1 million tunes sold

[backspinner]

from http://www.apple.com/pr/library/2003/may/05musicstore.html

iTunes Music Store Sells Over One Million Songs in First Week

CUPERTINO, California—May 5, 2003—Apple® today announced that its revolutionary iTunes® Music Store sold over one million songs during its first week. Over half of the songs were purchased as albums, dispelling concerns that selling music on a per-track basis will destroy album sales. In addition, over half of the 200,000 songs offered on the iTunes Music Store were purchased at least once, demonstrating the breadth of musical tastes served by Apple's groundbreaking online store. Apple also reported that over one million copies of iTunes 4 have been downloaded, and that it has received orders for over 110,000 new third-generation iPods since their introduction a week ago, with music lovers snapping up more than 20,000 of them from stores in the U.S. this weekend.

“In less than one week we’ve broken every record and become the largest online music company in the world,” said Steve Jobs, Apple’s CEO. “Apple has created the first complete solution for the digital music age—you can purchase your favorite music online at the iTunes Music Store, mix your favorite tracks into playlists with iTunes, and take your entire music collection with you everywhere with the super-slim new iPods.”

“Hitting one million songs in less than a week was totally unexpected,” said Roger Ames, Warner Music Group’s chairman and CEO. “Apple has shown music fans, artists and the music industry as a whole that there really is a successful and easy way of legally distributing music over the Internet.”

“Our internal measure of success was having the iTunes Music Store sell one million songs in the first month. To do this in one week is an over-the-top success,” said Doug Morris, Universal Music Group’s CEO. “Apple definitely got it right with the iTunes Music Store.”

Apple also announced that tomorrow, May 6, the iTunes Music Store will be adding over 3,200 new tracks, including major new album releases such as Jack Johnson’s “On and On,” Andrea Bocelli’s “Tosca” and Fleetwood Mac’s “Say You Will,” as well as pre-release tracks from upcoming albums by artists David Sanborn, The RH Factor, John Scofield, Jesse Harris and Lizz Wright. Also to be added tomorrow are additional albums from the Eagles, Michelle Branch’s album “The Spirit Room,” and new Featured Artist pages for Coldplay, including an exclusive track and music video, and Alanis Morissette, with her catalog of music.

The iTunes Music Store features over 200,000 songs from major music companies including BMG, EMI, Sony Music Entertainment, Universal, and Warner and lets customers quickly find, purchase and download the music they want for just 99 cents per song. The iTunes Music Store offers groundbreaking personal use rights that allow users to burn songs onto an unlimited number of CDs for personal use, listen to songs on an unlimited number of iPods, play songs on up to three Macintosh® computers, and use songs in other applications on the Mac®, including iPhoto™, iMovie™ and iDVD™.

Music lovers can easily find the hits they love and discover gems they’ve never heard before by listening to free 30-second high-quality previews of any song in the store, then purchase and download their favorite songs or complete albums in pristine digital quality with just one click. Users can explore music in an entirely new way by easily searching the entire music store to instantly locate any song by title, artist or album, or browse the entire collection of songs by genre, artist and album. The iTunes Music Store is fully integrated into iTunes 4, the fourth major release of Apple’s popular digital music jukebox software, allowing users to purchase, download, organize and listen to their music using just one application.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

[jethroted]

Good for apple! I hope this helps them make some more money so that they can reduce the cost of their hardware! That would be good news for all of us.

[Grimace]

As soon as we get the windows version of iTunes out there, the better, that will make this biz take off even faster!

[Stelliform]

That is too cool! I really like the service. I am glad that it will be staying around....

[Thanatoast]

The best part is that this means the music companies will be opening up more of their libraries, allowing for more depth. Sweet!

[evoluzione]

fantastic!

and all you people out there that thought it wouldn't work, bollocks to ya :)

as for the windows version, bollocks to them too, i'm not sure i want that crowd in our domain, look what they did to hotline for example. also, it's one more reason to get a mac if they can't use the store on their pc...(i know i know, it's a good thing really right?)

[Stelliform]

I personally would like to see them open it up to a few more countries, ASAP... At least Canada. They can't be that different from the US on copyright laws.... :)

But All around great news for Apple!! I guess the prelimiary scores is:

SJ 1
doubters 0

[lmalave]

Sweeeet! Well I did my part, spreading out my purchases. Bought 3 on the first day, 7 on the second day, and 6 yesterday. Pretty good, considering the last time I purchased a CD was 3 years ago. I'm definitely buying any new releases I want from the iTunes store if they are available. One of the factors that I haven't heard discussed is that people will probably buy more music because of the convenience of doing it online. So it's win-win all around.

