iTunes, Indies and Kids

[MacRumors]

Rolling Stone has a brief article documenting Apple's June 5th meeting with independent record labels.

The article claims that Apple could potentially increase their number of songs on the iTunes Music Service to 400,000 songs (from 200,000) with the addition of the indie labels.

Of interest, it appears Apple may be trying to bring the iTunes Music Store into closer reach to kids without credit cards in the form of "stored-value cash cards" that teens could use at the iTunes Music Store to buy music.

Overall reception to the iTunes Music Store by music executives is reported to be positive.

 

[synthetickittie]

two questions.. when are we going to find out what exact labels and when are the songs going to be put on?

 

[noverflow]

Originally posted by synthetickittie
two questions.. when are we going to find out what exact labels and when are the songs going to be put on?

Exactly what i want to know.

 

[Digipimp]

Yeah this is something I mentioned when the store came out at the very begining. Apple should have cards that are essentially like gift cards that they sell in their stores and other stores that carry apple products such as CompUSA and if BestBuy starts to carry again. Then people can buy something like a $20 or $50 gift card and give it as a gift or something so that they can use it to buy music online. This is great for people without credit cards as well so they can go into the store and pay cash. Great all around and I hope they do it.

 

[mymemory]

That stuff for kids is something that no other provider can bring to not credit card users.

That is so good.

 

[Nermal]

So now I just need to import some of these cards, and use the service over here

 

[FredAkbar]

Perhaps Apple will announce this deal, and the no-credit-card feature, at MWNY. Or is this going to happen a lot sooner than that?

--Fred

 

[hugemullens]

The no credit card is a great idea, , so kids could get these instead of annoying mom and dad requesting to use the credit card for a 99 cent per purchase. As for the indie lables, more the better, i hope they get them up soon, the store is great but still lack the variety most people desire.

 

[ozubahn]

Originally posted by hugemullens
The no credit card is a great idea, , so kids could get these instead of annoying mom and dad requesting to use the credit card for a 99 cent per purchase.

And more important, from Apple's perspective, is that a prepaid card avoids the micropayments problem. They get a lot more profit out of one $50 card than they do from fifty $1 song purchases.

 

[arvidvdb]

Any news on ITMS getting available outside the US? It sure sounds better and better.
The card-system would sound as a good temp. solution for europe, unfortunately, we don't have apple-stores here

I'd hate it if microsoft 'd beat them to it in europe.

 

[Nermal]

Originally posted by arvidvdb
Any news on ITMS getting available outside the US? It sure sounds better and better.
The card-system would sound as a good temp. solution for europe, unfortunately, we don't have apple-stores here

I'd hate it if microsoft 'd beat them to it in europe.

Yeah, international users can still use the service if they've got a US credit card. So the card system would avoid this problem - if you can get hold of a card.

 

[irmongoose]

Well, exactly what I needed. I really don't want to be bugging my dad every time I want to buy a song... because he certainly hates the idea of giving out his credit card number online...

All I need now is for the service to become available outside the US!



irmongoose

 

[dguisinger]

Originally posted by ozubahn
And more important, from Apple's perspective, is that a prepaid card avoids the micropayments problem. They get a lot more profit out of one $50 card than they do from fifty $1 song purchases.

True, however with merchant accounts there is usually a minimum fee per transaction, for example $0.05 or $0.10.

Apple gets around this as much as possible, by grouping purchases made over a 1-2 day period.

They first reserve the funds and make sure they are available, but they do not finish the transaction until after they see if an additional order or two come through, thus saving them money.

Plus, a company of Apple's size probably has very good discount rates with their merchant provider.

 

[benjaminpg]

Obviously these cards could be used as gift cards, but it would also be nice to be able to give electronic gift cards. You would enter the email address of the person you wanted to give it to and they would get sent a message with a number in it. This number could then be entered into their account to add credit to buy stuff.

The electronic gift cards should be able to be purchased with these cash cards or with a traditional credit card.

