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Apple Announces 25 Million Song Downloads
Tweder writes "On Apple's iTunes site, Apple has announced that music fans have purchased and downloaded over 25 Million songs from the iTunes Music Store. It seems the launch of the ITMS on the Windows platform has boosted sales tremendously." I suppose this is where I am expected to say something along the lines of, "I thought the recording industry said that this business model wouldn't work, that people won't pay for what they can download for free?" So, there you go.
I suppose this is where I should say something like, "The iTunes Music Store wouldn't exist without the cooperation of the recording industry, so even if the music companies had little to lose, they deserve some credit for having faith in Steve Jobs' business model."
Of course, Jobs already said as much himself.
Suppose there was a competitor that didn't give us the garbage x.99 cent "marketing price". In fact, the fee paid was variable! So the extra amount is equivalent to a tip. Some might say that tips make sense with digital goods, where the marginal cost is near zero. Cynics (plentiful and uncreative) at this point just walk out of the room after delivering a few loads of regurgitated garbage. So, the option is $5 to $18. Do you think $5 is the choice taken most? Look here.
-Libertarian secular transhumanist
The real problem is that Steve Jobs mentioned that Apple isn't making any money on the iTunes venture; that they only see profit through the sales of iPods. I'd be interested in knowing what they plan on doing that will change this, as we've all seen too many neato tech ideas go belly up when the investors started wondering where their money went.
if you dont have anything to say...don't say it.
if you think the story isn't worth posting...dont' post it
seriously do we really need a story every time ITMS reaches a nice number? 10 million, 20 million, 25 million...
It's popular we get it.
The real question is how is this affecting sales of ipods since it has already been determined that Apple doesn't make much if any money off of ITMS.
meep
I'd support Itunes if it were its own industry, with its own music, like mp3.com. The problem with Itunes is it takes the flawed recording industry and extends their monopoly. This would be like steve jobs releasing a version of Microsoft Windows for the Mac, and expecting us all to use that. Its bullshit.
If I wanted to support the RIAA I'd buy buying CD's right now. Take a hint!
Support Itunes(RIAA)> but not the artists?
People don't exist to serve systems, systems exist to serve people.
Well, history might tell us something. They didn't bow to the pressure of Microsoft when they came out with their Mac/GUI competitor, Windows, increasing the PC's viability and ease of use. But they didn't suddenly try to increase market share by allowing OEMs. Will things be different this time around if competition heats up?
Kazaa sure has a LOT of music out there. But it is not in a quick accessible format like the iTMS. I can search, sample, and buy hundreds of songs very quickly. Each and every song is complete and prefectly encoded to my satisfaction. I don't have to download entire songs just to see if I like them or even see what genre the songs fit in. I don't have to screw with too many people downloading from one person and sit "in a line" to get the song. I don't have to worry about only getting 10kbytes/s while my connection is 100kbytes/s.
With iTMS I can find things quickly, easily, without a hitch at the cost of only a few bucks a day. Thats cheaper then some people's smoking habbits. It's something I will have around with me always, sitting on my iPod, etc..
A quick comment on the iTMS vs Napster/Others. A feature that a lot of people overlook that I have found quite pleasing is the integration of your purchased iTMS songs with iMovie & iDVD. I don't believe Microsoft's WMA stuff is able to integrate into their "Movie Maker" program. With iMovie I can just drag purchased songs onto tracks, same with iDVD..
The P2P apps have come a long way since their inception but it is still a struggle for non-technical people to come to terms with centralised servers and clientids.
Apple has always enabled ordinary people to use computers. This does not mean that they "dumb down" the technology, rather they lower the learning curve to allow people to at least get on and and working before they need to start seriously learning.
iTunes provides that portal for easy access to online content and it allows people to pay for it. I am sure if Apple had a free peer-to-peer site, we would be talking bigger numbers. But the success of iTunes is part of the overall Apple strategy and design guidleines.
What amazes me is that Apple are not making any money from it and are using it simply to sell mp3 players. How much are the record companies raking in on this and yet still complaining about the death of the music industry?
Why treat your paying customers like (prospective) criminals, when the pirates will simply continue to use uncrippled formats?
Because they have to?
Do you seriously think the music companies would agree on letting a company distribute non-DRM'ed music?
But the option could of course be to not sell music. But maybe Apple wish to sell music.
Beware: In C++, your friends can see your privates!
Hi Adolph. No, I'm paying because I'm really, really busy, and I wanted to hear this album, but just don't have time to hunt around kazaa for all 15 songs off this album for an hour and half, only to find out that half of them were ripped by a 14 year old, so there's glitches in the file, and it ends 8 seconds too short. I'd rather spend $9.99 than an hour and a half of my time.
So, why do you spend an hour and a half to download an album off kazaa instead of $10 to buy it off iTMS? Are you so poor you just can't afford $10? Does your cardboard box need a new roof? By the way, Rufus says there's good eats in the dumpster behind Mickey D's tonight.
We don't have a state-run media we have a media-run state.
Let's see. iTunes has been a hit on the Macintosh. Folks were clamoring for awhile to see it on Windows, too. Now that it's on Windows, even more folks are using it. So far, so good. 25 million songs (I'm probably responsible for around 40 of them) is a lot of songs, no doubt. But we tend to forget what Steve Jobs clearly says in light of all this hype:
The iTunes Music Store makes little if no profit. At all.
