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Music Businesses Media Apple

iTunes One Year Anniversary Sparks Comparison 344

An anonymous reader writes "CNet News is running a story about the upcoming one year anniversary of Apple's iTunes service. It gives a pretty good summary of the year in online music, with a nice chart comparing each service's user base now and then. The most interesting quote in the article is from a record executive stressing that the industry is quietly hoping that the online music stores will start selling songs in compatible formats. As a sidenote, the headline story at the beginning is based off this page."
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iTunes One Year Anniversary Sparks Comparison

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  • compatible formats (Score:5, Insightful)

    by Lord_Dweomer ( 648696 ) on Monday April 26, 2004 @09:04PM (#8978656) Homepage
    "The most interesting quote in the article is from a record executive stressing that the industry is quietly hoping that the online music stores will start selling songs in compatible formats."

    [puts on tinfoil hat] I'm sure they'd love that. The saying from LoTR comes to mind:

    One Ring to rule them all
    One Ring to find them
    One Ring to bring them all
    And in the darkness bind them.

    I wouldn't mind having compatible formats either, I just don't want the RIAA having absolutely any say in it whatsoever, because they don't exactly have the best track record of making decisions which are beneficial to customers.

    • by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:34PM (#8978842)
      I wouldn't mind having compatible formats either, I just don't want the RIAA having absolutely any say in it whatsoever, because they don't exactly have the best track record of making decisions which are beneficial to customers.

      The RIAA is going to have to be involved in any DRM system that wants to catch on, because simply put, they control most of the recognizable music in the world. Even if new indie labels start to catch on, that still won't account for the massive back catelog.
  • by Stopmotioncleaverman ( 628352 ) on Monday April 26, 2004 @09:04PM (#8978658)
    Although Apple has taken a largely proprietary approach to iTunes, it made one major concession by making its software compatible with Microsoft's Windows operating system, effectively untying the iPod from the Mac in hopes of tapping into the much larger market for Windows PC users.

    Which is a massive part of the reason that they have been so successful at totally owning all the competition. If they'd just released iTunes for the Mac, they'd be drowned out by those who supported Windows-based clients simply by force of numbers. A very clever move by Apple: coupled with a huge amount spent on advertising this is a sure-fire way to make money and stay on top.
    • by Anonymous Coward on Monday April 26, 2004 @09:15PM (#8978734)
      Wait, releasing itunes for a platform that commands over 90% of the market counts as clever? Huh. I would have went with obvious but I guess we have different clever standards.
      • Apple has been very successful in the past marketing to 5% of the market, but they realized that that strategy wouldn't work for online music.
      • by Bricklets ( 703061 ) on Monday April 26, 2004 @10:19PM (#8979112)
        releasing itunes for a platform that commands over 90% of the market counts as clever? Huh. I would have went with obvious...

        Apple's number one goal is to increase the number of Mac users out there. What happened during the two years where iPods were exclusively for Macs was that you saw some people buy a Mac just so they could get an iPod. Then (and I remember reading this in an interview with Jobs in Rolling Stone), Apple had to make a conscience decision on whether it was more important to leverage iPods to increase Mac sales or whether they should try to dominate the MP3 Player market. They decided the latter, and and it has turned out to be a good decision.

        So it was a obvious choice to make it compatible on Windows for an MP3 Player company. For for a company like Apple who's main product is the computer, the choice wasn't so obvious.
      • on the day Apple declared the iTumes MusicStore would support Windows they already accounted for something like 90% or 95% of all online music sales........ seeing as that was ALL online music sales coming from the 5% or so Mac users........ that says something. i am not 100% sure what it says. it says something about Mac users, or the store or both or...?
        no matter how you spin that data, it's obvious the iTMS works to a degree that customers will come back.

        that being said i should go use up the last of my
    • It'd be interesting to see some figures showing the numbers of Mac/Windows users and their respective purchases.

