iTunes for K-12 provides a categorization of audio and video podcasts to help teachers and students navigate educational content. While podcasts on iTunes are free and cannot be sold, Apple profits by selling iOS devices and music. The proprietary iTunes software is required to access podcasts and load content onto iOS devices, creating network effects and linking users to Apple's platform.

1. iTunes for K-12
Giorgio Sironi (Nest Group)

2. Description
• Service: K-12 category of a famous
online podcasts platform
– Audio and video in periodically updated
feeds
– Crowdsourced podcasts creation
– Distribution via freeware proprietary
program
• Users: teacher and students
• Main actors: content creators and Apple

3. Description
• Didactive objective
– Provide a categorization of content to
help navigation
– In order to add value to the iTunes
platform
• Business model

4. Business model
• iTunes is free to download
• Podcasts cannot be sold according to
Terms of Service
• Where is the money?
– Selling DRM-free music (low margin)
• Profits go to Apple and record labels
– Selling iOS devices
• Profits go to Apple
– Selling a service/product where podcasts are
a complementary good
• Profits are retained

5. Browsing the website:
homepage

6. Browsing the website:
homepage
• Provides navigation
– Of categories
– Of appropriate podcasts
• Other filters
– Popularity
– Alphabetic

7. Browsing the website:
example of podcast

8. Browsing the website:
example of podcast
• Description
• List of episodes
– Number
– Description
– Date
– Price, which must always be free
• Customer ratings
• Related content
– From the same publisher

9. Browsing the website: no
web fruition

10. Browsing the website: no
web fruition
• Proprietary, free of charge software
– No HTTP link to the podcasts
• Gives access to the iOS
(iPod/iPhone/iPad) market
• Platforms
– Windows 32/64 bit
– Mac OS X

11. Browsing the website:
software

12. Browsing the website:
software
• Features
– Library management
– Music purchasing
– Playlist
– Device loading
• Only way to
– Access podcasts content
– Load content on iOS devices

13. Browsing the website:
marketing

14. Browsing the website:
marketing
• Downloading the software is an additional
step and must provide value
– Single platform to access all multimedia content
– Mandatory integration with iOS devices
• iTunes can load content on an iPod
– In-application purchase (of songs and movies)
• The only web-based component is the
directory for discovering podcasts
– It is replicated inside the application
– Continuously links to the software

15. Strengths & weaknesses
• Network effects from the diffusion of
iTunes
• Integration with iOS devices
• Content cannot be sold
– Not that the market for digital content
allows for a good price margin

16. Conclusions & take-aways
• The platform itself does not allow third parties to
make a profit directly, unlike for iOS applications
• Categorization of content is necessary and can be
performed by humans
• Selling a complementary good (devices) is a
profitable strategy if you commoditize the primary
one (iTunes)
– Paid services or products that exploit free podcasts