Apple Sells 275,000 Songs in First 18 Hours

[Le Big Mac]

Originally posted by Macmaniac
Yes they should release a port by WWDC, that would a great place to announce the service for windows users, They have to do this fast, this is a once in a lifetime opportunity for Apple. They can beat the rest of the market and be the online standard for music online. They just have to act quickly!!

Don't lose this opporutunity now!!

The key question is whether Apple got any kind of exclusivity deal from the major lables, so that they won't license to anyone else.

And to the person who says apple pays licensing fees, I think that's the 65c that the record cos. get from each 99c sale. the other 34c is apple profit (less their costs)

 

[Stella]

Excellent news

And remember, thats just mac users in the US. Just imagine if this was a world wide service (including windows users) - think of the sales figures then .

I really hope this does work. But Apple need to get this thing rolled out worldwide and to windows users, before competitors do.

I'd rather buy from an apple music service than say, Microsoft.

Of course we'd have the option to buy from what ever competitor we like, but Apple seems 'safer'. I could imagine Microsoft would only supports its own propriority formats, and heavy weight DRM.

 

[ogun7]

I know I spent 40 bucks in ten minutes the first night, b/w James Brown and Duke Ellington & John Coletrane. My girlfriend spent 50 bucks that night.
By today, we must have spent about $150 dollars between the both of us.
It's TOO EASY to buy music through iTunes
And I download hundreds of megabytes of music from newsgroups, but I'm still willing to pay for good music.

 

[phgreer]

I downloaded one song the first day to test it out. I haven't had that much time during the week but on the weekend I plan on downloading quite a few. At least 25... Why? One reason is I downloaded some stuff back when Napster was kicking but I'm currently making a list of the tracks I really want and value and will redownload them legally via the Apple Music Store. I'm also deleting ones I could really care less about and I'm sure I'll download more in the future. I hope they start offering books on tape as well.


You also have to remember that in addition to the money they will be receiving from the tunes this is also a big P.R. move. In the past few days I have seen more positive comments from people who would normally say negative stuff about able. One guy I know said he can't want till the Windows version comes out but in the mean time he is tempted to get one of those "half globe monitor on a stick thingies" - Flat Panel iMac.


Not to mention this will also sell new iPods which will in turn sell more tunes.


In fact I think this service is going to make the sale of iPods go up even more because it will be easier and legal for people to get the tunes to play on these.


Personally I can't justify getting an iPod right now but I see getting one in the future. The iPod is more than an music player. Apple is slowly adding features and will be a great portable solution for things other than musics...

like drive back up, storage of video and keynote presentations.


I would like to see an audio recording solution as opposed to the convulted way PDA get text. If they could make one with voice recognition for contacts input, file searching, etc. I would buy one and of course buy some tunes to listen to.

 

[Sonofhaig]

Markets Outside US..

Originally posted by punter
So far it's only apple and it's only USA, plus don't they have to be running OSX to use the new itunes?

Regardless, screw other countries (like mine), screw old versions of mac os, just get this thing ported to PC before anyone else does!

Ka Ching!! Sure Steve talks it up, but I believe this is definitely a turning point for the sale of music.

If possible, the service should at least be made available in the
United Kingdom, Australia and Canada. BTW- Three of the most beautiful places in the World I might add. But that's my opinion...

I'm sure Apple will be expanding services like Music and Sherlock soon.

 

[woodsey]

Apple Screwed up Windows Timing

In my opinion Apple should have had a windows version of itunes ready for release on the 28th. Who knows what Micro$oft or any other PC software company will produce by the time apple releases itunes for Windoze.

Additionally, how much extra revenue would they have made between now and the end of the year? Id say around 10 x whatever they make selling exclusively to mac.

I love teh music store and all (id love it more if it worked outside the US) but in my opinion, it is just a huge waste of potential revenue.

 

[csimmons]

Originally posted by punter
So far it's only apple and it's only USA, plus don't they have to be running OSX to use the new itunes?

Regardless, screw other countries (like mine), screw old versions of mac os, just get this thing ported to PC before anyone else does!