      I'd certainly expect to see that Mac users would be more likely to buy music from the store, which I'd attribute mainly to the lack of P2P clients available on the Mac, which has certainly helped Apple establish themselves in the market with the Mac version of iTunes.
      • by FireBreathingDog ( 559649 ) on Monday April 26, 2004 @09:38PM (#8978866)
        I'd certainly expect to see that Mac users would be more likely to buy music from the store, which I'd attribute mainly to the lack of P2P clients available on the Mac, which has certainly helped Apple establish themselves in the market with the Mac version of iTunes.

        Dude, what [versiontracker.com] are you talking about [chaosmint.com]?

        I take it you don't have a Mac. Well, I don't need 10,000 different programs, 99% of which have shitty interfaces sitting atop half-assed implementations. (Then again, this is the place where 'vi' qualifies as a nice interface...so what should I expect?)

        My personal favorite client is Acquisition [acquisitionx.com]. Nice interface, works well, very Mac-like.

        • by useosx ( 693652 ) on Monday April 26, 2004 @10:34PM (#8979199)
          Nice post, but a little out of date, as I see no mention of Poisoned [gottsilla.net] which is a front end to giFT. giFT supports FastTrack (Kazaa), Gnutella, and OpenFT (a hot little network). Personally I'd rather run Poisoned than Kazaa any day.

          Furthermore, the BitTorrent community is alive and well on OS X. Azureus [sourceforge.net] works really well, and there's a hot little native client [sarwat.net] that is better than the standard one.

          I've been using the Overnet command line client [overnet.com], which sucks but gets the job done better than the various front-ends floating around.

          And then there's Hotline, Carracho, and the new open-source client-server model "Wired" [versiontracker.com].

          Enjoy.
  • Leave it to a Microsoft spokesman to complain about "closed ecosystems". Heh.
  • by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:10PM (#8978692)
    It's interesting to me the way the three major players have laid out their strategies for digital music...

    The Apple camp exists in a silo, as usual. Music purchased at the iTunes Music Store is only playable in iTunes, and only natively transfers to an iPod family portible.

    The Real camp is using their proprietary format for audio that only RealPlayer can play in software, and there's only a limited number of portables [real.com] that are compatible. In fact, only one of those portables is a true music player, the rest are Palm devices because there's a compatible player for Palm.

    But Microsoft's only entering into the game as a software provider. That means there's no Microsoft music store, but everybody major other than Apple and Real are using WMA as the secure format of choice, including Napster, Wal*Mart, and BuyMusic. They've also got the largest selection of compatible players.

    Really, going the Microsoft route for your DRMed music collection seems like the best answer to me, because you can then shop arround for the best price on single-track buys, and often find the hot songs for 79 or 88 cents. Who says the price of legal music downloads is going up?
    • I wouldn't mind the price of online songs going down but lets hope that the artist's cut goes up. http://www.downhillbattle.org/itunes/ [downhillbattle.org]
      • by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:40PM (#8978878)
        I wouldn't mind the price of online songs going down but lets hope that the artist's cut goes up. http://www.downhillbattle.org/itunes/

        Downhill Battle is an absolutely clueless group. Artists who want to directly get themselves into iTunes without any RIAA hand in the till can do so, but they also have to trade off not getting RIAA label promotional help.

        They really should be trying to get indie artists into the other DRMed music universes... or is their real agenda trying to get DRM music to fail as a whole?
      • Really, how much can you respect a group of people who state their primary purpose is to support the artist, but advocate downloading songs and sending artist a dime or more for their efforts. Downhillbattle is a silly protest group, who hasn't decided who they should protest.

        If you want to support independent artist at least get your stats from the Future of Music Coalition [futureofmusic.org]--independent artist who support and organize independent artist. You'll actually see muscians who want to stay independent, who aren'
    • The Apple camp exists in a silo, as usual. Music purchased at the iTunes Music Store is only playable in iTunes, and only natively transfers to an iPod family portible.

      Or, you know, playable in any standard CD audio device. Of which there are a hell of a lot more of than digital music players of any description. This alone is going to keep Apple on top for a long, long time. As I don't see Microsoft opening up a "hole" like that in their iron Digital Rights Infringement scheme.