[wdlove]

Well once again the critics were wrong! ;) Congratulations Steve! Once Fall comes and it's availabe for Windows, watch out Bill!

[NitzerX]

Originally posted by Stelliform
I personally would like to see them open it up to a few more countries, ASAP... At least Canada. They can't be that different from the US on copyright laws.... :)

But All around great news for Apple!! I guess the prelimiary scores is:

SJ 1
doubters 0

There's been plenty of other things that SJ has beat the doubters on. His only misstep I can think of off the top of my head is the cube. The problem there was the price, not the design. The design was awesome!

[Kid Red]

I'm still waiting for Dell to launch a muci service for PCs and say they were the first.

This ios great, I hope Apple can be a leader for a long time because you know others will copy this service to it's core.

[Macmaniac]

Apple needs to get the service to windows by WWDC!!!!! Don't let Dell steal it from u!!

[Qball]

Jack Johnson's new CD will be available at The Store on it's release date. Plus 3,200 other new tracks. I was concerned that I would not be able to get new albums on their release date, but it looks like Apple is on top of it. Not bad at all.

Just wait till this thing is on Windows. $$$ for Apple, $$$ for musicians and record companies = major respect and clout for Apple.

[LethalWolfe]

While this is very impressive lets not count our chickens before they've hatched. Numbers 6 and 12 months from now will tell the real story. Right now the Store is doing mega business 'cause people have that "Oooo... shiny new toy" mind set. After the novelty<sp?> wear's off hopefully the numbers will still remain solid.


Lethal

[phantommaul]

apple now looks for software developers to make the windowzzz version of iTunes (which would be really great news like PC slaves like me). but if apple waits till the end of 2003 the other companies would start up their own music store services and get the market share.

so if apple wants to be the leader of digital music they have to release the win version of iTunes really soon. and they have to start up the music store service for the other countries.

and apple, please dont forget Turkey :)

[copperpipe]

Guess what - people do want to legally purchase their music, so the musicians get their cut. Steve got it right, it's such a great delivery system, and now I buy music again (and save money - $10/album is much more reasonable to me). It's just really heartening to me to know that people want to do the right thing, and not steal from artists (blech, it just makes me sick to think that you steal from people who make songs - songs! songs that you love!). Hoo-ray for Apple!

[Stelliform]

Originally posted by copperpipe
Guess what - people do want to legally purchase their music, so the musicians get their cut.

That is exactly it! And here is another thought to consider.... I am a businessman. No way of getting around it, I always dress nice because I do not know what business contact I might bump into. Here is my problem, I like music that doesn't fit into that persona. I really get embarrassed buying the music I like. I think that is part of the reason I stopped buying CD's... Now I can buy whatever I want and not worry about looking foolish in front of a client. Or trying to pass the CD off as I am buying it for someone else...

(I know ya'll are wondering, so here goes... I like different stuff like, korn, garbage, some of No doubt, beck, Bloodhound gang...)

[beatle888]

Originally posted by copperpipe
it just makes me sick to think that you steal from people who make songs - songs! songs that you love!

this should be in an apple commercial. this is such a good point.

[zach]

Gees! 1 million songs! And remember, people, this is with 95% of the computing market using other os's. That means if a quarter of all americans have a computer (using 280 million as the american population) and 2% of all computers run os 10.2, then 1.4 million people are running os x. Now, imagine that 90% of computers are running windows. That's 63 million.

I know these numbers are way off, but the percentage increase is about right. If windows users have a fraction of the responce mac users did, this service will make so much money......

[mactastic]

Originally posted by phantommaul
... if apple waits till the end of 2003 the other companies would start up their own music store services and get the market share.

so if apple wants to be the leader of digital music they have to release the win version of iTunes really soon. and they have to start up the music store service for the other countries.

If I was SJ I wouldn't mind telling people I had a target date of end-of-year for getting iTunes for windows going, then magically roll it out several months early...
Just a thought

[Freg3000]

I agree with all of the novelty comments. Intrests will die down eventually. However, I only planned on downloading 1 song, and I ended up downloading 3. :)

But even if sales drop tremendously, say 10x, the introduction of a Windows client as well as an international version would more than outweight such a drop. Plus you would have that same novelty effect on all of those new customers.

All in all, this is VERY good news. For Apple's stock (AAPL (http://finance.yahoo.com/q?s=aapl&d=t)) is up about $1.75, over twelve percent!!!

[backspinner]

Originally posted by zap23
If windows users have a fraction of the responce mac users did, this service will make so much money...... At work we have about 7 people and 30 Windows computers. I guess it doesn't scale the way you think.