Other countries make up half of Apple's yearly revenue. I'll bet you large chunks of cash that had Apple made the Music Service available to all of it's international customers right off the bat, that initial sales figure would have at least been double, if not more. I live in Germany (I'm American), and had my credit card been accepted by iTMS, I would have bought at least $50 bucks worth of tunes.

BTW. Apple sould make Windoze users pay for iTunes.

 

[alset]

Originally posted by dobbin
So are you saying you'd rather Apple sold music to US PC users than introduce the service to other Mac users around the world, including yourself? Thats a bit wierd if you ask me.

You misunderstood. I think punter was saying that the PC market is more urgent than the rest of the Mac market due to potential competition. Mac users world wide should have this service, of course, but aren't you willing to wait a bit longer so that Apple can better leverage their resources and develop a Windoze product?

Dan

 

[unc32]

There is an interesting article in Time online with Steve Jobs talking about the music service. The race is on but it doens't have to be rushed. Another software company could make a similar program however you must remember that the backend investment is huge. Just imagine the amount of servers and networking infrastructure apple has to back this up. A little software company couldn't put that together on the fly...not everyone will want to spend 10s of millions to get this running and then have to compete with Apples marketing team. Who are you going to by from Apple or some nobody. I had never even heard of these alternatives, do you really think they can out market apple?

 

[lmalave]

Originally posted by dongmin
quick math:

$270,000 a day

$98.6 mil a year

$34.5 mil in revenues for Apple

Not bad, but not great. The Mac market, for the most part, is just a preview of the real money to be made in the PC world.

3 Mac users to every 97 PC (& others)

Fully saturated market with Apple Music taking over the world:

$1.1 bil in revenues for Apple!!!

I think Apple still makes $98.6 mil a year in revenues. I'm pretty sure the licensing fees count as a regular cost. That's the way a smart accountant would set it up, anyway, to boost Apple's revenue numbers...

 

[lmalave]

Originally posted by unc32
There is an interesting article in Time online with Steve Jobs talking about the music service. The race is on but it doens't have to be rushed. Another software company could make a similar program however you must remember that the backend investment is huge. Just imagine the amount of servers and networking infrastructure apple has to back this up. A little software company couldn't put that together on the fly...not everyone will want to spend 10s of millions to get this running and then have to compete with Apples marketing team. Who are you going to by from Apple or some nobody. I had never even heard of these alternatives, do you really think they can out market apple?

But the major labels could just modify their existing online services. That's the major threat I see. Right now the major labels have refused to license each other's artists, but if they see that Apple is making money, they're going to want to step in and take the market from Apple.

 

[Jerry Spoon]

Originally posted by ogun7
I know I spent 40 bucks in ten minutes the first night, b/w James Brown and Duke Ellington & John Coletrane. My girlfriend spent 50 bucks that night.
By today, we must have spent about $150 dollars between the both of us.
It's TOO EASY to buy music through iTunes

This is why this whole thing will be a success...the impulse buy. Apple's done a great job of giving us, the consumer, a nice shiny new toy to play with and we think, "Hey, this song's only 99 cents...and this song's only 99 cents too." Before long, we've blown our rent updating our collection of Johnny Cash songs and we're looking for a 12 step program to join to help with our newest addiction.
Hey, I'm not complaining. I've spent about $20 so far, but this is why this will definitely make money for apple!

 

[makkystyle]

Hold on a minute...

I think all of you are forgetting that there are already services available in the Windows world. Now the business models differ slightly in that they mostly utilize a subscription based method, but they are still available for music download.

The reason that Apple has been so successful with this launch is the realization that customers want choice and don't want to be tied to contracts. But more importantly, iTunes is successful because Apple offered a 'total package' to the music industry that no one else could offer. All these other companies just changing their business model to a per song fee schedule will not make them the same as Apple's service.

While I do agree that the sooner Apple releases a Windows ported version of iTunes the better. BUT, it is not as if some other company is going to be able to manufacture the software (iTunes), DRM encoded music files (protected AAC format) and the hardware (iPod) in the blink of an eye. Apple has the first mover advantage which will certainly see off any competitors for the rest of the year. What will be important is how well iTunes for Windows is implemented so that Apple can capitalize on this advantage and see off competitors and new entrants in the future.