    • "The Apple camp exists in a silo, as usual. Music purchased at the iTunes Music Store is only playable in iTunes, and only natively transfers to an iPod family portible."

      Or an Audio CD...which plays anywhere.

      And hey, I don't see what so bad with being stuck with the iPod and iTunes. Even if I could play AAC files in other software / hardware media players, I'd STILL use iTunes and an iPod.

      I'd be one thing if iTunes and the iPod sucked, but they don't They're fantastic. Apple is, more or less, doing what
    • Really, going the Microsoft route for your DRMed music collection seems like the best answer to me, because you can then shop arround for the best price on single-track buys, and often find the hot songs for 79 or 88 cents.

      Are you suggesting that people "shop around" for a difference of 10 to 20 cents?

      Are you suggesting that people deal with half a dozen different music stores with different interfaces and different authorization schemes (dispite using the same format) and different per-track limitations
    • by Durandal64 ( 658649 ) on Monday April 26, 2004 @10:48PM (#8979344)
      The Apple camp exists in a silo, as usual. Music purchased at the iTunes Music Store is only playable in iTunes, and only natively transfers to an iPod family portible.
      iTunes Music Service M4P's will play in any application that can play QuickTime files. Maybe you should email the WinAmp developers and tell them to use the QuickTime API instead of pissing and moaning about how no apps besides iTunes support them (oh, except for VLC, but you were too busy complaining to research that). What do you want Apple to do? Write 4 other MP3 players? They've given Windows developers the tools to do it.
    • by jimmyharris ( 605111 ) on Monday April 26, 2004 @11:18PM (#8979636) Homepage

      Microsoft is only entering the game as a software provider? No Microsoft music store? Did you think Microsoft could really resist leaving any pie untouched?

      http://news.com.com/2100-1027-5176411.html [com.com]

      Microsoft said Friday that the second half of the year will see the launch of its online music store, a long-expected entry into an increasingly crowded business dominated by Apple Computer's iTunes.

      The software giant this week began offering sneak peaks of the service to independent record labels at the South by Southwest trade show in Austin, Texas. Though Microsoft remains mum about specific details, this week's dog and pony show signals the company's heightened ambitions to enter the world of online music sales with a bang.

      • Microsoft has the financial leverage to stick this out. They'll need it.

        No other company has understood that Apple's success comes from the successful and uncomplicated integration of a good, simple audio player with an application with a simple interface for getting and playing your songs.

        Other players may be cheaper, but their interfaces suck or place many restrictions. Consistency is the hobgoblin of the PC industry, which should not be confused with compatibility. Given that, there are gazillons of pl
  • by linuxbaby ( 124641 ) * on Monday April 26, 2004 @09:10PM (#8978699)
    I run (and am still the sole programmer for) CD Baby [cdbaby.com] - one of the companies that is supplying a huge amount of music to all of these big legal download music services. Our digital catalog of independent music is even bigger than than the entire Universal Music Group record labels', combined. (Over 230,000 songs now, and adding about 75 new albums a DAY.)

    Since the first two Slashdot stories about CD Baby getting independent music into Apple iTunes (see iTunes Indie Meeting Notes [slashdot.org] and Sell Your Music on iTunes Music Store [slashdot.org]) - things are starting to standardize.

    It's actually really interesting watching this happen, from a tech point of view. These big companies appear to have their stuff together from the outside, but I've had quite a few conversations where the techies at the big giant download music service are asking us, Uh... what do you recommend? How are the other companies doing it? Others say things like, This is how Universal Music sent us their catalog - so can you just imitate that? And voila! Watching new standards form.

    I get the feeling that immediately after the initial announcement of Apple iTunes, and their 1-million downloads, lots of companies felt they just had to jump in as fast as possible, without any time to think out the long-term strategy. That's part of the reason why they're so incompatible. No time to communicate with others. (And plenty of paranoia about revealing their plans, I'm sure.) Things are settling and standardizing now, though.