[jelloshotsrule]

so. 1 million dollars (basically) in sales... and apple gets 35% of that if i recall correctly? not bad at all

i think the thing to remember about other companies coming out with a windows version is that, while possible, it's not like it's an "easy" task... so if apple's been working on the infrastructure, and now "just" need to get the windows version rolled out (while of course fine tuning and adding songs), then they still have the upperhand. of course, a huge pc company could throw a ton of money at it and get it done sooner. but who knows if it'd be done as well (most likely not). we'll see in a few months.

[york2600]

Go to shopping.yahoo.com and buy CDs for 8-12 a pop. I usually get 6 CDs for about 65 shipped. CDs aren't that expensive if you buy them in the right place. You get ripped when you buy them retail.

Originally posted by copperpipe
Guess what - people do want to legally purchase their music, so the musicians get their cut. Steve got it right, it's such a great delivery system, and now I buy music again (and save money - $10/album is much more reasonable to me). It's just really heartening to me to know that people want to do the right thing, and not steal from artists (blech, it just makes me sick to think that you steal from people who make songs - songs! songs that you love!). Hoo-ray for Apple!

[jelloshotsrule]

Originally posted by york2600
Go to shopping.yahoo.com and buy CDs for 8-12 a pop. I usually get 6 CDs for about 65 shipped. CDs aren't that expensive if you buy them in the right place. You get ripped when you buy them retail.

i agree.. that's how i buy my cds in any decent quantity... the key difference really is that it's not instant. which usually is ok. but often one wants to pick up the latest album by whoever and you want it right away... i know i've paid 18 bucks on release day when i could've waited til a show or to buy it online for 12..

[Frozone]

Go Apple Go Apple Go Apple
Just PLEASE hurry up and release the windows version.
I wonder how long before you can download an entire movie through iMovie.

[sparks9]

WOW this is a fantastic success! Apple has to add more songs to the store to fuel the success-train even more.

BTW: I'm on of those 110.000 who has ordered an iPod. Woohoo!

[MacFan25]

I am glad to see that Apple is doing so well! Hopefully, they will continue to sell more music and more iPods! :)

[Griffindor73]

Does anyone know if/when it is coming to the UK? I bet it will cost more as CD's are more expensive over here (IE £9.99 for new ones, £14 for older non chart CD's)

I be it will be about 99 pence a track, which must be about $1.30 (ish). Its a shame you just cant put your credit card details in and download! Has anyone from the UK tried? May be you can fool it if you live in a place with an identical place name in the USA. Is there a Brighton in the States????:)

[Puffin]

Originally posted by Griffindor73
May be you can fool it if you live in a place with an identical place name in the USA. Is there a Brighton in the States????:)

There are at least a Brighton in 27 States. You asked.:D

[evoluzione]

haha. yeah there's loads of Brightons in the States, it's the zip/post code that'll flumox ya.

forgive me if i'm wrong, but why is everyone so bent out of shape about the windows race. has apple not done a deal with the record companies??? it's going to take hella work for a pc company like dell to get a slice, apple has the advantage of having the all in one solution with the hardware and software etc, i think that may be a big factor in it's success. a pc manufacturer may not have been able to pull it off like apple has. i think if there are going to be any windows itunes rivals, they'll lose.

[AndrewMT]

I strongly agree with everyone who says that iTunes and the Apple Music Store need to be ported to Windows as fast a possible. The fact that they are just now hiring people for the windows port is pathetic. Apple needs to be doing something every day to insure that its Music store is the first of its kind on PC.

Can we make some kind of petition to insure Apple gets this message? I'm sick of MusicMatch and the rest of these half-@$$ed iPod programs with my new 15GB iPod. I for one would have bought several tracks already if I had a pc version if iTunes.

[Java]

Originally posted by evoluzione
forgive me if i'm wrong, but why is everyone so bent out of shape about the windows race. has apple not done a deal with the record companies???

Let's not forget that Steve Jobs personally invited individual muscians to view the new music service, of the which are Mick Jagger and Paul McCartney.

Even if some other company puts out an online music store, what artist is going to side with it? I'd love to see Bono praising Dell or Micro$oft.

Steve Jobs is a rock star. I'd like to see the CEO's of other companies invite artists to view their software!

[BaghdadBob]

Originally posted by evoluzione
it's going to take hella work for a pc company like dell to get a slice.

Dell would have no business here. This is for software companies to do, not PC companies whose R&D departments consists of designing cases and configuring 3rd party products.

Originally posted by AndrewMT
The fact that they are just now hiring people for the windows port is pathetic.

Wrong. They may have an ad out, but that doesn't mean they're hiring the whole team. Believe that they have been working on it. That's a fact. My personal opinion is that that ad, even if real, was a ruse to draw out some hurried competition to get quashed by the unexpectedly quick port of a polished product.

