I have not had the chance to read through the entire conversation here on iPod but I think one thing that is relevant is that iTunes only gets a 3% gross margin in each song downloaded. That is for the $.99 song, Apple gets $.03. That is not a business model that anyone else is going to adopt or even be able to make a business case for, unless, of course, they have a proprietary iPod like device on the back end to make sales to.
Take all the dispare MP3 player companies, they would each need to form a coalition and jointly invest their money into a competing service so as to provide an equal store front for the MP3 format. Could be done, but not very likely to be done.
This said, I don't know what the economics of say Rhapsody are but I know they don't offer the same product as iTunes.
Myself, I'll be downloading more iTunes stuff tonight and I don't even own an iPod. However, in the future, I may acquire an iPod for in car listening. There is even a service now where one can download the daily Rush Limbaugh show on to their computer automatically each day and from there onto your iPod. However, I think Rush enables you to download to MP3 as well as your option.
In the end, sounds to me, without reading through the full arguments hear yet, that Apple is once again playing a lucrative Chimpanzee position, except that they are now better at it, understand the game better, and this time are really the first movers with any competence and seriousness.
Tinker |
