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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
Yah, 25 million songs is VERY good, which works out to be about 2.5 million albums, but is Apple making any profit yet? My understanding was that Itunes was designed to sell Ipods and is making very, very, little profit due to all of the fees it has to pay to the RIAA and the owners, etc.
"Jeremy, you need to get to an internet cafe and cut and paste some appropriate sentiments about me from the world wide
So? There's probably more people that copy friend's CDs than buy their own and I don't see anyone bitching about that anymore.
'Standards' in computing only impress those who are impressed by things like 'standards'.
I disagree.
Must people, like me, who were big buyers of retail(brick and mortar) music went to downloading music online for free because it was easier than heading down to the local music store.
It wasn't that I wouldn't pay for the music, it was just that it was easier to download it with a better selection of music. Now there are even easier ways to download music such as iTunes and other related services. I prefer to use them now than battling with file sharing systems. So now that it is the easiest meathod for me, that is what I use.
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..
What's the big deal?
Is this truly the only Earth I can live on?
The problem with Itunes is it takes the flawed recording industry and extends their monopoly.
Guess what? The iTunes Music Store has hundreds of thousands of songs from independent labels. Labels that are not members of the RIAA. Including many labels that give their artists much better deals.
I'm a jazz fan, so one of my favorite labels is Concord Records, with such artists as Poncho Sanchez and Karrin Allyson. Go ahead, log on and listen to them, you might enjoy it. And supporting them doesn't support the RIAA!
RIAA Radar is a neat site that lets you search for your favorite artist or label and find out whether they're RIAA-free or not.
I always bought music because I liked it and wanted to be able to listen to it when I wanted to, over and over again, not to support the RIAA.
Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
#1. iTunes features many indie artists. hell, i just got the shaggs first record on it. #2. iTunes is showing the major labels that its a waste of money to record a whole album with a talentless artist when all anyone really wants to buy is a single. this will leave more money for acts that can put out albums worth of songs and develop over time. #3. if the music sucks, it still wont sell.
The success of ITMS is that it shows that Jobs understands two things the RIAA does not: microeconomics and marketing. Think about it: iTunes Music Service isn't competing with the PressPlay, Napster 2, Real, or any of the other turkeys who assumed that people would simply want to buy their unfriendly, ad-crippled, bloated services out of a sense of duty, or just because they were feeling guilty.
No, I believe Apple intended all along to compete with a different class of "competitor:" Kazaa, LimeWire, AIMster and the others. Apple, in essence, pretended it was competing in a commoditized market, by which I mean a market in which the price of goods are in free-fall (or in this case, actually free). How does one compete in a commoditized market? By differentiating the brand with things the other commodity players can't provide: quality ("CD-quality" tracks), convenience (reliable, near-instant downloads), ease-of-use (easy searching and browsing), and bundling (integration with iTunes). This is something the other (albeit "illegal") competitors cannot match.
Folks can -- and undoubtedly will -- argue until the cows come home about whether ITMS is simply perpetuating the RIAA's cartel. (I personally feel that the RIAA's destruction is as pre-ordained as the setting sun, but that's a thread for another discussion). But you have to give Jobs credit for outside-the-box thinking, and for a willingness to take on an unconventional class of competitor.
Let me clue you in on something, outside of Slashdot, very few people know what DRM is. They simply don't care unless it gets in their way. That's where Apple has succeeded the most. It's hard to get to the limits of what they let you do with the music unless you're trying to mass-duplicate CDs.
I have a shitty sig!
Why treat your paying customers like (prospective) criminals?
Stores and businesses have been doing that for years and years. Any store that doesn't just put a box of their goods out on card tables in a vacant lot with a drop box to put payment in is 'treating their paying customers like (prospective) criminals', no matter how different the rhetoric sounds the way you put it.
A Good Intro to NetBS
That option sounds like business suicide. One option they could have, though, is to sort by individual label (since they already have the labels stored for each album), so you can pick and choose which ones you want to have show up.
I'd really like to be able to customize the recently added albums and such in this manner. Of course, since this is a new service, I expect more features of the type will becoming (hopefully not for a monthly fee).
40% of the purchase goes to iTunes, 30% goes to the label (which may or may not be an RIAA member), 10% goes to an intermediary middleman (if one exists) such as Amazon.com or AOL, 8% goes to the publisher (I think this is ASCAP, but I'm not really sure), and the remaining 12% goes to the artist. According to the article on Business 2.0 entitled The MP3 Economy: How labels and artists divvy up your MP3 dollar that these statistics were taken from, "twelve percent is average, but successful bands often hammer out better contracts. In many major-label contracts, charges for 'packaging' and promotional copies are subtracted from the artist's cut, leaving the talent with a measly 8 percent. BMG, Universal, and Warner have announced plans to do away with such deductions for digital downloads."
