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B eyo n d B ro a d c a s t , M e d i a F u t u re s C o n f e re n c e 2 0 0 9
F r i d ay 3 Ju l y 2 0 0 9 , B l o o m b e r g A u d i t o r i u m , L o n d o n




viable futures
th e i Tu n e s ( media) ecolog y

Alexander Grünsteidl                 a g @ d i g i t a lwe l l b e i n g l a b s . c o m
30 years ago the Sony Walkman was being sold for the
      first time.

      it started a revolution in portable consumer electronics
      profoundly changing the way we listen to music.


...   1979 1980          1990            2000            2009    ...
2 years ago the iPhone was being sold for the first time

      exactly a year ago, 10 July 2008, the Appstore opened



...   1979 1980          1990            2000      2007 2008 2009   ...
ecology
     http://images3.realestate.co.nz/edi/genilnk001/photos/L11008-1.jpg
culture
 habit
 value
SUPERLATIVES
Both Apple and the Media have been communicating
           about Apple in superlatives ...
iTunes Ecology; a Media Futures case study
1,000 songs
   in your pocket
iTunes Ecology; a Media Futures case study
600 million
copies of iTunes jukebox installed
iTunes Ecology; a Media Futures case study
$ 0.99
 Cost per song
iTunes Ecology; a Media Futures case study
6 Billion
 Songs downloaded
 since April 28 2003
iTunes Ecology; a Media Futures case study
21,170,000
 number of iPhones sold
        to date
iTunes Ecology; a Media Futures case study
1,000,000
 number of iPhones sold
 weekend 19th June 2009
iTunes Ecology; a Media Futures case study
1 Billion
Applications downloaded
What is ONE million
     iPhones?

one iPhone is 13mm
         =
 13 km high stack
twenty million iPhones?
           =
       260 km
           =
  London - Machester
What is ONE Billion ?

  one Pound coin
   is 3 mm thick
         =
      3000 km
         =
  beyond Moscow
YOU
              Who owns an iPod ?

             Who owns an iPhone ?

    Who has paid more than £ 5 for an App ?

Who has recommended an iPhone app to a friend ?

   Have you read a bookon a portable device ?
Me
 How’s the market place, especially retail changing ?

How does this affect public places like the High Street ?

  Changing business models in demand - supply and
     value of discovery and recommendation ?
retail
2003
A typical design brief
please design us an iPod !
iPod UI everywhere
iPod UI everywhere
Are you sure ...?
A typical design brief

     2008
please design us an iPhone !
as designers we need to
 increasingly understand
     business models
and how these are part of
     a culture of use.
what IS iTunes ?
seamlessly integrated

ecology
seamlessly integrated ?




     2000 iRiver iMP-100
CD ripping application
application   compression technology
              file and play list management
              internet browser
              network sharing
              Genius recommendation engine
              device and iPod synchronization
              cd burning
              internet radio stations
CD ripping application
application    compression technology
               file and play list management
               internet browser
               network sharing
               Genius recommendation engine
               device and iPod synchronization
               cd burning
               internet radio stations

online store   DRM copyright management
               seamless integrated webstore
               per song sales model, one click purchase
               podcasts
               movie rentals
CD ripping application
application    compression technology
               file and play list management
Jan 2001       internet browser
               network sharing
               Genius recommendation engine
               device and iPod synchronization
               cd burning
               internet radio stations

online store   DRM copyright management
               seamless integrated webstore
2003
               per song sales model, one click purchase
               podcasts
               movie rentals
iPod family    player hardware,
               massive storage
Oct 2001
               simple integrated UI design
               retrieval interface
               sexy product design
               exquisite materials
looking back
$6125
                                                PC retail prices

 3000     $3045    1981 IBM personal computer


               $2495 macintosh
 2000




1000



 100


        1980                  1990                2000      2010   ...

         professional                           consumer
PC retail prices

 3000




 2000




                               $1199 iMac
1000



 100


        1980            1990   1997   2000   2010   ...

         professional          consumer
PC retail prices

 3000




 2000




1000

                                             $600 iPhone
 100


        1980            1990   1997   2000   2007   2010   ...

         professional          consumer      $199 contract
centralized
             utility computer

  Personal
Computing                  Digital Hub

             distributed
             computing
iMovie

Digital Hub
iMovie
            2000
                   Digital Hub




The Napster surprise
iMovie




iTunes
iMovie




iTunes




iPhoto
consumers are increasingly
  encouraged to become
     media creators
culture
WHAT
media has changed from creating content
WHAT
media has changed from creating content




HOW   to enabling consumption
<social objects>
<social objects>
<social objects>
<social objects>
identity + expression



social object
music + friends




sharing music
        http://misspinkslip.files.wordpress.com/2009/06/mixtape.jpg
building on existing behaviours
-> shared playlists   -> gifting
music + running




introducing new technology behaviours
   -> social networking -> retail
iPod + customization
   iPods accessoires
        Loudspeakers




    lifestyle
lifestyle
    http://www.lovegroverepucci.com/collection-concerto-table.htm
how many
features does
 the iPhone
    have ?
iTunes Ecology; a Media Futures case study
enabling
lifestyles
habit
iTunes
a central media experience

   seamless integration
iTunes
a central media experience




      device manager
iTunes
a central media experience




   coverflow interface
iTunes
a central media experience




internet browser & online store
iTunes
a central media experience




   recommendation genius
iTunes
a central media experience




   Apple Stores | iPod Bar
iTunes
a central media experience




 iTV & home entertainment
iTunes Ecology; a Media Futures case study
75%
 of all new cars
come with iPod
  connectivity
iPod Shuffle