It would also be cool to be able to buy specific songs/albums as gifts. They would have to be authorized for the recipient's account instead of yours.

This is all sounding very cool, especially about getting more indie music.

P.S. It's nice to hear something not centered around 970s and WWDC.

 

[PowerBook User]

Originally posted by Digipimp
Yeah this is something I mentioned when the store came out at the very begining. Apple should have cards that are essentially like gift cards that they sell in their stores and other stores that carry apple products such as CompUSA and if BestBuy starts to carry again. Then people can buy something like a $20 or $50 gift card and give it as a gift or something so that they can use it to buy music online. This is great for people without credit cards as well so they can go into the store and pay cash. Great all around and I hope they do it.

That is certainly a good idea. Then all Apple would need is Windows users and international support. I also think getting a lot of indie songs will get many more people visiting iTMS.

 

[ozubahn]

Originally posted by dguisinger
True, however with merchant accounts there is usually a minimum fee per transaction, for example $0.05 or $0.10.

Apple gets around this as much as possible, by grouping purchases made over a 1-2 day period.

That is the micropayments problem I'm referring to. Apple pays 65 cents per song to the labels, and they would rather not pay an additional several cents to the credit card company. Aggregating purchases helps, but there are a lot of people who might by a song or two per week. This is especially true of the kids, who often don't have that much money and are reluctant to spend large amounts of it within any two-day period.

And then, of course, there is the fact that a ridiculous percentage of gift certificates and cards are never actually redeemed. Good for Apple.

 

[C14ru5]

I have an idea for Steve: What about Apple buying Apple Records, thereby ending all possible name disputes AND putting all those easy-selling Beatles songs out for sale?

Well, perhaps it isn't so realistic, but it's a good idea, right?

 

[solvs]

I never considered the kids' aspect. I just assumed people who would use the service would have credit cards. If you didn't have credit/debit cards, I figured you'd be a P2P'er. But this is a great idea - for gifts, too. And people who don't want to use their CC, for 1 or 2 songs here and there especially.

 

[C14ru5]

Yes, I agree.

In Norway, the average Joe is completely paranoid when it comes to credit card payment on the net. Such an approach from Apple would give a more "easy-going" attitude, which again results in higher sales.

 

[macgroove]

Can someone please explain to me what "indie" labels are.....

I am not too familiar with tech-talk on the music industry... Hope someone can clarify

 

[dstorey]

Originally posted by C14ru5
I have an idea for Steve: What about Apple buying Apple Records, thereby ending all possible name disputes AND putting all those easy-selling Beatles songs out for sale?

Well, perhaps it isn't so realistic, but it's a good idea, right?

It would be cool if apple bought apple records...ending the name dispute et all and allowing them to even sign little known acts and release them via itms as i mentioned in another thread a while ago...however it wouldn't help with the beatles...they are released on apple records but wako jacko controls the rights to the songs and i wouldnt like it if apple bought him

 

[Digipimp]

Originally posted by macgroove
Can someone please explain to me what "indie" labels are.....

I am not too familiar with tech-talk on the music industry... Hope someone can clarify

It's just short for independant record labels, in other words every other record label except the major 5.

 

[C14ru5]

The way I see it, "indie" is equivalent to "underground". Indie labels are small labels on small budgets signing small artists, thus they must emphasize subliminal value instead of commercial value.

...but of course that makes no sense. Indie labels are just as interested in making money as the rest of the business

 

[Stella]

Apple will do this and that blah blah blah, all very nice but ... Apple must focus on bringing ITS to the rest of the world.

But it is good that Apple is trying to make it more appealing and thus getting more ahead of the competition.

 

[bennetsaysargh]

i have been suggesting the apple gift card since the iTMS first came out! i told it to the manager of one of the stores, and he said that is a great idea and i should get it heard.
this would help get the international people. even though there are no apple stores outside the US and some people in the US without an apple store by them, they could sell it at most apple re-sellers.

problem solved. now to get windows and indies