Case study: iTunes for K-12

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Case study: iTunes for K-12

  1. 1. <ul>iTunes for K-12 Giorgio Sironi (Nest Group) </ul>
  2. 2. Description <ul><li>Service: K-12 category of a famous online podcasts platform </li></ul><ul><ul><li>Audio and video in periodically updated feeds
  3. 3. Crowdsourced podcasts creation
  4. 4. Distribution via freeware proprietary program </li></ul></ul><ul><li>Users: teacher and students
  5. 5. Main actors: content creators and Apple </li></ul>
  6. 6. Description <ul><li>Didactive objective </li></ul><ul><ul><li>Provide a categorization of content to help navigation
  7. 7. In order to add value to the iTunes platform </li></ul></ul><ul><li>Business model </li></ul>
  8. 8. Business model <ul><li>iTunes is free to download
  9. 9. Podcasts cannot be sold according to Terms of Service
  10. 10. Where is the money? </li></ul><ul><ul><li>Selling DRM-free music (low margin) </li><ul><li>Profits go to Apple and record labels </li></ul><li>Selling iOS devices </li><ul><li>Profits go to Apple </li></ul><li>Selling a service/product where podcasts are a complementary good </li><ul><li>Profits are retained </li></ul></ul></ul>
  11. 11. Homepage
  12. 12. Homepage <ul><li>Provides navigation </li></ul><ul><ul><li>Of categories
  13. 13. Of appropriate podcasts </li></ul></ul><ul><li>Other filters </li></ul><ul><ul><li>Popularity
  14. 14. Alphabetic </li></ul></ul>
  15. 15. Example of podcast
  16. 16. Example of podcast <ul><li>Description
  17. 17. List of episodes </li></ul><ul><ul><li>Number
  18. 18. Description
  19. 19. Date
  20. 20. Price, which must always be free </li></ul></ul><ul><li>Customer ratings
  21. 21. Related content </li></ul><ul><ul><li>From the same publisher </li></ul></ul>
  22. 22. No web fruition
  23. 23. No web fruition <ul><li>Proprietary, free of charge software </li></ul><ul><ul><li>No HTTP link to the podcasts </li></ul></ul><ul><li>Gives access to the iOS (iPod/iPhone/iPad) market
  24. 24. Platforms </li></ul><ul><ul><li>Windows 32/64 bit
  25. 25. Mac OS X </li></ul></ul>
  26. 26. Software
  27. 27. Software <ul><li>Features </li></ul><ul><ul><li>Library management
  28. 28. Music purchasing
  29. 29. Playlist
  30. 30. Device loading </li></ul></ul><ul><li>Only way to </li></ul><ul><ul><li>Access podcasts content
  31. 31. Load content on iOS devices </li></ul></ul>
  32. 32. Marketing
  33. 33. Marketing <ul><li>Downloading the software is an additional step and must provide value </li></ul><ul><ul><li>Single platform to access all multimedia content
  34. 34. Mandatory integration with iOS devices </li><ul><li>iTunes can load content on an iPod </li></ul><li>In-application purchase (of songs and movies) </li></ul></ul><ul><li>The only web-based component is the directory for discovering podcasts </li></ul><ul><ul><li>It is replicated inside the application
  35. 35. Continuously links to the software </li></ul></ul>
  36. 36. Strengths & weaknesses <ul><li>Network effects from the diffusion of iTunes
  37. 37. Integration with iOS devices
  38. 38. Content cannot be sold </li><ul><li>Not that the market for digital content allows for a good price margin </li></ul></ul>
  39. 39. Conclusions & take-aways <ul><li>The platform itself does not allow third parties to make a profit directly , unlike for iOS applications
  40. 40. Categorization of content is necessary and can be performed by humans
  41. 41. Selling a complementary good (devices) is a profitable strategy if you commoditize the primary one (iTunes) </li></ul><ul><ul><li>Paid services or products that exploit free podcasts </li></ul></ul>

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