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