    Anyway, as you can tell I'm a very open guy, and this summer I'm going to take the time to do some detailed technical write-ups of all the things that go on behind the scenes (including our cool 40-terabyte digital audio warehouse). It's pretty interesting stuff.

    (For details of what we do, see the CD Baby Digital Distribution [cdbaby.net] page. Tell any good artists you know who want to get their music onto these services!)

    --
    Derek Sivers, CD Baby

  • Single format (Score:5, Interesting)

    by antic ( 29198 ) on Monday April 26, 2004 @09:11PM (#8978703)
    Will they get their single format? Every provider will have their own format/agenda to push. Some will want DRM, others will have alternatives, users will want more freedom, geeks will want the freedom plus more freedom, etc.

    And I still don't see people paying for it all. I haven't bought a CD in 5 years. Most people I know went through their big CD-buying years in their late teens, and most of these people don't have the credit cards required to buy up big at online music stores. Sure, I'd bet that stores have features allowing parents and relatives to set up accounts with $50 to splurge on music as a gift, but that's still not a way for kids to easily take their cash from flipping burgers and spend it impulsively on music.

    Are (m)any artists releasing MP3-laden CDs to physical music stores and selling them there?

    Are the RIAA looking anything BUT greedy when they take away the physical cost of producing an actual CD and liner-notes, and then want to increase the price of a music track online?

    Or maybe it's all in the marketing. I work online day in and day out, and I've never even considered buying music online. I just do without. My girlfriend listens to a lot of new/pop music as it comes out, and the first thing she'll say to me with regard to it is something like "Hey, can you download x for me?". The marketing of online music sales must be at a pretty low level on radio stations and television (zilch in Australia).
  • and lacking... (Score:5, Insightful)

    by dj245 ( 732906 ) on Monday April 26, 2004 @09:18PM (#8978751) Homepage
    The most interesting quote in the article is from a record executive stressing that the industry is quietly hoping that the online music stores will start selling songs in compatible formats.

    and The most interesting quote NOT in the article is from Steve Jobs stressing that he can't possibly make money if the record industry jacks the prices to $2.50/song and bundles crappy songs with good songs, and is quietly scheming to force the music stores to do.

    • Re:and lacking... (Score:5, Insightful)

      by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:49PM (#8978935)
      and The most interesting quote NOT in the article is from Steve Jobs stressing that he can't possibly make money if the record industry jacks the prices to $2.50/song and bundles crappy songs with good songs, and is quietly scheming to force the music stores to do.

      The thing is, Apple's not the only front. The RIAA would also have to convince Napster 2.0, BuyMusic, and Wal*Mart to do the same...

      Wa-wa-wa-Wal*Mart? We're talking about one of the biggest physical CD retailers in the nation. Wal*Mart's well-known for their tendancy to squeeze suppliers and drop ones who don't bend to their demands. So, this could get very interesting if they decide to throw their weight around.
  • by Anonymous Coward on Monday April 26, 2004 @09:20PM (#8978763)
    Looking at the comparison table, it isn't fair to list Rhapsody in there, with Rhapsody being a streaming service and almost every other player in there is a download service. Interesting to note that , RealPlayer music store is listed in there too and has a pretty good download number for something that opened just one-two months back.

    Rhapsody with a user base of 489,000 is doing pretty good I beleive with each user paying $10 / month . Thats like 4.89 million. Apple is way ahead in the competition with almost double the users compared to its successor.
    • by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:37PM (#8978858)
      Looking at the comparison table, it isn't fair to list Rhapsody in there, with Rhapsody being a streaming service and almost every other player in there is a download service. Interesting to note that , RealPlayer music store is listed in there too and has a pretty good download number for something that opened just one-two months back.

      Napster, by that logic, is double-dipping because they offer both a 99-cent download-and-keep service, and a $9.99 a month stream-but-don't-keep service.

      You're right, the chart is not exactly apples-to-apples comparing... Rhapsody and Napster are offering a different service model altogether compared to the other stores, even though their owners are also keeping their toes in the store model just in case.
    • Rhapsody IS a different but you can still "buy" songs from the service for 0.79 and burn it to CD.