-Matt
Duke '05
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.
Not too busy to post on slashdot though, I see ;)
Guess some things ARE worth spending time on.
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.
All you're paying for is convenience
Nope. You are also paying for
1. Quality - You can be sure that the song you just downloaded doesn't go like "What the f*ck do you think you're doing!"
2. Peace of mind - Nobody is going to come to your home and sue you for copyright infringement.
3. Moral Satisfaction - You actually PAID for it, rather than copying the art work of someone else without permission.
and more...
getSexySig();
iTunes is currently having 1.5 million tracks downloaded from it's store each week. This # will rise even more right after the holidays due to everyone claiming their iTunes Music Store Gift Certificates. That doesn't even include all the iPods they have sold thus far. Most places like CompUSA are already out of stock of the 20-30GB iPods. So this to me is sign that iTunes Music sales will probably spike right after Christmas. Right now the big rumor about the 4th Gen iPods which are coming in Jan. will not just include the normal bigger storage compacity but a ePod line in the $100-200 range. Apple is already said next yr they will open a Japan, Australia, European, and Canada music store for next yr. I and alot of people think that some these stores will open in Jan. while the rest will open about 3-4 months down the road. This would cause very large influx of downloads per week. Also starting in Feb. Pepsi will be doing it's 100 million iTunes give away which will definitely make Apples overall #'s go up and up. Right now it's been rumored that Pepsi will also be giving away 600 iPods with Pepsi logo iSkins and each will be #'ed. I believe Apple will hit 100 million by Jan. and if the McDonalds promo iTunes deal goes through those #'s will just continue to increase. So no I don't see it slowing down. On a side note it's nice to see Winamp 5 guys went with AAC from Dolby. Which just goes to show the AAC std is catching on.
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!
I'm sorry if that offends you. I know I should just leave the car open, because anything else is simply assuming that all the people walking the streets are criminals.
I guess I'm just disrespectfull of my fellow man.
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)
The only way independent labels can compete is with the RIAA's off the service
this can't be right. when you're on a service like that where you can pick and choose tunes, marketing dollars etc ought to be LESS powerful and it becomes a more even playing field for the independent labels? it doesnt take me any longer to click a link to a non-RIAA label song to one that is.
It's worse than it looks. In the first two weeks Apple sold two million songs. It's been seven months and they've only sold 25 million? That's a million a week the first two weeks, and then only 23 million in the next 28 weeks. If current trends continue, we're looking at a significant dropoff of song downloads. The writing is on the wall, folks; Apple is dying!
Exactly. The music industry's original reason for existance was lowering the barrier to access to music. Before records became commonplace the only way to listen to music was to see a live performance. In short, you had to dedicate either a lot of time or a lot of money if you wanted to enjoy music. Then the record industry came along and suddenly people could affordably listen to their favourite music whenever they wanted, as often as they wanted. It led to the decline of live music (live music used to be EVERYWHERE), but it made music more popular.
The inherent problem with the music industry is that they have forgotten they should be making it easier to listen to music. Obtaining music nowadays is no easier than it was 30 years ago, and in fact, it's become slightly harder due to raised pricing (more than inflation), the reduction of music sampling opportunities (less music on the radio, no in-store sampling), and the introduction of technologies which make it more difficult to listen to bought music the way you want (the various copy protection systems). This is why itunes is so successful. It makes sampling and obtaining music dramatically easier, while at the same time lowering prices.
If I was a music industry exec I'd be spending all my time finding ways to make it easier for customers to buy my product. But then, that's just crazy talk.
Well, you just described commercial radio circa 1965. The fact that you cant find radio like that today has almost zero to do with the RIAA and a lot more to do with the fact that local ownership in radio today is at it's lowest point in history. Almost every major market radio station in the country in owned by 3 media corporations: Clear Channel, Viacom, or Infinity Broadcasting.
These 3 corporations, backed by never ending radio "consultants" that do focus group research, play the same genre based formats in every city in the USA. Thats why a rock station in Fairbanks, Alaska plays and sounds the same as one in Key West, Florida.
The RIAA has a role to play, but they are not responsible for the sorry state of the radio business. Total domination of the entire business by 3 companies and their hired lackeys are.
Look, you may not like the RIAA, but please don't use the word terrorism where its not appropriate. We need a very strong word to describe 9/11 and some of the slaughters that go on in africa. Inappropriate use of the word devalues it's power.