1000 songs

1 button




simplicity through reduction
value
iTunes Ecology; a Media Futures case study
59,132
number of apps in appstore to date
...value?
B2B
http://www.mobclix.com/
apps in the appstore
apps in the appstore

FREE 23%

           77% PAID
apps downloaded



      5-10%
apps downloaded

FREE

         5-10% PAID
units sold

             Blockbuster effect




                          rank
units sold

             Blockbuster effect




                          rank
App usage patterns




      http://www.appvee.com/blog/2009/04/the-most-comprehensive-iphone-app-sales-figures/
mental models
iTunes Ecology; a Media Futures case study
what is more valuable?
 access vs ownership

   http://arstechnica.com/microsoft/
 news/2009/05/microsofts-next-apple-
  price-attack-zune-pass-vs-itunes.ars
iTunes Ecology; a Media Futures case study
iTunes Ecology; a Media Futures case study
customer perception of value

   OWN                    USE
 how much can one
 own and consume ?
                     PAY per USE   Subscribe


      ?                     ?
                     rental
user behaviour will change

 OWN            USE
   Bandwidth
   AccessibilitySubscribe
         PAY per USE


      Trust
         rental


  Customization
user behaviour will change

 OWN                   USE
or is there an underlying
              PAY per USE
cultural believe around
                    Subscribe
              rental
      ownership ?
NIN Nine Inch Nails
NIN Nine Inch Nails
        music + game

  TapTap
         TapTap
         revenge
         downloaded by a third of
              iPhone users


 Free                               $ 5.00
NIN Nine Inch Nails
               music + socialnetwork

•   Blog updates and event news
•   stream music
•   download photos
•   upload their own remixes
•   multiple conversations with
    strangers at gigs,
• locate other NIN fans in their
    vicinity


                                   Free
closed
vertical integration
                       ecology
ecology


vertical integration
                       regulated
closed


                       media platform
next time you:

 
 
 
 commission a project

 
 
 
 seek funding

 
 
 
 build an application or service


ask yourself:
         1. How does it relate to other elements in the
            ecology ?

         2. Does a combination of existing elements
            enable new consumption behaviours ?

         3. Can it become a new platform for an
            innovative culture of use ?
AppWall


http://www.youtube.com/watch?v=ThTi4nPecNs
digital wellbeing labs




                                                     ag @ digitalwellbeinglabs . com



We tune technology to create harmony in your life.   www . digitalwellbeinglabs . com
Sources:
de-coding-iphone-3g-advertising-from-o2-in-the-observer <http://www.gomonews.com/de-coding-iphone-3g-advertising-from-o2-in-the-observer/>

50_of_2007_model_cars_sport_ipod_integration <http://www.metrics2.com/blog/2006/12/20/50_of_2007_model_cars_sport_ipod_integration.html>

iPhone-appstore-secrets-pinch-media <http://www.slideshare.net/pinchmedia/iphone-appstore-secrets-pinch-media>
longterm-usage-of-iphone-apps-is-only-one-percent-of-total-downloads <http://www.pocketpicks.co.uk/latest/index.php/2009/05/05/longterm-usage-of-
iphone-apps-is-only-one-percent-of-total-downloads/>

Bands Bypass iTunes With iPhone Apps <http://apple.slashdot.org/article.pl?sid=09/02/20/2059233>

Bands-bypass-itunes-by-streaming-music-through-iphone-apps <http://arstechnica.com/apple/news/2009/02/bands-bypass-itunes-by-streaming-
music-through-iphone-apps.ars>

Apple’s Cool Matrix-Style App Wall <http://www.techcrunch.com/2009/06/08/apples-cool-matrix-style-app-wall/>

148Apps.biz | Apple iTunes App Store Metrics, Statistics and Numbers for iPhone Apps<http://148apps.biz/app-store-metrics/>

CES: Analyzing the iTunes usage statistics - 1/10/2007 12:04:00 PM - EDN<http://www.edn.com/article/CA6406501.html>

BBC - Newsbeat - Technology - Apple takes on 'old school' Nintendo<http://news.bbc.co.uk/newsbeat/hi/technology/newsid_7724000/7724366.stm>

Timeline of Apple products - Wikipedia, the free encyclopedia<http://en.wikipedia.org/wiki/Timeline_of_Apple_products>

What's the future of iTunes? - By Ivan Askwith - Slate Magazine <http://www.slate.com/id/2176117>

Could the future of iTunes be digital software downloads? | Webware - CNET<http://news.cnet.com/8301-17939_109-9852097-2.html>

Apple iPhone 3.0 Update: the Good, the Bad and the Still Missing | Analysis | iPodObserver<http://www.ipodobserver.com/ipo/article/
apple_iphone_3.0_update_the_good_the_bad_and_the_still_missing/>
About Those iPhone App Store Revenue Numbers<http://www.techcrunch.com/2009/05/14/about-those-iphone-app-store-numbers/>

App Store Rank-to-Sales Revealed<http://www.joelcomm.com/app_store_ranktosales_revealed.html>

sales data GeoLogTag news<http://www.galarina.eu/GeoLogTag/News/Entries/
2009/2/5_Sales_figures_from_the_dark_dungeons_of_the_App_Store.html>

Forrester Research: Epic Terror of iTunes and Apple TV<http://www.roughlydrafted.com/RD/RDM.Tech.Q2.07/51A2CED5-
D5C7-4053-9D3E-2A50A09F55DA.html>

Longterm usage of iPhone apps is only one percent of total downloads | // Pocket Picks //<http://www.pocketpicks.co.uk/latest/index.php/2009/05/05/
longterm-usage-of-iphone-apps-is-only-one-percent-of-total-downloads/>

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iTunes Ecology; a Media Futures case study