The iTunes Store is an intuitive and user friendly solution for mobile phone users. It is characterized by its ease of installation, which is convenient even for non techies. The proposed offer by the iTunes Store is a large and diverse catalog of more than 8 million tracks in early 2009 and more than 8.5 billion downloads on 9th September 2009, as well as over 100,000 podcasts, movies, TV shows, books audio, games and applications.
iTunes benefits the largest number of marketing strategies. Titles are available individually and as albums. The great success of the iTunes Store is based on its price (almost) of €0.99. Payment by credit card or 'click & buy' is also a simplified point for the users.
Since the launch of the download platform, music files are protected against illegal copying with DRM. Following an open letter from Steve Jobs calling for an end to DRM on the Apple store, and an announcement at Mac World in January 2009, DRM has been removed since April 2009. The audio files are of good quality, as available in AAC format at 256 kbit /s and can be downloaded in seconds.
Complementarity with the inevitable iPod:
The commercial success of the iPod combined with the complementary player iTunes has made the iTunes Store a success by becoming the leading popular paid download solution.
What are the key benefits for the consumers buying music on the iTunes Store? How is iTunes shaping the way people consume and listen to music?
Buying music on the iTunes Music Store offers more freedom to the user, so it creates a new form of consumption compared to CD, more personalized, faster, more intuitive. Tools like Genius are also developed to identify the best user needs.
Tags: iTunes Store, New trend of consumption of music, Online music files download, Marketing strategy of the iTunes Music Store
[...] - Houses and independent disks in direct sales (Universal Music . - Artists distribute their own music (Radiohead, Manu Chao). -Platforms are targeted sites that sell music on particular segments (genre, geographical area, independent label, artist . - Mobile operators that offer downloads on their site in addition to downloading via mobile (SFR, Orange). - Suppliers to white label sites enjoying a large audience or a brand with high added value (OD2 with MSN and MTV, VirginMega with Virgin Radio, AOL and MCM). [...]
[...] Where is the iTunes Store Positioned in the value chain of the music industry? The Apple booth is nearly ubiquitous in the value chain of music. It works like a shop selling music online (music store) and for transferring onto Apple hardware (iPod, iPod Touch, etc . ) • Buy music providers with rights to sell online • Last AAC servers • Encoding for human listening = Fairplay (DRM) until last April • ITunes jukebox software integrates access to iTunes Music Store • Payment subcontracted • Transfer and listen / put on hardware (iTunes and iPod) Please note that this image cannot be translated to English Apply the framework of Porter's "The 5 forces analysis" to this market How does Apple try to adjust content to customers' preferences and lifestyles and generate higher profits from downloads? [...]
[...] The only differentiated elements are marketing strategies. The latest consumer survey by "MusicWatch" The NPD Group , lists the top five music retailers in the U.S. for the first half of 2008 (January to June, based on the purchase of CDs and a-la-carte digital music downloads) which are ranked as follows : 1. iTunes 2. Wal-Mart (Wal-Mart, Walmart.com, Wal-Mart Music Downloads) 3. Best Buy (Best Buy, Bestbuy.com, Best Buy Digital Music Store) 4. Amazon (Amazon.com, AmazonMP3.com) 5. Target (Target and Target.com) These main competitors meet the same need as the solution from Apple, and have a similar business model based on paid music. [...]
[...] Marketing study: the iTunes Music Store What do you think about the value proposition of the iTunes Store? Simplicity The iTunes Store is an intuitive solution for users, easy to use, easy installation, and intuitive interface even for non techies. One can speak of a very pleasant customer experience. An eclectic offer The offer by the iTunes Store is broad and diverse with a catalog of over 8 million tracks (early 2009) and over 8.5 billion downloads in 9 September 2009, more than 100,000 podcasts, movies, TV shows, books audio, games and applications . [...]
[...] Who are the main competitors of the iTunes store? Comparison of their business models with that of the iTunes store iTunes store is the market leader in the sale of online music with over 8.5 billion songs downloaded so far. This market does not allow a significant differentiation in terms of supply, because it is easily declinable from distributor to another. At the marketplace, competitors are just a click away on the Internet, and this cannot be a source of differentiation either. [...]
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