Itunes case study


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Itunes case study

  1. 1. itunes case study<br />Maya Samaan<br />Nadia El-Samsam<br />RozaitYounis<br />Ahmed Zainal<br />
  2. 2. Who is Apple Inc.?<br />American multinational corporation<br />Established on the 1st of April, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne<br />Industry leader<br />2<br />
  3. 3. Who is iTunes?<br />Was introduced in 2003 and started off as iTunes Music Store and was later named iTunes Store<br />Music downloads for $0.99 per song<br />By the 19th of June, 2008, iTunes achieved over 5 billion downloads.<br />3<br />
  4. 4. What Are Business Models?<br />Basically, a business model is the strategy or method of doing business and sustaining the company in the market and generating revenue in the long run as well as pin-pointing where the company is positioned in the value chain.<br />4<br />
  5. 5. What does iTunes provide to the customer?<br />Over 11 million high-quality, DRM-free songs priced at just 69¢, 99¢, or $1.29 each as well as rent or buy blockbuster movies, get HD episodes of your favorite TV shows, shop for audio books, and download apps for your iPhone or iPod touch.<br />5<br />
  6. 6. Competing Business Models in the Music Market<br />iTunes’ success in the market led to other competing business models to adapt and use the web to their benefit, examples include:<br />Nokia<br /><br />eBay<br />6<br />
  7. 7. How did the iTunes business model help the Music Industry?<br />Created a legal, affordable, instantly gratifying purchasing system for fans.<br />Established new standards and practices.<br />People are paying for songs on the iTunes Music Store because they think it's a good way to support musicians.<br />Good deal for independent labels and musicians.<br />Helped recover the decline in Music CD sales since 2000.<br />Discourages Piracy.<br />7<br />
  8. 8.<br />Based on video and audio streaming platform<br />Limited number of downloads<br />Limited variety of genres <br />Based locally (only in U.S.)<br />Provide features on songs, concerts and albums<br />Allows viewers to post their comments<br />8<br />
  9. 9. iTunes vs.<br />Available worldwide<br />Provides services on an international level<br />Wide variety: 1000 movie rentals and 10 billion tracks by February 2010. <br />No features but descriptions<br />Viewers can rate and comment on content<br />Better organizational and navigational structure<br />3 click rule<br />9<br />
  10. 10. iTunes vs. (cont.)<br />Offers HD motion pictures<br />Access offline<br />More uses than<br />CD burner, music and video player<br />iTunes where ever you go! <br />iPod, iPad, etc… <br />10<br />
  11. 11. iTunes Success <br />Partners with the biggest names <br />Walt Disney, Paramount Pictures, Warner Bros. etc..<br />Right strategic planning and most effective marketing tactics <br />iTunes has a better integration plan <br />11<br />
  12. 12. Can the Model Survive in an Env. Where Illegal Music Downloading Runs Rampant?<br />Yes it can for many reasons: <br /><ul><li> It offers songs and music for only subscribers .
  13. 13. iTunes get money from selling songs and advertisements spots.
  14. 14. iTunes doesn’t only sell songs, but also videos.</li></ul>12<br />
  15. 15. Cont.<br /> It is safe to download from iTunes.<br />People who have iPhone and iPod touch have the chance of downloading applications.<br /> is considered a fulfilling website for music, videos, TV shows and games lovers.<br />13<br />
  16. 16. Thank You for Listening<br />Questions?<br />14<br />