Let's remember that the reason Apple has the majors on board is because they are protecting the industries interests. Competitors will have a hard time convincing labels that they can do it better.

 

[bokdol]

Originally posted by lmalave
But the major labels could just modify their existing online services. That's the major threat I see. Right now the major labels have refused to license each other's artists, but if they see that Apple is making money, they're going to want to step in and take the market from Apple.

if apple makes money they make money. and they have less work to do. less to implement on their side. apple does most the hardware software conversions. they just provide the music. and roll in on pure profit......

this service is only a plus for major lables. they can only make money in this situation. 65 cent on every DLed song 10 to 20 cents for the artist (my guess) (45 cents for each song of pure profit) they dont have to implement any hardware or software. they would almost be stupid not to want to do this...

as a consumer i want to go to one place to get my music. not to each seperate music company to get music. it so much easier from one app. one location.

 

[jayscheuerle]

Originally posted by DeusOmnis
That was the first day, so that may be unusually high sales, not the average, like the opening day of a movie.

Exactly! Everyone hunted down their top 20 songs and bought them. The follow up is "Now what?".

Statistically, the first couple of days numbers are meaningless. They're all built on hype. I'll be suprised if they make as much during an entire week in June as they did during the first 18 hours.

Good luck Apple... - j

 

[howard]

yes there are tons of other services for windows...but they all suck...and plus windows people will get itunes!! which rocks!...i wonder how different it will look?....

you can't beat the integration that the music store in itunes has.

so far i havn't bought anything...i may i may not...however this will speed up my cd buying, see i really like to have the physical product. except if its just like one song on a cd that i like.

 

[jayscheuerle]

Originally posted by bokdol
this service is only a plus for major lables. they can only make money in this situation. 65 cent on every DLed song 10 to 20 cents for the artist (my guess) (45 cents for each song of pure profit) they dont have to implement any hardware or software. they would almost be stupid not to want to do this...

Artists will be lucky to get 4¢ per song. The industry gets the rest, some of which go to recording costs, marketing, etc.

There's no pure profit at this point, especially for Apple. They spent $10 million just putting this together... - j

 

[rutabaga]

apple blew it

as usual with apple, incredible idea, flawed execution.

Question: when was the last time apple came up with an absolutley brilliant idea?
Answer: just about every product they release.

Question: when was the last time apple actually executed the release of that product in a brilliant fashion?
Answer: umm, maybe the pismo g3 powerbooks?

As usually, apple's release leaves something to be desired. Why apple didn't release a windows version alongside their mac version is beyond me. Clearly they havn't even hardly started on working on the windows version, if the job posting on monster.com is any indication. The eight months from now until the end of the year (which is the timeframe within which jobs said that service for windows would arrive) could be a critical delay.

The only reason it makes any sense to keep this exclusive to the macintosh in the short term is to try and win converts and to sell more macintosh computers. Towards that end, it would make great sense if apple could bundle the perks of their song service when you buy a new computer, i.e. give away 100 free song downloads with the purchase of any imac. but alas, I see no indication that they are going to do such a thing.

alas - unless they can bring this to windows within four months or so, this may be another wave that apple just missed riding to the promised land.

 

[Sol]

While I would like to see this service offered here in Australia I think that in the short term it would make more sense for Apple to release the Windows version of iTunes first. America has the broadband numbers to make the Apple Music Store practical and if Windows users start using the service it will make a lot more money than it is now. Before making the service international it would be best to offer local content. I also think Apple should have kiosks in Virgin and HMV music stores so that people without broadband can also access their service.

By the way, any guesses on how long before Dell introduces their own version of this? I give them three months, because they will want to rush before iTunes for Windows hits the market.

 

[Jerry Spoon]

Originally posted by lmalave
But the major labels could just modify their existing online services. That's the major threat I see. Right now the major labels have refused to license each other's artists, but if they see that Apple is making money, they're going to want to step in and take the market from Apple.

This might be a bit of a stretch, but why do brick and mortar stores like Target and Babies R Us (and even Apple) use Amazon? Because they offer what most many think is a good interface and a good buying experience. Sure, the major labels might offer thier product also, but if Apple does things right - and it appears so far that they are- the major lables are going to keep relying on Apple because they offer a good buying experience and it's less hastle for the labels.

