Originally posted by balconycollapse
How does everyone else feel about this?
iTMS opened in April. They were making money albeit little off the music store but more off the iPods sales just from mac users - until October when they as far as i can tell doubled the number of downloads and likely iPod user base. All the WMA music services i believe will cannabalize each other but not have any effect on iTMS. Worst case scenario if Apple eventualy ended up capturing only 10 percent of downloaders, with the other 90 percent going to 10+ other services, could apple still continue to operate for as long as they want because the mac user base won't use anything else? I guess my question is in the future can a mac user base support iTMS all by itself indefinately. If so won't this base be a consistent disproportianate largest number of downloaders from any service and always make it look like the others have less membership because there are simply too many to choose from among windows users. As in one piece of pie for windows users divided so every one gets a small sliver and the biggest slice going to apple itms even though its only a 10percent slice.
Does that make sense (sorry i'm half asleep)? Your thoughts?
You are absolutely right. With a 10 % market share of iPods down the road Apple can easily support the iTMS and even make a little profit.(The user base of iPods will grow with time. It now is over 2M and growing. In 5yrs with 200M MP3 players in use a 10% share is 20M or 4 m per year. Still good revenue. People will likely keep the iPods for 5-6yrs before upgrading.(some will need new batteries during this time)