1. Just as it revolutionized the consumer market for desktop
computers in the 1980’s, Apple Computer Inc. is again
transforming another burgeoning business. Apple’s entrant in
the digital-music business, the iTunes Music Store, was
launched in 2003. In seeking sustained success in the
competition among online music services, apple faces several
obstacles; among them are illegal file-sharing services, many
new legitimate competitors, technological challenges, and a
reluctant music industry.
2. More about iTunes Page (46)
Q1. Other than technology, which macro environmental forces
are 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 over
their now illegal counterparts? Why or why not?
Answer: The prevailing of LDMS over illegal counterparts mostly
depends 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).
3. 5. Interest depends and Social reasons.
Q3. Does legal digital-music downloading coincide with or run
counter to major demographics, social, and cultural trends in
the U.S?
Answer: Yes, they coincide with demographics, social and cultural
trends 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.