 

[RIP]

Re: apple blew it

Originally posted by rutabaga
as usual with apple, incredible idea, flawed execution.

Question: when was the last time apple came up with an absolutley brilliant idea?
Answer: just about every product they release.

Question: when was the last time apple actually executed the release of that product in a brilliant fashion?
Answer: umm, maybe the pismo g3 powerbooks?

As usually, apple's release leaves something to be desired. Why apple didn't release a windows version alongside their mac version is beyond me. Clearly they havn't even hardly started on working on the windows version, if the job posting on monster.com is any indication. The eight months from now until the end of the year (which is the timeframe within which jobs said that service for windows would arrive) could be a critical delay.

The only reason it makes any sense to keep this exclusive to the macintosh in the short term is to try and win converts and to sell more macintosh computers. Towards that end, it would make great sense if apple could bundle the perks of their song service when you buy a new computer, i.e. give away 100 free song downloads with the purchase of any imac. but alas, I see no indication that they are going to do such a thing.

alas - unless they can bring this to windows within four months or so, this may be another wave that apple just missed riding to the promised land.

Hmmm. Maybe the job posting was a decoy to mask the amount of development that has actually taken place on iTunes up to this point. People work on the windows version of Quicktime, so there are people at Apple that know Win32.

By the end of the year could mean tomorrow...

 

[Rower_CPU]

Originally posted by peterjhill
alas, there will be no Stevenote at MWNY/Create... I am guessing that we are to be happy with the latest annoucement, or get used to these one-offs anytime, which is fine for me. I am sure he will still do SanFran, and my sister-in-law lives out there, so maybe New Years in CA next year ;-)

I thought they were still working that out, and that Apple had backed off their "no Stevenote in NY" position...but hey, between the name changes and everything else, who can keep track.

 

[bokdol]

Originally posted by jayscheuerle
Artists will be lucky to get 4¢ per song. The industry gets the rest, some of which go to recording costs, marketing, etc.

There's no pure profit at this point, especially for Apple. They spent $10 million just putting this together... - j

i heard a interview i think it was saliva. they said for each song played on the radio... yes played.. they get 10 cents.. now 10 for a DL does not sound like alot. for apple it's not right away but after the service gets established it may very well be. and when i say pure profit i was talking about the record lables

 

[cosmicsoftceo]

Re: apple blew it

Originally posted by rutabaga
Clearly they havn't even hardly started on working on the windows version, if the job posting on monster.com is any indication. The eight months from now until the end of the year (which is the timeframe within which jobs said that service for windows would arrive) could be a critical delay.

I think that most of it will be directly ported anyway. IMO all they need is someone to oversee testing & finishing the product, which is why they listed "Windows Logo Certification" as a key qualification for the job.

 

[G4scott]

Re: Apple Screwed up Windows Timing

Originally posted by woodsey
In my opinion Apple should have had a windows version of itunes ready for release on the 28th. Who knows what Micro$oft or any other PC software company will produce by the time apple releases itunes for Windoze.

Additionally, how much extra revenue would they have made between now and the end of the year? Id say around 10 x whatever they make selling exclusively to mac.

I love teh music store and all (id love it more if it worked outside the US) but in my opinion, it is just a huge waste of potential revenue.

You say that now, but think of all the music that is currently unavailable to us right now via the Apple Music Store. This will give time for Apple to add music, attract more labels, and make the service even better, so when windoze users get it, they will be completely stunned by the simplicity and selection, and they will open up their wallets...

Apple could've opened it up to windoze users now, and gotten some profit, or they could experiment with the Mac community, make the store better, and make a sh*tload more money...

Besides, I don't think that any other company will be able to roll out anything close to the magnitude of the Apple Music Store before the end of the year. The existing services suck, and would have to re-do their contracts to offer something more Apple like, and any new service would have a hard time getting all of the record companies Apple will have by year end.

I see Apple holding off to release this to the windoze world as a great move, and not a waste of potential revenue. I believe they'll make the money regardless of when it rolls out for windoze, as long as it's before years end. Besides, they might get some switchers (although probably very few) from this music store...