On novelty contributing to sales:

Yes, but, Apple has pleny of music to add to this service. They will probably triple their catalogue before the rate of expansion goes down -- I mean, there are a lot of holes. And no indie labels to boot. As those holes fill, the downloads will continue.

Besides, Apple can EASILY continue this rate of sale once they have the PC and international market, even with competiton.

But back on the subject of a clone of this service everyone needs to calm down again and remember that the record companies have to like what they see before they will sign. Period. If they don't like it they won't sign. And neither will the artists. And Apple makes some of the best software out there (to a point), remember?

Besides, the record companies do not want a price war with their product, period (again). So having a bunch of services out there when you only need one to represent you is foolish as long as Apple is a good partner, which no one in the entertainment industry believes MS will be (and, once again, Dell is not a factor, they don't make software!).

[beatle888]

Originally posted by AndrewMT
I strongly agree with everyone who says that iTunes and the Apple Music Store need to be ported to Windows as fast a possible. The fact that they are just now hiring people for the windows port is pathetic.

jumping so high to conclusions. typical.:rolleyes:

[lmalave]

Apple stock was up 11% on the news, even on a down day for the market. Wall St. definitely likes what it sees so far.

[gopher]

Originally posted by NitzerX
There's been plenty of other things that SJ has beat the doubters on. His only misstep I can think of off the top of my head is the cube. The problem there was the price, not the design. The design was awesome!

Both cubes. The NeXT Cube was a mis-step as well.

[GregA]

Originally posted by evoluzione
forgive me if i'm wrong, but why is everyone so bent out of shape about the windows race. has apple not done a deal with the record companies??? Wasn't there a comment in one of the magazines saying that Apple had already signed 2 of the 5 big music companies for their Windows service...

Sorry I don't remember where I read that. At least they don't have to convert the songs twice.

I hope, when (if?) they sign up Australian distributors, they can simply 'enable' the international acts and import the Aussie ones.... nice and QUICK.

[maradong]

just imagine the sales if itunes for windows would be aviable. THought 1 000 000 songs are quite alot. with a windows version, and an appropriate ad compain, sales shoul easily be multiplied by 10 if not 100...

[frinky23]

One thing Jobs pointed out was all the infrastructure Apple has been putting in place over the years that allows the music service to run smoothly. Is this infrastructure capable of handling 10 times the load that a Windows client will put on it, and is that infrastructure robust enough in foreign countries?

[BaghdadBob]

Originally posted by frinky23
One thing Jobs pointed out was all the infrastructure Apple has been putting in place over the years that allows the music service to run smoothly. Is this infrastructure capable of handling 10 times the load that a Windows client will put on it, and is that infrastructure robust enough in foreign countries?
I'm worried about that too. I would like to think that Apple plans to increase it's bit rate sometime in the next 18 months, but I'm curious to see if they will even be able to carry the Windows load when it comes. But I guess the best news would be if people started getting slower download times...this just equals $$$$$$$....and $$$$$$$ buys extra servers.

[MyLeftNut]

Dont forget a lot of artists/musicians use Macs for the creation of these tracks anyway...could you imagine Dell trying to sell their *&^* to them? I would love to see the looks on the musicians faces...priceless...

[GregA]

Originally posted by frinky23
One thing Jobs pointed out was all the infrastructure Apple has been putting in place over the years that allows the music service to run smoothly. Is this infrastructure capable of handling 10 times the load that a Windows client will put on it, and is that infrastructure robust enough in foreign countries? I know Apple bought into the Akamai distribution system as a way of streaming quicktime... and that is international right? Otherwise, if the local Apple companies (eg Apple Australia) hosted some of the content I guess that would take strain of the Akamai system but add pressure to their local connections. I'm sure a balance between the 2 could be quite effective though.

On another note - Do you really think Apple will get 10 times the load by having a Windows client? Windows already comes with RealPlayer, so it may not be such a given.

[ssamani]

Originally posted by jelloshotsrule
so. 1 million dollars (basically) in sales... and apple gets 35% of that if i recall correctly? not bad at all



35% minus costs for infrastructure payments, bandwidth payments and credit card payments. Therefore less than $350,000.

Compare with 30% gross margin on 110,000 iPods @ $400 (the middle model always seems to be the fave) = $13.2 million.

This brings into perspective what this is all about. Selling Macs and iPods is still Apple's core business. If you assume that Apple sells 20million songs a week once the Windows version comes along, that is still only $360m a year - gross. Compared to their sales of $6bn in the recent "bad" years, it really is not that much at all.

The 1m songs is not the big news. Selling 110,000 iPods is. iTunes music store is a unique selling point for the iPod just as iTunes is a USP for the Mac.

Sanjay