      I think it is the best of both worlds. You get unlimited streaming of over 600k* songs (according to their web page). You can search for artists, songs, albums, etc and pick exactly what you want with pause, replay, ff rew etc.., or use the preconfigured radio stations and create your own genre of radio stations and just let it play. While the radio service is going, you can skip to the next song so you are
  • by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:23PM (#8978772)
    None of the RIAA-approved DRM systems right now plays ball on Linux, period. I know most people who drink the GNU/Kool-Aid absolutely hate DRM because all content should be free, but that just ain't happening any time soon...

    So, while Linux tries to capture the desktop environment, this is one piece of technology that is popular on the Windows and even Macintosh platforms, but just simply isn't on Linux. Open Source projects just aren't going to fit the bill here, somebody needs to convince the DRM people that they'll be safe in writing decoders for Linux.

    Is there any way that a DRM-compliant music player could survive in the Linux world without risking being captured in the unencrypted digtal form... or is this something Linux just will never be able to do?
    • There's only one way for music commerce to be available to Linux users. It's a two-step process.

      1. There must be a significant number of Linux users. There aren't. The various roadblocks associated with this are left for another discussion.

      2. Linux users must restrain themselves. If the vendors see Linux users as a hostile environment, they're not going to ship their products on that platform, no matter what the market mass is. That means no reverse engineering, no hacking, no "just to see if I could," no
    • by Goonie ( 8651 ) * <robert.merkel@b[ ... g ['ena' in gap]> on Monday April 26, 2004 @11:06PM (#8979509) Homepage
      Your argument rests on the false assumption that Windows and Mac provide a safe environment for DRM systems. The only difference between DRM for Linux and DRM for closed-source platforms is that there is at least an illusion for closed source platforms that DRM will work.

      In practice, this is complete BS. Aside from Playfair, there are innumerable programs out there that provide "virtual sound cards", so you can rip the output of any sound player straight to your hard drive.

  • by elinenbe ( 25195 ) on Monday April 26, 2004 @09:24PM (#8978778)
    I used to download almost 5 full albums every week illegally and once itunes came out I started buying music. I become addicited to things, and I recall purchasing almost 15 albums from itunes in ONE day!

    Now, having to burn and re-rip songs to get them onto my flash based player and the increasing cost of albums (Dark Side Of The Moon is 16.99 for _9_ songs) what is my incentive to be legal anymore? It is currently less effort for me to get the album off of a kazaa then spending an hour to make nearly $20.
  • Convert the file to mp3 and you can play it on any player. It was done before with CDs. How do you think all those mp3s end up on Kazzaa? If you want to move your music you are going to have to do some work. Sorry. Always been that way. Remember taping albums to listen to them in the new fangled walkman?

    Apple might have come out with the first big hit with iTunes, but there are always other that come along, make what was the shiznitz look lame. It will happen, maybe not today or tomorrow, but it wil
    • by LostCluster ( 625375 ) * on Monday April 26, 2004 @09:44PM (#8978909)
      Your own question: Why not a neutral file format that all can use and enjoy - not locked into anything?

      Your own answer: How do you think all those mp3s end up on Kazzaa?

      The dumb-user's urge to file share things that under copyright is why the content industry doesn't want to release things in open formats anymore.
  • by mfifer ( 660491 ) on Monday April 26, 2004 @09:27PM (#8978805)
    ...but iTunes gave me the outlet to do what I wanted to do: LEGALLY BUY MUSIC ONLINE.

    *NOW* we have options, but until iTMS, we DIDN'T.

    Thanks, Apple, for that at least.
    • by Fuzzle ( 590327 )
      I was buying more music that I liked through eMusic for years before iTMS came along. What iTMS did was give the MASSES the music they wanted, in an easy to use interface. iTMS still doesn't have the majority of music I like, but it's still a great service.
  • Bleep is my fave (Score:5, Informative)

    by Twid ( 67847 ) on Monday April 26, 2004 @09:27PM (#8978806) Homepage
    My current favorite download service is Bleep

    http://www.warprecords.com/bleep/ [warprecords.com]

    Great electronic stuff from guys like Squarepusher and Plaid in un-DRM'd 192k LAME-encoded mp3 goodness.

