2010-05-15

Why Apple invented iTunes Store

At first

iPod and iTunes came at the same time. At the time, music player had no network connections, but it had to be connected to a Personal Computer. The iPod needed its content, and instead of just implementing a storage media approach via file manager or similar application, a separate software was melted in.

The content

Before moving your audio files into an iPod, you had to have those files. It is possible to convert Compact Discs (CDs) to files. That was the one way. The other way was, and is, to download the audio files you want from peer to peer (P2P) networks. Music industry does not like the latter, because it is not generating revenue to them. iPod has a hard drive for audio and the capacity at that time was enormous. You just could put your entire CD collection into the device and it is not filled up. The next step is to go to the net and start downloading via P2P.

Music industry did not like it, and Apple had to innovate. They started iTunes store. The store is popular, but revenue and profit from it is tiny when compared to devices Apple sells. There is no really any business reason to maintain it. My claim is that it was the pressure from music industry, rather than the business strategy to support the iPod, that created the iTunes Store., Or, do you know a good reason why Nokia has Ovi Music Store?

What happens to books after iPad?

It seems that the same thing may happen to books after iPad. eBooks are already available, but book pricing in P2P networks is more tempting, right?

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