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iTunes sells 2 Million Songs
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How would they handle price differences? [edit] (For international iTMS.) [/edit] Will they tie your credit card billing adress to the prices shown on iTunes? I sure hope they don't regionalize the songs. I'd like to have access to Japanese music if that ever launches...
I don't think the 29% drop in sales for the second week is a big deal. Blockbuster movies routinely see significantly bigger drops after the opening weekend. The bigger question is where will it stablize?
Other questions:
1) How many Mac users that are able to use iTMS (i.e. U.S. users) are yet to use the service? (I haven't tried iTMS yet, but I am mightly tempted. I fear that once I get into it, I'll drop a ton of money without really realizing how much I've spent!
2) How many people were induced to "switch" because of iTMS?
3) Would it be possible for educational institutions (who owns more Macs - proportionally speaking - and usually have fast internet connection) to set up an iTMS "station" where students can purchase songs and download into their iPod or burn an audio CD? How to handle credit card info on a public computer? Or will hardheaded school teachers argue that students should not be using school resources to download music?
I don't think other companies will be able to duplicate Apple... There will always be some clever finance guy in their department who wants to make finance based (instead of user based) decisions. If such wasn't the case, why would anyone come up with a fee based service or rental based service? Can you imagine a music store where you have to pay $20 a month to get in then you can ask the clerk for all the cd singles you want while there, but one at a time..? Sure, it might be economically sensible but it's so far off the norm of most music buyers, it's silly.
I don't think the 29% drop in sales for the second week is a big deal. Blockbuster movies routinely see significantly bigger drops after the opening weekend. The bigger question is where will it stablize?
Other questions:
1) How many Mac users that are able to use iTMS (i.e. U.S. users) are yet to use the service? (I haven't tried iTMS yet, but I am mightly tempted. I fear that once I get into it, I'll drop a ton of money without really realizing how much I've spent!
2) How many people were induced to "switch" because of iTMS?
3) Would it be possible for educational institutions (who owns more Macs - proportionally speaking - and usually have fast internet connection) to set up an iTMS "station" where students can purchase songs and download into their iPod or burn an audio CD? How to handle credit card info on a public computer? Or will hardheaded school teachers argue that students should not be using school resources to download music?
I don't think other companies will be able to duplicate Apple... There will always be some clever finance guy in their department who wants to make finance based (instead of user based) decisions. If such wasn't the case, why would anyone come up with a fee based service or rental based service? Can you imagine a music store where you have to pay $20 a month to get in then you can ask the clerk for all the cd singles you want while there, but one at a time..? Sure, it might be economically sensible but it's so far off the norm of most music buyers, it's silly.
Re: Re: just a reminder
Sorry about that.
Since it is a US only service, I was using US numbers. World wide market share I think is only 2.1% now...
Originally posted by Snowy_River
Uh... 1 in 20 people in the US that own a computer today...
Let's not pretend that the US is the whole world. That can make people hate the US.
Sorry about that.
Since it is a US only service, I was using US numbers. World wide market share I think is only 2.1% now...
Re: "toe in the water"
It's completely moronic that all the labels aren't jumping all over this. The iTMS is about as pure a form of capitalism as you can have. What else has:
1. instant gratification
2. minimal transactions/transportation costs for record cos.
3. minimal transaction costs for consumers
4. low 'cost of entry' for consumers ($.99 a song--less than a cup of coffee!)
5. reasonable level of DRM (more than CDs)
6. minimal cost to expand the selection (no inventory costs) and hence create more potential sales
Sure the labels can try to offer a similar service themselves or find someone who'll do it cheaper, but no one else can make this whole thing as easy and pleasurable for the consumer, which is a big reason why it's been so successful.
It's completely moronic that all the labels aren't jumping all over this. The iTMS is about as pure a form of capitalism as you can have. What else has:
1. instant gratification
2. minimal transactions/transportation costs for record cos.
3. minimal transaction costs for consumers
4. low 'cost of entry' for consumers ($.99 a song--less than a cup of coffee!)
5. reasonable level of DRM (more than CDs)
6. minimal cost to expand the selection (no inventory costs) and hence create more potential sales
Sure the labels can try to offer a similar service themselves or find someone who'll do it cheaper, but no one else can make this whole thing as easy and pleasurable for the consumer, which is a big reason why it's been so successful.
According to a wired article:
http://www.wired.com/news/digiwood/0,1412,58706,00.html
So, last year, all the other legal download services combined sold about 400,000 songs.
