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Converge is Key to Apple's Music Strategy
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-05-01
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No one knows more about creating excitement and buzz than Apple's Steve Jobs who regularly monopolizes media coverage despite a meager 4% market share (of which I am proud to say I am a member). But a lot of the attention is well-deserved as it takes it's mantra "Think Different!" seriously, whether it's redefining how we view PCs & laptops to betting on a Unix-based operating system (OS X). It was therefore no real surprise to see web & print pages replete with stories of Apple's 'killer' music service weeks before it's unveiling.

The first notable point is its differentiation from other online music services that have bet on the subscription model by emphasizing the retail side of its online offering, right down to calling it a music store. Apple's bet is that people still want to own music, just without all the trappings of song fillers and CD sticker shock.

Nor is Apple ambiguous as to what ownership of a purchased tracks means, giving consumers unlimited burning ability "for personal use," porting to any iPods, as well as the ability to play songs on up to three separate Macs.

But more impressive is the convergence of its various tools - desktop/laptop, device (iPod), and line of multimedia software from iTunes to iPhoto, iMovie and iDVD - to provide an entire entertainment experience. To date, not other company has been able to offer such an easy and seamless system for music lovers to buy and enjoy their favorite tracks (200,000 major label songs), because they lack one or another of the key segments in the digital distribution system. In the end, while Jobs ill-fated strategy of remaining vertically integrated may have allowed Microsoft to control 95% of the PC market, it may just become Apple's blessing in the new digital music market.

Related News from Mi2N:
» Apple Launches The ITunes Music Store
» Apple Introduces New IPods
» Creative Introduces Three Exciting New Speaker Systems To Match The Apple IPod


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