    I wish iTunes had a higher quality option. It's not that 160k AAC sounds bad, but if the download is all I get, I'd like a higher quality format to get at the same time.

  • by trip23 ( 727132 ) on Monday April 26, 2004 @09:28PM (#8978813)
    can be a funny thing... Nowhere else you'll find a sucessfull and innovative company compared to a Soviet grocery store, like Real's CEO did. So as a linux-using Communist (in the words of Mr. Ballmer of MS-Fame) I now can buy music in a Soviet Grocery Store located in the USA. Did I miss anything in the Cold War?
  • by value_added ( 719364 ) on Monday April 26, 2004 @09:29PM (#8978817)

    but reading the group manager of Windows digital media unit say:

    "They have spent an inordinate amount of money to generate awareness around their closed ecosystem. (But) as people get more sophisticated in this area they are going to be getting more frustrated with a closed ecosystem."

    gets me all choked up. Not in the "it brings tears to my eyes" kind of choked up, but the "the irony is so thick I think may I need a Heimlich maneuver" sort.

  • as usual, allofMP3 (Score:4, Interesting)

    by jonathan_95060 ( 69789 ) * on Monday April 26, 2004 @09:29PM (#8978818)
    ... and other russian LEGAL services are conspicuously absent.
  • by Anonymous Coward on Monday April 26, 2004 @09:30PM (#8978819)
    The most interesting quote in the article is from a record executive stressing that the industry is quietly hoping that the online music stores will start selling songs in compatible formats.
    Is the Microsoft model so compelling that every business major given the opportunity will turn to anti-consumer practices like using different file formats than everyone else? There is something slightly distressing about the need for companies to be different in ways that inconveniences consumers for no apparent reason than to be unique.

    Here's some food for thought (I understand that this is common and not just in b-school). I am a business major at UConn and my management professor insists upon keeping her test questions secrets outside of the classroom. If a student is caught distributing questions from past exams (and these are exams given through a web browser), they will be cited for academic dishonesty. The reason? These are supposedly valuable test questions that have been used over and over again and do not cause students to complain about unfair wording, etc. Now, I think the real reason is laziness combined with a disregard for the academic environment. She wants me to take time out of my schedule to review the test at her convenience because she doesn't want to do more work. There's a parallel to this article here.

    I know I'm preaching to the choir here, but this whole idea of proprietary information is simply being taken too far in our society. It is now common for people to grasp at any hint of value they see in their information, capitalize on it, and try to lock others out at the same time. They will then proceed to hoard this information for as long as they are capable. The real innovators in the business world will always have a place as they have value. For every one of them, there are ten parasites (Darl & Company?) who merely create an illusion of value but contribute nothing useful to society.

    Why have so many different file formats developed over the years? Perhaps a programmer can help me out here, but what would have been so difficult about making an open format that could handle anything you threw at it? For example, an open text file format that could be extensible to handle Word's change tracking and other features. These days with the proliferance of XML parsers, couldn't one write programs that would read/generate XML files, silently ignore unknown tags and would just work? I understand that the file formats associated with digital music are much more complex, but even considering the 'need' for DRM, where's the collaboration that makes businesses work more efficiently and offer enhanced value to the customer? It's very disappointing, and I can tell you that at least at this school, nobody even mentions a subset of this broad issue. It should be a required course in my opinion. Thanks for reading.
  • by Anonymous Coward on Monday April 26, 2004 @09:30PM (#8978822)
    The most interesting quote in the article is from a record executive stressing that the industry is quietly hoping that the online music stores will start selling songs in compatible formats.

    Why not strong arm the media playes to support more formats and let the fucking consumer decide?