Apple has sold 2 million in 16 days.
arn
Re: just a reminder
Steve has GOT to be in heaven this week.
1. Apple is a music company and the biggest almost overnight.
2. Pixar is releasing NEMO and let's face it, it will rock.
3. The Powerbook releases met with wide cheers.
4. The noise surrounding forthcoming 970 based Macs is positive and loud.
As for stock, buy on rumor, sell on news, so it may be quite some time till it reflects anything exciting. One of the disadvantages to having billions in the bank. Stock price is largely treated like bonds.
He DID say it was the year of the laptop. Please let there be a 970 based Powerbook right away . . . .
I may have to send Steve one of the few things he does not already have: a rocket!
Rocketman
Steve has GOT to be in heaven this week.
1. Apple is a music company and the biggest almost overnight.
2. Pixar is releasing NEMO and let's face it, it will rock.
3. The Powerbook releases met with wide cheers.
4. The noise surrounding forthcoming 970 based Macs is positive and loud.
As for stock, buy on rumor, sell on news, so it may be quite some time till it reflects anything exciting. One of the disadvantages to having billions in the bank. Stock price is largely treated like bonds.
He DID say it was the year of the laptop. Please let there be a 970 based Powerbook right away . . . .
I may have to send Steve one of the few things he does not already have: a rocket!
Rocketman
Just like to comment on this. I disagree completely, just so you know.
If you look at the demographic that is keen to get current pop songs, I would wager that most of them 1) are able to get the tracks of P2P, 2) are capable of justifying it to themselves (for lack of $, say), and 3) are probably not where ITMS is getting their revenue. I do not think the yuppy mac demographic is after this stuff as much as the us at-large demographic. Of course, this is speculation, and it would obviously be cool to learn more about the distribution of purchases.
Also, since most of the pop bands nowadays are so ephemeral, most people are not really looking to fill out a back catalog of their work, either having it already or not being interested in it.
Anyhow, I think there are a bunch of reasons to think that increasing the catalog could increase sales. Imo, the biggest hurdle they have is to increase the visibility of the new tracks. Doesn't do anyone any good to add the new stuff if you don't know that it will be there. I have stopped looking because (aside from some jazz) I can not find anything other than top 40 hits and stuff from the 80s.
My question
How many of you (I guess this would make a good poll - any mods reading?) have gone out and bought a physical album to listen to since the launch of iTMS? If you have, was it one that was available on iTMS or not?
How many of you (I guess this would make a good poll - any mods reading?) have gone out and bought a physical album to listen to since the launch of iTMS? If you have, was it one that was available on iTMS or not?
Where's The Quality?
AAC at 128 is OK at BEST....
I've downloaded about forty-fifty bucks of albums and songs, thought it was so cool. But listening to them through my Mackie 624 studio monitors, they quickly become tiring and lack in depth.
I've said (pro audio newsgroup) apple would have to improve the bit rate before I'd try again...
(he said as he downloaded a few more songs I had to hear right now...)
Hopefully more will want a higher quality and apple will increase the res. of the files
-Michael Droste
AAC at 128 is OK at BEST....
I've downloaded about forty-fifty bucks of albums and songs, thought it was so cool. But listening to them through my Mackie 624 studio monitors, they quickly become tiring and lack in depth.
I've said (pro audio newsgroup) apple would have to improve the bit rate before I'd try again...
(he said as he downloaded a few more songs I had to hear right now...)
Hopefully more will want a higher quality and apple will increase the res. of the files
-Michael Droste
If Apple doesn't open up to the international market or pc users, I would guess about 35 million in the first year, averaging 3 million a month. They can't stay on the pace they're on now, but it will still be a monumental success. Of course, if they open up to mac users outside the US or pc users, that number is going to be a lot bigger.
Re: My question
I went out on a binge and bought about 8 albums last weekend. The reason I went the the store was to buy an album that I saw on the iTMS. Personally, I am unsatisified with the 128 kbs encoding, and less concerned about the drm, but somewhat concerned (no resale value, unlike CDs).
While I have bought 2 albums and several songs off the iTMS, I will likely be buying more CDs then iTMS albums.
BTW: The record labels really should be all over the iTMS:
1. DRM included (NOT in CDs!!!)
2. Used music market = dead for DRM music
3. Impulse buying (hey I bought a bunch of stuff even though I prefer CDs!!)
4. Low inventory cost - even old stuff and unpopular stuff can be kept available at minimal incremental overhead, hey every sale counts!
5. More and more people buy CDs just to rip them for their computer/MP3 player - CDs will become far less popular with the convenience of on-line music stores (this will save the music industry huge money not to have to press and distribute CDs).
