presentation - Viable Futures: Apple iTunes media case study The Media Futures Conference 2009 Friday 3 July at the Bloomberg Auditorium, London

1. 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

2. 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 ...

3. 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 ...

4. ecology
http://images3.realestate.co.nz/edi/genilnk001/photos/L11008-1.jpg

5. culture
habit
value

6. SUPERLATIVES
Both Apple and the Media have been communicating
about Apple in superlatives ...

8. 1,000 songs
in your pocket

10. 600 million
copies of iTunes jukebox installed

12. $ 0.99
Cost per song

14. 6 Billion
Songs downloaded
since April 28 2003

16. 21,170,000
number of iPhones sold
to date

18. 1,000,000
number of iPhones sold
weekend 19th June 2009

20. 1 Billion
Applications downloaded

21. What is ONE million
iPhones?
one iPhone is 13mm
=
13 km high stack

22. twenty million iPhones?
=
260 km
=
London - Machester

23. What is ONE Billion ?
one Pound coin
is 3 mm thick
=
3000 km
=
beyond Moscow

24. 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 ?

25. 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 ?

26. retail

27. 2003
A typical design brief

28. please design us an iPod !

29. iPod UI everywhere

30. iPod UI everywhere

31. Are you sure ...?

32. A typical design brief
2008

33. please design us an iPhone !

34. as designers we need to
increasingly understand
business models
and how these are part of
a culture of use.

35. what IS iTunes ?

36. seamlessly integrated
ecology

37. seamlessly integrated ?
2000 iRiver iMP-100

38. 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

39. 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

40. 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

41. looking back

42. $6125
PC retail prices
3000 $3045 1981 IBM personal computer
$2495 macintosh
2000
1000
100
1980 1990 2000 2010 ...
professional consumer

43. PC retail prices
3000
2000
$1199 iMac
1000
100
1980 1990 1997 2000 2010 ...
professional consumer

44. PC retail prices
3000
2000
1000
$600 iPhone
100
1980 1990 1997 2000 2007 2010 ...
professional consumer $199 contract

45. centralized
utility computer
Personal
Computing Digital Hub
distributed
computing

46. iMovie
Digital Hub

47. iMovie
2000
Digital Hub
The Napster surprise

48. iMovie
iTunes

49. iMovie
iTunes
iPhoto

50. consumers are increasingly
encouraged to become
media creators

51. culture

52. WHAT
media has changed from creating content

53. WHAT
media has changed from creating content
HOW to enabling consumption

54. <social objects>

55. <social objects>

56. <social objects>

57. <social objects>

58. identity + expression
social object

59. music + friends
sharing music
http://misspinkslip.files.wordpress.com/2009/06/mixtape.jpg

60. building on existing behaviours
-> shared playlists -> gifting

61. music + running
introducing new technology behaviours
-> social networking -> retail

62. iPod + customization
iPods accessoires
Loudspeakers
lifestyle

63. lifestyle
http://www.lovegroverepucci.com/collection-concerto-table.htm

64. how many
features does
the iPhone
have ?

66. enabling
lifestyles

67. habit

68. iTunes
a central media experience
seamless integration

69. iTunes
a central media experience
device manager

70. iTunes
a central media experience
coverflow interface

71. iTunes
a central media experience
internet browser & online store

72. iTunes
a central media experience
recommendation genius

73. iTunes
a central media experience
Apple Stores | iPod Bar

74. iTunes
a central media experience
iTV & home entertainment

76. 75%
of all new cars
come with iPod
connectivity

77. iPod Shuffle
1000 songs
1 button
simplicity through reduction

78. value

80. 59,132
number of apps in appstore to date

81. ...value?

82. B2B

83. http://www.mobclix.com/

84. apps in the appstore

85. apps in the appstore
FREE 23%
77% PAID

86. apps downloaded
5-10%

87. apps downloaded
FREE
5-10% PAID

88. units sold
Blockbuster effect
rank

89. units sold
Blockbuster effect
rank

90. App usage patterns
http://www.appvee.com/blog/2009/04/the-most-comprehensive-iphone-app-sales-figures/

91. mental models

93. what is more valuable?
access vs ownership
http://arstechnica.com/microsoft/
news/2009/05/microsofts-next-apple-
price-attack-zune-pass-vs-itunes.ars

96. customer perception of value
OWN USE
how much can one
own and consume ?
PAY per USE Subscribe
? ?
rental

97. user behaviour will change
OWN USE
Bandwidth
AccessibilitySubscribe
PAY per USE
Trust
rental
Customization

98. user behaviour will change
OWN USE
or is there an underlying
PAY per USE
cultural believe around
Subscribe
rental
ownership ?

99. NIN Nine Inch Nails

100. NIN Nine Inch Nails
music + game
TapTap
TapTap
revenge
downloaded by a third of
iPhone users
Free $ 5.00

101. 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

102. closed
vertical integration
ecology

103. ecology
vertical integration
regulated
closed
media platform

104. 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 ?

105. AppWall
http://www.youtube.com/watch?v=ThTi4nPecNs

106. digital wellbeing labs
ag @ digitalwellbeinglabs . com
We tune technology to create harmony in your life. www . digitalwellbeinglabs . com

107. 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/>