an "invention" it's just well marketed. Somebody else invented it.

  17. Re:Cute by Squareball · · Score: 4, Interesting

    Partially correct. The record companies don't 'give' tons of money to potential bands. They lend it to them against future sales. So if your band gets signed and puts out an album that doesn't sell, you are on the hook for the money that they lent you to produce the album and tour to support it. The sad part is that some times great albums get put out but never pushed by the label. So the artist ends up worse off then when they started and no one really gets to hear the music.

  18. Re:How can it be an invention? by szyzyg · · Score: 2, Interesting

    Every single one of those services tried the same deal that Apple got - everyone suggested sales at 1$/track - the record companies all said there was no way in hell they'd ever agree to that. So other angles were tried - subscription services and things - then of course Pressplay and Musicnet were created and we all said that nobody would go for it.

  19. is an online store a 'Product'? by Chuck+Bucket · · Score: 2, Interesting

    really, before they won for the 'invention' of an online music store (like they had the first one?) and now it's the best 'product'? Don't get me wrong, I have two macs at home (one running Gentoo Linux) and I think iTMS is a "good thing (c)" but come on, how is it a 'product'?

    Now the G5 winning for being one of the 25 Best Products of the Year for Design, that goes without saying; that thing is perfect. I got to play with one a few weeks back, opened it up and got to gaze inside. One of those running Gentoo would fit perfectly under this desk!

    CB

  20. Re:Not to belittle your excellent point, but by wareadams · · Score: 2, Interesting

    This is the point, perhaps there's zero incremental time involved in picking up a CD at a grocery store which most people go to frequently, but the selection is pitiful.

    On the other hand a month or so ago I heard a clip from Son House singing John the Revelator on NPR. I loved it, so I left the a message for myself on my voice mail and picked it up from the iTunes store in 30 seconds after getting to my computer.

    I would have had to drive all over town to find that song, or more likely search Amazon. And in those cases I would have needed to figure out which album to buy. At 99 cents it was an easy choice to just grab the song.

    I've bought more stuff from the ITMS in the last few months than record stores in the last three years because of this.

  21. An experiment to try at home... by oaklybonn · · Score: 4, Interesting
    Make a tube of your hand (like you were grasping, say, um, a bannana. No really, nobody's watching.) Blow through this tube gently; notice how quiet it is. Now blow against a your flattened palm. Notice that it is appreciably louder.

    The design of the G5 is to use two fans in each zone, one gently blowing, one gently sucking. The result is that you're never slamming air against a wall, which is actually where a lot of the fan noise come from.

    The 2.0ghz G5 chip consumes97 watts of power

    From a cursory investigation, a Pentium IV seems to take between 60 and 100 watts

    As to whether its revolutionary, I doubt it - its just solid engineering without concern with having to fit old form factor bits into the box. (PeeCees have much more homogenous designs, since Macs always come from a single vendor.)

  22. Re:Open Source Music by Anonymous Coward · · Score: 2, Interesting


    Um how did that get modded a 5, interesting? How many times does somebody have to use the stupid - music must be free logic. I am a musician and to be honest, it is hard fucking work/with a day job - just to be able to have the tools to create my music - let alone try and record it for others to hear.

    Jesus - the stoned masses are stupid.

    WAKE UP DUDE - it costs money to make music and becoming a music teacher is not logic here - I want to record my songs/ideas and create more, it's not all about playing live, there is art in recording science.

    Having a dream is what America is all about. I want to do nothing but play music and support myself from it one day. I have my day job still but one day I dream of selling 100000 cd's. Yep my DREAM.

    I write songs on my acoustic guitar($500.00), and my songs are mine. I write songs for friends - but they still give me songwriting credits. THIS IS NOT A FREE WORLD - ideals are nice and so is PEACE AND LOVE - but that doesn't really pay the bills now does it.

    Why do you people think that artists make money touring? I hate to hear that same sad argument over and over. You DON'T make money on tour. You are lucky to break even. LUCKY!

    I'd like to see you give away your work, but then again bong loading doesn't require a lot talent.

  23. Re:G5 Design - noise? practicality? by YouHaveSnail · · Score: 4, Interesting

    how are you finding the noise level? Do you find that the fans ramp up very often, and if they do, do you notice a big difference in volume?