....
I went out on a binge and bought about 8 albums last weekend. The reason I went the the store was to buy an album that I saw on the iTMS. Personally, I am unsatisified with the 128 kbs encoding, and less concerned about the drm, but somewhat concerned (no resale value, unlike CDs).
While I have bought 2 albums and several songs off the iTMS, I will likely be buying more CDs then iTMS albums.
BTW: The record labels really should be all over the iTMS:
1. DRM included (NOT in CDs!!!)
2. Used music market = dead for DRM music
3. Impulse buying (hey I bought a bunch of stuff even though I prefer CDs!!)
4. Low inventory cost - even old stuff and unpopular stuff can be kept available at minimal incremental overhead, hey every sale counts!
5. More and more people buy CDs just to rip them for their computer/MP3 player - CDs will become far less popular with the convenience of on-line music stores (this will save the music industry huge money not to have to press and distribute CDs).
....
Re: My question
I've got iTunes 4 and a cable modem, but I went out last weekend and bought four new CDs (and six vinyl records) anyway because one of the local record shops was having a big sale!
I've looked briefly at the iTunes catalog, but it seemed like almost everything I was interested in I already owned - my tastes are pretty boring and mainstream - and since I can't use AAC files with my Archos Jukebox, that limits the value of the files that Apple's selling.
I've got iTunes 4 and a cable modem, but I went out last weekend and bought four new CDs (and six vinyl records) anyway because one of the local record shops was having a big sale!
I've looked briefly at the iTunes catalog, but it seemed like almost everything I was interested in I already owned - my tastes are pretty boring and mainstream - and since I can't use AAC files with my Archos Jukebox, that limits the value of the files that Apple's selling.
Re: All this...
I haven't seen any either, but I think some spots were shot right before the iTMS release... remember the casting call for people who were not shy about their singing voices.
I haven't seen any either, but I think some spots were shot right before the iTMS release... remember the casting call for people who were not shy about their singing voices.
All I know is that I haven't bought a CD in years....Yes, years, yet, I was intrigued with the music store. Now, I've spent more money in the ITMS than I have ploping for overpriced CDs. Great going Apple. Here's to 10 million more!!!
Re: All this...
The only thing I've seen is an ad in the last two weeks Newsweek magazines on the inside front cover advertising the service along with the iPod and iMac as a complete music solution thing. I didn't read it too closely. They've got a girl jamming out listening to her iPod and the text very small to the left of the two page spread.
The only thing I've seen is an ad in the last two weeks Newsweek magazines on the inside front cover advertising the service along with the iPod and iMac as a complete music solution thing. I didn't read it too closely. They've got a girl jamming out listening to her iPod and the text very small to the left of the two page spread.
Re: Re: All this...
there's a full page ad on the back of the current issue of Time Magazine with a Gibson Guitar all alone on a white background with AppleMusic.com underneath in black type. That's all I've seen.
there's a full page ad on the back of the current issue of Time Magazine with a Gibson Guitar all alone on a white background with AppleMusic.com underneath in black type. That's all I've seen.
Yeah, I think it should be Apple's top priority to get a worldwide consumer base on the Mac before moving it to Windows. I know there are ongoing talks, but an article the other day said something about international release by the end of the year. It would be very disappointing if it takes this long.
Bad Math. Divide to get your daily rate for each week then subtract the 9 day total from 7 day. You'll find the drop off was roughly 22%
Neither do you TM. Neither of us knows the Marketing and Logistics of this service. But one has to presume that the company that reaches Critical Mass will be able to create new profit structures form it's success. It's more than adding up weekly sales and muliplying by 52.
That's easy. When I buy something in Canada my Credit Card company does the conversion for me. Apple doesn't have to blink an eye. It's a USD .99 period if they remain equal in licensing.
I tend to hear that about Mackie Monitors with lots of music. Poor Mans Genelecs(at least the 824s)
Re: Where's The Quality?
You have to step back ask yourself, "How many people using the iTMS will be listening to their purchases on professional monitors?". Not many at all.
Most of them don't have the ear and are content listening to their purchases on *CONSUMER* earphones or speakers, hopefully an iPod.
From that perspective, a 128 AAC file is overkill.
You have to step back ask yourself, "How many people using the iTMS will be listening to their purchases on professional monitors?". Not many at all.
Most of them don't have the ear and are content listening to their purchases on *CONSUMER* earphones or speakers, hopefully an iPod.
From that perspective, a 128 AAC file is overkill.