Just as it revolutionized the consumer market for desktopcomputers in the 1980’s, Apple Computer Inc. is againtransforming another burgeoning business. Apple’s entrant inthe digital-music business, the iTunes Music Store, waslaunched in 2003. In seeking sustained success in thecompetition among online music services, apple faces severalobstacles; among them are illegal file-sharing services, manynew legitimate competitors, technological challenges, and areluctant music industry.
More about iTunes Page (46)Q1. Other than technology, which macro environmental forcesare particularly important to Apple’s iTunes?Answer: Other than technology, the following factors are important: 1. Political: The online music downloading industry has become complex and controversial in the past decade. DRM (Digital Rights Management) and DRM hacking are the issues that were effecting companies like Apple. So the Napster, which was allowing to download music illegally was shutdown in 2001 and DRM stopped issuing licenses creating certain unusual and invalid reasons, as even after closure of Napster, there were many imitators and they sprung, So Apple has to agree to certain conditions and were successful in its agreements with entertainment and media organizations in order to enhance market share of iTunes. 2. Economical: The iTunes can enjoy market success in European, American and rich countries and developed countries because of the positive economic growth trends, spending levels, import/export ration. It also depends on the spending and living standards of people. ITunes normally target the medium and upper class. 3. Social: The demographic trends, life styles, leisure activities and earning capacity of people are some social factors which affected the sales of iTunes, because the social force/factors influence the behavior and life style of people.Q2. Do you think legal digital-music services will prevail overtheir now illegal counterparts? Why or why not?Answer: The prevailing of LDMS over illegal counterparts mostlydepends on the location which counts: 1. Living standards. 2. Political & Legal Reasons (includes Black marketing). 3. Economical Reasons. 4. Cultural Reasons (Like in Pakistan, people like to listen to Urdu, Pashto songs).
5. Interest depends and Social reasons.Q3. Does legal digital-music downloading coincide with or runcounter to major demographics, social, and cultural trends inthe U.S?Answer: Yes, they coincide with demographics, social and culturaltrends of U.S by: Making it available online & selling it for low price, also giving many abilities like to download it or listen online. In U.S, people always hear music, so ITunes had an agreement with five (5) of the major music companies in order to assist people and make available all the latest music. Also, they gave deals of albums for low prices which could be downloaded.