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 />
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 />
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 />
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 />
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 />Amazon.com<br />eBay<br />6<br />
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 />
Listen.com<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 />
iTunes vs. Listen.com<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 />
iTunes vs. Listen.com (cont.)<br />Offers HD motion pictures<br />Access offline<br />More uses than listen.com<br />CD burner, music and video player<br />iTunes where ever you go! <br />iPod, iPad, etc… <br />10<br />
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 />
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 .
iTunes get money from selling songs and advertisements spots.
iTunes doesn’t only sell songs, but also videos.</li></ul>12<br />
Cont.<br /> It is safe to download from iTunes.<br />People who have iPhone and iPod touch have the chance of downloading applications.<br />iTunes.com is considered a fulfilling website for music, videos, TV shows and games lovers.<br />13<br />
Thank You for Listening<br />Questions?<br />14<br />