Search Slyck  
Apple's iTunes Sells 1 Million Videos
October 31, 2005
Thomas Mennecke
Font Bigger Font Smaller
While some say the monopoly Apple has over the industry sanctioned music (and now video) service is a detriment, others feel its power keeps the music industry in check. Steve Jobs, co-founder and CEO of Apple, has managed to hold the line against the music label's desire to increase the price of the iTunes music store.

The music industry is largely unhappy with the current pricing scheme offered by Apple, and feels entitled to variable pricing. This would equate to higher prices for more popular music, and lower prices for everything else. However the lower pricing tier would be largely invisible since most of the music sold is top 40 and pop hits.

Steve Jobs appears to recognize, if only for Apple's best interests, that prices need to remain where they are if they stand any chance against free P2P networks. Calling music labels "greedy", he has maintained that iTunes' prices will remain where they are.

So far, Apple's control over the industry-sanctioned market appears to have paid off somewhat for the consumer. It is the only service that allows the individual to burn or transport music, albeit limited. In addition, if an individual terminates the service, their music collection doesn't vanish. Conversely, Napster and Yahoo continue to have trouble finding a market, as their rental service removes the subscriber's tracks once the service is terminated.

Building on their already established popularity, on October 12th Apple released their video iTunes store. This release coincided with the release of their video/MP3 iPod. It appears Apple is set to once again corner the industry-sanctioned market, as after 20 days it has already sold 1 million videos.

"Selling one million videos in less than 20 days strongly suggests there is a market for legal video downloads," said Steve Jobs, Apple's CEO. "Our next challenge is to broaden our content offerings, so that customers can enjoy watching more videos on their computers and new iPods."

True enough that 1 million videos in 20 days is an impressive feat. Whether this is simply a knee-jerk reaction to a new service or the start of yet another Apple dominated market remains to be seen.

This story is filed in these Slyck News categories
Authorized Music Store :: iTunes
File-Sharing/P2P Related :: Statistics/Analysis

You can discuss this article here - 18 replies

© 2001-2018