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Apple Music Revenue To Grow To US $15 Billion By 2010, Microsoft/MTV Urge Beta

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Apr 12, 2001
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According to an analysis by independent research and consulting firm Generator (report summarized by Macsimum), Apple's music business could reach US $15 billion by 2010. Such an increase in revenue would represent a doubling of the size of Apple's income based only on their music revenue (iTMS/iPod).

"Most people now understand that Apple's music business is the main source of growth but what's not widely appreciated is just how big the music business could become in the future. It's a big worry for some people in the industry," says Andrew Sheehy, vice president of research at Generator.

Apple has continued to maintain its dominance in both digital music player sales and online music stores despite various competitive efforts by other industry players. Most recently, Microsoft and MTV have announced a public beta beginning this Wednesday of their co-sponsored Urge music store which will be integrated into Windows Media Player 11.
 

rockthecasbah

macrumors 68020
Apr 12, 2005
2,395
2
Moorestown, NJ
wow those are some pretty bold predictions for the iTunes Music Store!!! As great as I think that the iTMS is however, I have to take this with a grain of salt. There is always the chance that something better can come out and gain popularity, possibly something cheaper... But right now considering the iPod/iTunes dominance, this is certainly a plausible feat :)
 
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hag

macrumors newbie
May 15, 2006
3
0
say 'thank you' to MS/MTV for giving Apple a reason to usher in a new era of iPod
 
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Multimedia

macrumors 603
Jul 27, 2001
5,212
0
Santa Cruz CA, Silicon Beach
Don't See Any Successful Challenges Working

Don't See Any Successful Challenges Working. iPod and iTunes are now household names and in use by almost everyone on both platforms. Apple will continue to rule and grow in this space. Go Go Halo Effect! :p

I URGE (weak) Microsoft and MTV to SURRENDER and stop wasting their time trying to defeat the winner after the fact. It's like BETA trying to stage a comeback after DVDs came on the scene.
 
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Apple Shmapple

macrumors member
May 3, 2006
40
0
I don't understand all the hate for the Microsoft/MTV venture. Granted it sounds pretty lame but lets at least see how it plays out before we play "Taps".

Competition is a great thing. Maybe it could even change that buck everyone is paying per song into 75 cents or less. Ya never know.
 
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mozmac

macrumors 6502
Apr 28, 2005
332
15
Austin, TX
Apple can keep it's dominance. Sucks that MTV is on board with Microsoft because MTV can pretty much brainwash the entire age group of 13-25 if it so desires. However, Apple's got such an amazing head start that it can fight to keep it's lead.
 
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maxp1

macrumors regular
Feb 12, 2005
204
0
$15B represents a doubling of income but not a doubling of profit. Not even close. The profit margins on the music store are so slim that I doubt it'll make that much difference to the bottom line.
 
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Multimedia

macrumors 603
Jul 27, 2001
5,212
0
Santa Cruz CA, Silicon Beach
Halo Effect

maxp1 said:
$15B represents a doubling of income but not a doubling of profit. Not even close. The profit margins on the music store are so slim that I doubt it'll make that much difference to the bottom line.
Yes it will because of the Halo Effect. Especially when Boot Camp becomes common knowledge and is included with Leopard next year. :D
 
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4God

macrumors 68020
Apr 5, 2005
2,132
267
My Mac
mattalici said:
Exactly. This one was over before it begun.

NO COMPATABILITY WITH iPOD?! Good luck.

Perfectly written. A joke for these guys to think that they can even compete. :rolleyes:

Wow, a failure to produce an OS on time (or that even works), failure to compete with online music downloads, failure to completely satisfy consumer demands, failure...failure...failure...
 
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ChrisA

macrumors G4
Jan 5, 2006
11,793
575
Redondo Beach, California
I think the iPod and iTunes will continue to "own" the market untill something just as good but half the price comes along. But this is not going to happen. Microsoft will not be able to sell songs at $0.50 each nor could anyone put 4GB of flash in a plays and sell it for $50.
 
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MacKenzie999

macrumors regular
Jan 24, 2002
243
19
Boston
Competition is good

I say bring on as many music outlets as you can!

Competition is good for consumers. I recently discovered emusic.com and while my plan was to simply take the 50 free downloads and run, the service was cool enough that I'll actually remain a member for a month because I like what they're doing and want to support it (a little bit anyway).
 
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Multimedia

macrumors 603
Jul 27, 2001
5,212
0
Santa Cruz CA, Silicon Beach
Quad PPC to Core Duo iMac Is A Major DOWN-Grade

4God said:
LOL Yeah, I URGE them to give up. :p

:D Relisted.Selling my Quad w/ 6.5 GB of RAM and 30" display on eBay to upgrade to an Intel iMac.
That would be a DOWN-grade from Quad to Intel iMac 4God. Perhaps you don't use all 4 processors simultaneously. But for those of us who do, the iMac is way weaker. Quad Intels are coming out probably July. Why waste your time with a Yonah iMac? That's a joke listing right? :p
 
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miketcool

macrumors 6502a
Jun 24, 2003
886
270
California
"Come on guys! Get the URGE. Get the URGE to be cool. Get the URGE to be IN. Get the URGE to rent your music. We've got that URGE to be on top, hip, cool, a contender. Afterall, its just an URGE."
 