  • by truesaer ( 135079 ) on Monday April 26, 2004 @09:33PM (#8978836) Homepage
    I haven't used iTunes much, based on my difficulty in finding the songs I wanted.


    I intended to download some songs from Evanescence. But I don't see any of their songs showing up in my searches! Next I tried Linking Park, but no luck there either. I did find "Ordinary World" by Duran Duran, so that was good. But then "P Control" by Prince doesn't show up...iTunes seems to have every song imaginable by Prince, but my favorite club song is not there. Next I tried Led Zeppelin, and they don't seem to have any of their songs either! They do have lots of Cranberries stuff, including things I haven't seen before so I could try those. And they have Moby tracks (although not any from Animal Rights. Which is good since that CD sucked). Finally, I decided to try for "I am the Walrus" by the Beatles. No dice there either, although I discovered that there are 6 covers of this song, including one with explicit lyrics (that shockingly I actually enjoyed the preview for)!


    So I liked iTMS overall, but they really need to get more songs in their catalog.

  • by Uninen ( 746304 ) on Monday April 26, 2004 @09:38PM (#8978870) Homepage

    Fileformats are not the only key to success. I mean, where are all the big European online strores, for example? How many ITMS competitors sell outside US?

    I think there are lots of potential customers outside US just waiting the oppoturnity to spend their hard-earned money on good and legal music.

  • by timmarhy ( 659436 ) on Monday April 26, 2004 @09:41PM (#8978884)
    "the industry is quietly hoping that the online music stores will start selling songs in compatible formats" we already have a compatable format arseholes, it's called mp3
  • by djcreamy ( 729099 ) on Monday April 26, 2004 @09:49PM (#8978941) Homepage
    I'm sick of the all the special formats. As the consumer (rather, a potential consumer) I should be able to determine the format I want. I choose 192k mp3s. I already have 10,000+ mp3s, all between 128 and 192, if I am going to buy music it has to fit with the rest of collection. Some of these formats are horrendous, like wma. Get some quality in there, please!
  • by Anonymous Coward on Monday April 26, 2004 @10:30PM (#8979178)
    Why don't more people seem to mention or know about the legal alternatives to these services.

    www.allofmp3.com
    www.3mp3.ru
    club.mp3search.ru

    It's legal even in the US due to international copyright law.
    (www.museekster.com/allofmp3info.htm)

  • by Stuntmonkey ( 557875 ) on Tuesday April 27, 2004 @12:56AM (#8980371)

    Apple is, as we speak, repeating the mistake it made in the PC realm, only this time in the digital content arena. Don't get me wrong, I love their products (own 3 Macs and an iPod), but they just don't understand the dynamics at work here.

    Consider where they are right now with iPod/iTunes/ITMS:

    • Dominating market share
    • Fantastically innovative product, to the point that they virtually created a new market from nothing
    • Loved by their users
    • Highly integrated product, with a stubborn unwillingness to unbundle

    Now re-read the above, only now as a description of where they were in 1980/81 with respect to the Apple ][ and the PC industry they had recently created.

    Apple is still failing to understand the critical importance of owning the platform. In this case, whoever ends up controlling the DRM technology is going to control the digital content universe. And this will eventually include all movies, TV, books, and anything that can be digitized. By locking out every other vendor from using Fairplay, they are virtually guaranteeing their irrelevance in the DRM endgame.

    For Apple to have a chance here, they need to:

    • Issue a temporary Fairplay license to any other content supplier that will use it. They have some advantage here, since the iPod is so popular.
    • Issue a temporary Fairplay license to any other mp3/AAC player manufacturer that will use it. Again they have some advantage, since ITMS/iTunes are so popular.

    Just this past week Apple snubbed Real, which will push the rest of the industry that much closer to Microsoft's WMA. MS, for their part, are crystal-clear on how to win a platform war. I predict that in three years Apple will have Superbowl ads encouraging us to break from the DRM shackles of Big Brother and return to their platform. Yeah, right.

    Just had to get that off my chest. I hate to see good companies make bad decisions.

