Posts Tagged ‘ITunes’

iTunes Dominates the Market

October 9, 2008

A survey of 1,148 Internet users in the summer of 2008  revealed 58% of people believe iTunes is the top fee-based digital music service or download store according to a report from market research firm Ipsos.

By far the best known brand is also iTunes with an unaided awareness of 39%. (Second is Napster with just 13%).
Hopefully this dominance won`t be a problem for the music industry to establish or improve their business or pricing models. These figures show that most people still think there is just one brand out there. And if you know just one brand, you won`t know the business or pricing models of other brands…  right?
Best example: Maybe one of the most innovative music services out there at the moment, but it faces incredibly low unaided (0%) and aided (6%) awareness.
And the time it takes to get a high awareness, even when you are a “mainstream brand” is a long journey. This is shown by the Amazon example, who get just 5% unaided awareness in their first year in the music download business.
So in the near future iTunes will show us the way…if we like it or not…


Itunes Finally Goes Subscription? Too late?

August 30, 2008

Well the rumour leaked already last week… for the few that didn`t heard it: The baby is called Itunes unlimited… and according to an anonymous source, the subscription service will feature on-demand songs at 256 kbps and cost $130 per year, or $100 for existing MobileMe subscribers. It will come in fall …

We have been talking about this for years now… and finally it`s coming…

Why am I posting this? … Cause I was thinking again about this Google China music service… that`s where we are heading… The Itunes price point is too high… it doesn`t “feel like it`s free”. I don`t have the data but I think there is a big risk that ITunes will cannibalize their own “a la carte” download revenue, while not getting any new customers… well we will see…

Amazon vs. iTunes? Different Target Groups?

April 23, 2008

It seems so… NPD says… see an interesting article on ars technica.

“(…) only 10 percent of Amazon MP3 customers had previously bought music through iTunes, showing that Amazon is building its own user base that is independent of the ones patronizing other stores. In fact, there are a number of demographics that differ between Amazon MP3 and iTunes users, NPD says. Amazon has a stronger following among male users (64 percent, compared to iTunes’ 44 percent), although iTunes is more popular among teenagers between 13 and 17 (18 percent, compared to Amazon’s measly three percent).”

On first sight and thought: People with no iPods, new in the digital world, normally ordering cds… discover music as download…. and buy at amazon? But what happens then?

Why should I stay at Amazon?

Besides the “hardware factor”, what could be a lock in effect for a music service that makes sense?
Just a brand ” well known from the analog world”, will not be enough…
Context? Community? Recommendation Systems? Subscriptions? Hardware bundle?
Anything else?