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dr_lha

macrumors 68000
Oct 8, 2003
1,599
33
ChrisA said:
I think the iPod and iTunes will continue to "own" the market untill something just as good but half the price comes along. But this is not going to happen. Microsoft will not be able to sell songs at $0.50 each nor could anyone put 4GB of flash in a plays and sell it for $50.
If Microsoft get dirty, this is exactly what they could do. They're not against throwing away money to win a market. Look at their Xbox division, hasn't done anything but lose money since they started it, yet they're currently pushing it hard.

If things get desperate enough, expect to start seeing stuff like "free compatible player when you sign up for a year with URGE" and the like.
 
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LethalWolfe

macrumors G3
Jan 11, 2002
9,368
119
Los Angeles
4God said:
Perfectly written. A joke for these guys to think that they can even compete. :rolleyes:

Wow, a failure to produce an OS on time (or that even works), failure to compete with online music downloads, failure to completely satisfy consumer demands, failure...failure...failure...

Yet for all those failures MS is still a massive, dominating entity. People said the Xbox was going to tank and that there was no way MS could compete w/Sony and Nintendo. Hmm.

Between MS massively deep pockets, and MTV's branding/influence w/a pivitol age group Urge has the best chance of any to compete w/Apple. Obviouslly the biggest hurdle is having a player that can compete w/the iPod.

Being smug and complacent is how companies stop being market leaders so I hope Apple never adopts the attitude of some of it's followers and assumes that other companies will never catch up.


Lethal
 
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andiwm2003

macrumors 601
Mar 29, 2004
4,346
406
Boston, MA
so far i only own a few itunes songs. i also can download my audible books for a different format again. so i'm not locked in the ipod/itunes technology. if there is something cheap and nice out there i have no reason to stay with apple. therefore other companies still have a chance to be successful. not microsoft or real.;) but maybe some other company that actually knows what they're doing.

so bring on the competition. it only can be good for all of us.
 
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corywoolf

macrumors 65816
Jun 28, 2004
1,352
3
Multimedia said:
Yes it will because of the Halo Effect. Especially when Boot Camp becomes common knowledge and is included with Leopard next year. :D

Boot Camp is probably not going to be around when Leopard comes out. It would make more sense for Apple to just build Windows Apps compatibility right into the OS. The user wont have to dual boot, it will all be on the same partition. I am thinking of Boot Camp as just the Beta and feeler for if it's worth building in native Windows compatibility into the next OS. I wouldn't be surprised if future Macs came with Windows standard. MacBook, Mac Mini, iMac come with Home Edition; MacBook Pro and Mac Pro (Power Mac) will come with Professional. Think Rosetta running Windows apps at native speeds. Of course the UI differences will be a challenge.
 
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MrCrowbar

macrumors 68020
Jan 12, 2006
2,066
239
miketcool said:
"Come on guys! Get the URGE. Get the URGE to be cool. Get the URGE to be IN. Get the URGE to rent your music. We've got that URGE to be on top, hip, cool, a contender. Afterall, its just an URGE."

Yea, I can imagine adds on MTV like "Do you feel the URGE too?"
What mozmac said is true. A product doesn't have to bee good to sell. I's all marketing. I'm sure there are spme players better than the iPod out there but we don't know of them. Young people fall for marketing and product placement. I mean, look into one of those teenager magazines, they're actually 99% advertizing for lifestyle stuff. MTV has great power on teenagers because MTV is "cool". If MTV says: "URGE rocks, iTunes s*cks", so be it. :mad:
 
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craigsharp@spym

macrumors newbie
May 15, 2006
25
0
maxp1 said:
$15B represents a doubling of income but not a doubling of profit. Not even close. The profit margins on the music store are so slim that I doubt it'll make that much difference to the bottom line.

I'm not sure what Apples profits are, but lets say that apple makes 3 cents for every song, not including videos, but the margin will be $450,000,000 USD. I dont know where you come from, but that's not pocket change to me. now, if apple sold one quarter of the 15B$ in videos, making a mere 10 cents then the figure would be almost double my first total. Think about it, if apple pulls this off, say bye bye to microslop and winblows, Move OVER, there's a new Mayor in town.
 
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longofest

Editor emeritus
Jul 10, 2003
2,863
1,469
Falls Church, VA
Just to clarify some things: The prediction are music related revenue, which includes the iPod. So we are not just talking about the iTunes Music Store, but the iPod revenue as well.

As for my feelings about "Urge"... it could be the most serious competitor to iTunes, even though it lacks iPod support. Why do I say this? Because it will be bundled with every new Windows PC that ships with Vista (i.e. it is part of Windows Media Player 11). From the initial looks of it, they have done an okay job mimicking iTunes, so for people looking for a viable alternative to iTunes, Urge may be it. That's my $.02 anyways. iTunes still kicks arse.
 
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