    • by kylemonger ( 686302 ) on Tuesday April 27, 2004 @01:30AM (#8980649)
      But Apple doesn't want to win, at least not in the way you think. Apple wants to sell products to people who are willing to payh more for quality. There are enough of these people to make Apple a very profitable company. When they strayed from this and tried to compete with the likes of Dell they got crushed. If the DRM/media market starts looking like it will be controlled by "da cheapest iz de greatest" crowd, Apple should bow out and leave that wallow to the pigs know it best.
  • by CrazyTalk ( 662055 ) on Tuesday April 27, 2004 @08:25AM (#8982436)
    It's also the one year anniversary since I purchased a CD.
  • From the CNet article:
    But some rivals said they expect Apple's dominance will be temporary.

    "Apple is probably still riding the wave of their initial launch," said Jason Reindorp, a group manager in Microsoft's Windows digital media unit. "They have spent an inordinate amount of money to generate awareness around their closed ecosystem. (But) as people get more sophisticated in this area they are going to be getting more frustrated with a closed ecosystem. I think the market will kind of self-correct as things get more mainstream."


    (Let's ignore the fact, for the moment, that CNet decided to end the article with such a poorly written presentation of Apple's "rivals" that think the "dominance [of iTunes] will be temporary" by quoting a Microsoft rep and... hrm... just that one MS rep.)

    Is that some sort of joke? A Microsoft employee says that the folk at Apple, "have spent an inordinate amount of money to generate awareness around their closed ecosystem" and that "the market will kind of self-correct as things get more mainstream"?!!

    No, Mr. Reindorp, the market doesn't always self-correct. Let me refer you across campus to your OS development building see when it doesn't. You, of all companies, should know the advantages of spending inordinately more than anyone else is prepared to spend to effect dominance in a market. Lucky for you OS consumers haven't reached the level of "sophistication" when it comes to operating systems that you expect from them in the digital music arena.

    I'm heartened to see, at least for the time being, a market where Apple is comfortable betting the farm (the market Apple calls a "digital lifestyle" where the Mac is a "digital hub") and MS is not. I'm not sure I 100% believe what Cringely recently said [pbs.org], but this is one case where I hope Apple does ignore MS and keeps releasing a superior product with an inordinately high budget behind it.

    And this hope isn't just b/c I like Apple and use OS X daily at home, but also because I'm a stockholder. Apple's plan as you characterize it, as every MS employee should know, is often inordinately successful.
  • by amichalo ( 132545 ) on Tuesday April 27, 2004 @09:28AM (#8983012)
    I am shocked and amazed at how rapidly Walmart has dominated the WMA market. I am equally shocked that iTMS has been surpassed by the WMA alternatives. March 2004 numbers:
    iTMS - 4.9MM (Fairplay)
    Walmart - 2.7MM (WMA)
    Napster 2.0 - 1.9MM (WMA)
    Musicmatch - 1.5MM (WMA)
    BuyMusic - 0.5MM (WMA)

    That's Fairplay - 4.9MM to WMA 6.6MM (1.7MM more WMA than Fairplay songs - or 34% more than iTMS!)

    As an Apple fan (DOS 2001) I want to deny this but the numbers speak for themselves.

    It is the truth that whichever format sells more songs will become the standard because to switch to the other format will require not only the re-purchase/re-rip of the song library but the re-purchase of the player as well.

    Unless Apple is fibbing on the small margin they make (not likely as they have stated it openly and SEC may have a fvew questions if they have been) then it seems like Apple needs to support WMA with the iPod as well as Fairplay for DRM so that the iPod can remain King, Queen, and Jack of the hill.
    • You are misinterpreting the numbers. These are subscriber/member numbers and have nothing to do with downloaded tracks, albums or revenue generated.

      For all we know WalMart as 2.7 million members, but only several thousand have purchased music.

      For example. we know that iTMS has sold at least 50 million tracks, but has less than 5 million accounts.

      The latest numbers I'd seen released showed iTMS with something like 70% of all legal music downloads, that means that iTMS is selling more than all the other se

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