Why, pray tell, is this not a problem for Apple? Because Apple uses the iTMS as a Trojan Horse to sell more iPods. And they make a bundle on every iPod. Between the iTMS and iTunes for Windows, there's a lot more iPods being sold nowadays than there were when the iPod was just a Mac novelty (OK, a Windows version came out with the first refresh, but it was Firewire-only and used MusicMatch).
Sure, iTunes locks you into buying songs in AAC format. At least it's an open spec. Most of the Windows jukeboxes lock you into buying Windows Media songs, 'nuff said. And nobody of any significance offers downloadable unencumbered MP3 files. If you buy, you get DRM. Apple's is at least fairly transparent.
What iTMS does prove is that there is a demand for buying one-off songs and permanent downloads. It proves that the subscription model the publishers wanted to force down the buyers' throats was a stillborn idea. It also proves that most of the other music stores that are springing up right now are doomed - because unless there's a secret cabal lined up to screw Apple out of extra money, the only way any of these companies can compete is if they use their stores to help sell high-margin peripherals. Like their own MP3 players.
Now, if some other company comes up with a player that's a far better unit than the iPod, attaches it to a store, and manages to wrestle the lead from Apple, then Apple might have problems justifying staying in the music biz at zero profit. But this kind of thing is right up Steve's alley, and I doubt he'll let this lead slip away without a fight. You know, it wouldn't be the first time Dell walked away from a market with a bloody nose. It doesn't happen often, though.
Plus, as formats go, once you buy into a DRM format they've got you for good. Every iTunes for Windows user is one that'll probably never go to Windows Media.
-- Josh Turiel
"2. Do not eat iPod Shuffle."
I am making the big prediction. Along with the Pepsi giveaway, music downloads are going to be paid for in large majority with things other than cash. You will get them with boxtops, bottle caps, affinity points (frequent flyer miles, credit card points, gas receipts, time share points, disney products etc....), rewards for school fundraisers, anything you can think of will become a replacement for direct cash payment. They will become the ultimate giveaway item. This will become important, because anything to overcome the friction of the credit card purchase on a sub-dollar item will be a major driver for the distribution sites.
This will have the side affect of creating an even larger hit based marketplace. Hits will generate the vast majority of downloads, and the most amount of money for the artists. The return of the single as the product of choice. For most artists and most songs this will generate very little money.
It will be very hard on the CD distribution system as more people get most of their music online. This will also have the side affect of making the used CD industry more difficult as there will be less content available. Which will probably be good for the music industry in the long run.
Legal music, free for the consumer, is going to be the most disruptive force in the industry.
I tried to get this as a story, but it will do as a comment...
The music industry is looking for additional ways to profit off the downloading scene...
As reported by the LA Times, Apple and Time Warner have started offering specially designed Lord of the Rings CD-Rs.
These limited edition blank CDs are specifically designed for users purchasing the Lord of the Rings: The Return of the King soundtrackfrom Apple's iTunes Music Store.
What I am going to do is wait until they provide "pre-burned" CDR's like RedHat does... That would be cool.
It's interesting, I have a friend who works for one of the major music labels here in Australia, and very strongly advocates that the only real reason the label's are against the whole mp3/online thing is becuase it removes both revenue and the gross ability to influence the market from those major labels. It's difficult to setup a distribution chain, advertising and marketing model, instantly, to compete with the existing companies. However with the advent of the internet, competition is more likely, and that same competition could well be motivated to do a better job.
It's understandable....only time will tell if it happens, and that will be directly influenced by the attitudes of major artists towards record labels in securing contracts.
One can only presume that there will similarly be successful online mp3 sites, who have the ability to see musical ability in artists that identifies with the markets taste, and have power in the music industry. Will it be Sony/Universal/EMI/....or will it be the new tech startups......
In the mean time, the argument is still valid that many people will still copy mp3's when they haven't paid for them, even if they were 10c a song. Argument is also valid that whilst those people exist, they will usually put more effort into finding a way to crack protection than actually spending what should hopefully become, a fair price for music online.
Note to industry: bloody hell music is over priced!
Check out this discussion in slashdot, 1999 about custom CDs - some of the comments actually suggest creation of an online store and make the (dire) prediction that the RIAA would not like it, and that it would take an exceptional salesperson to talk to them about it.
Here's the article
Looks like the 'exceptional salesperson' was Steve Jobs. Wonder if anyone imagined back then that the RIAA would turn out to be so vindictive!
"When the only tool you own is a hammer, every problem begins to resemble a nail." - Abraham Maslow (1908-1970)
Yeah, you've got a new switcher right here, and I followed exactly this chain. First got iTunes/Win, then got an iPod (nearly the same week) and quickly started looking at iBooks. This from someone who has been using PCs for 10+ years, and used to layer scorn on Macs :)
I'm very happy with my OSX now, and considering one of those shiny dual 1.8 G5s...
No. 128kb/s isn't that good.
I love it when people forget we're talking about AAC, not MP3. 128 kb/s AAC far surpasses most 192 kb/s VBR MP3s.
Option-Shift-K.
iTunes only really runs on Windows XP (forget what they tell you about Win2K).
Win XP only makes up about 8% of the OS share on home PCs, which is only about three times higher than the share of OS X.
When you look at it that way, the numbers aren't too out of whack.
You can tell a great deal about the character of a man by observing those who hate him.