    The G5 is dramatically less noisy than the G4 (mirrored doors). The fans on my single-processor 1.8GHz model almost never run fast enough to notice, or even hear, during use. When the machine wakes from sleep, the fans do spin up for a moment to the point that they sound like, well, fans. But then they slow down again and get plenty quiet. And the fans also run quite a lot when the machine is in FireWire disk mode (for those that don't know, most Macs can start up in a mode where they function as external FireWire disk drives). In disk mode, the fans start off fairly quiet and eventually increase to what must be their maximum speed (and noise level). Other than waking from sleep and disk mode, though, I hardly hear the G5. Same goes for my buddy's dual processor 2.0GHz G5.

    Are we likely to see the "multiple zone" principle copied into cheap Wintel enclosures?

    The three zone cooling system seems to work really well. As described above, the fans don't seem to need to spin very fast to move enough air through the machine to cool the processor(s) withouth making much noise. I'd guess that the G5 processor produces less heat than a Pentium, as I've always understood that the Pentium is a significantly larger chip than any of the PPC chips. But I could be wrong. Take a look at the power consumption figures for each to get a better idea.

    As for whether you'll see this sort of cooling system in Wintel machines, I'd say it's a definite maybe. As soon as you pop the side panel off a G5, you realize that machine is one very carefully designed unit. The entire front and rear panels serve as air intake and exhaust panels, respectively, and the processors and their very large heat sinks are placed at the constriction in the middle, so that air flows quickly over them. To make this work, a manufacturer has to be able to control the case design, placement of components, heat sink design, fans, etc. You can't just design a case with mesh front and back panels and slap in any motherboard. I don't think most Wintel buyers are willing to pay for that much design. A few desktop makers like maybe Sony could probably pull it off. More likely, I think you might see this sort of design appear in higher end machines like servers.

    There's a lot more about the G5 design that's elegant than just the case. For example, the top hard disk drive mounts up inside the case in a position where it can't slide straight out. It looks at first like it could be a problem to get that drive out, but in fact the guide rails that hold the drive just drop the drive down, and it pops out with no problem. You can remove most of the components without tools. The side panel makes an incredibly satisfying 'click' when you press it into place. The case can be locked closed with a padlock, but the hasp for the lock folds down under the latch when you're not using it, so that it doesn't spoil the clean, flat look of the back. The power button is significantly improved over the G4.

    In short, the G5 is probably the best designed machine Apple has produced in years, maybe ever. I wish Apple would get the G5 design team to build a car!

  24. Re:Open Source Music by Graymalkin · · Score: 2, Interesting

    You can make money off your music without selling out to the "man". Selling records is a way to get your music to people who aren't at the same place you are when you're playing your music. A single CD can end up in the hands of dozens of people exposing your music to all of them and potentially winning some fans.

    --
    I'm a loner Dottie, a Rebel.
  25. Why Napster, MusicMatch, etc. will fail by Anonymous Coward · · Score: 1, Interesting

    Apple has stated that the iTMS makes no money. It's a loss leader for selling iPods. That's very bad news ... for Napster.

    If Apple cannot get iTMS to make money, it's unlikely that Napster will be able to, given that the record companies have offered them essentially the same deal (and hence the same revenue percentage). iTMS survives because Apple has *another* product, iPod, which makes up for iTMS's loss. Napster does not have such a product. Napster sells music in WMA format, which is, for purposes of discussion my post only, "open". Meaning that Napster can't charge the MP3/WMA player manufacturers a fee for playing songs downloaded with Napster. So Napster can't get a loss leader. This is the case with all the other little iTMS wannabees as well.

    One company has a chance: Microsoft. It can generate a music store with buckets of money which can stay afloat as long as necessary. The loss is worth it to Microsoft if WMA destroys AAC and takes over the world as a result. So they have a loss leader of sorts. And Microsoft has buckets of money. That's Apple's competitor, not Napster. Watch for it.

    One last thing: only one store works with iPod. A myriad of stores work with WMA devices. This would be a problem for Apple if it weren't that the iPod was so phenominallly successful. Now as a result Apple has the AAC market all to itself, while the various wannabees have to divide up the WMA market, so their total revenue may be smaller (assuming the AAC market is sufficiently large in the first place of course).