group_project1businessmodels
- 1. Apple Inc: iTunes Team Global Tech Gals January 15, 2012
- 2. Apple Inc: iTunes Team Global Tech Gals January 15, 2012
- 4. CLICK Analysis Apple Inc was originally established in April 1, 1976 by founders Steve Jobs, Steve Wozniak, and Ronald Wayne. The men met while working for the gaming brand Atari, and formed an early partnership that helped launch Apple into the leading brand we know today.
- 5. CLICK Continued Over the course of the following decades the brand evolved to become what we know as the developers of the Macintosh product line. Though the company is credited with many technological developments and applications, here we will focus on Apple’s use of their popular music application, iTunes.
- 6. CLICK Continued Over the course of the following decades the brand evolved to become what we know as the developers of the Macintosh product line. Though the company is credited with many technological developments and applications, here we will focus on Apple’s use of their popular music application, iTunes.
- 8. iTunes is a testament to this design principle.
- 9. iTunes first intended marketing efforts began at launch in 2001, when the brand targeted consumers interested in purchasing music in an online environment that supported clean and legal downloads for a price. Apple developers wished to compliment the recent release of the iPod and the iTunes platform posed a perfect pairing of technological products. Music labels were inalterably impacted by the new iTunes generation, and a whole new way of discovering and purchasing music quickly and easily was born.
- 11. SWOT Analysis
- 13. Top 3 Problems Illegal downloading of music was causing the Music industry to loss profit and there was a real threat of the music industry becoming extinct Consumers wanted digital music for free but legally and relatively cheap Consumers wanted to be able to pick what they wanted to listen to and be able to do so in an easy to use fashion
- 14. Top 3 Solutions Offering online sales of albums and singles Standardized pricing for singles at 99 cents – this meant that you could buy a single for 99 cents no matter who the artists was Selling singles instead of albums - this changed the way that the average customer thought of a music unit.
- 16. Industry Impact The iTunes Music store was introduced in April 2003 with 200,000 songs all for sale at 99 cents In the first week more than 1 million songs were purchased and downloaded This was the first time consumers could ‘cherry pick’ their songs rather than purchasing entire albums or singles the record labels selected
- 17. Industry Impact iTunes along with the iPod changed the way people consume music It allowed people to buy experiences that now includes connecting with artists via iTunes ping, Facebook and Twitter Artists have more options on self distribution and licensing
- 18. Alternative Business Models Subscription service model would be additional revenue stream for Apple It would allow Apple to anticipate monthly revenue from members whether they download music that month or not Having a subscription service model would allow Apple to control a member’s music library; subscription ends and the library is no longer accessible giving incentive to continue service
- 19. References: Image Resource List: • iTunes logo for title page http://www.finestdaily.com/news/free-itunes-movie-rentals-from-orange-and-apple.html/attachment/itunes-logo-2 • image of first iPod http://www.apple.com/pr/products/ipodhistory/ • image of iPod 2003 http://www.apple.com/pr/products/ipodhistory/ • image of 2003 iTunes store http://news.cnet.com/html/ne/Special/Pops/itunes_pop.html • image of U2 FB page https://www.facebook.com/u2?sk=wall • image of Jared from Kings of Leon https://twitter.com/#!/youngfollowill • image of iTunes ping iTunes music player • image of subscription service http://www.macworld.com/article/154757/2010/10/music_subscription_compared.html • image of Foo Fighters on iTunes mobile http://www.apple.com/itunes/what-is/ • image of Steve Jobs with download screen http://articles.businessinsider.com/2011-05-31/tech/30032065_1_ios-apple-s-worldwide-developer-s-conference-mobileme • image of Steve Jobs announcing Ping http://www.physorg.com/news/2010-11-apple-itunes-tuesday.html • early Steve Jobs http://www.cultofmac.com/125063/steve-jobs-finally-reveals-where-the-name-apple-came-from/ • iPod generation graphic http://www.designerwhey.com/blog/phase-ten-the-ipod-trio-part-three/ • iPod generation dog http://captionsplash.mylifetime.com/user/scottiebaby • iTunes competitor – Google http://twitteling.com/2011/03/itunes-competitors-from-google-is-ready-to-be-presented/ • iTunes competitor – Rhapsody http://chattahbox.com/technology/2008/06/30/rhapsody-embraces-the-ipod-challenges-itunes/ • iTunes competitor – Spotify http://www.digitaltrends.com/computing/spotify-music-download-service-launches-in-europe-with-ipod-support-free-playlist-syncing/ • iTunes gift card for revenue stream http://www.kaboodle.com/reviews/itunes-gift-card-collection • Music industry labels impacted from iTunes http://thenextweb.com/media/2011/01/03/the-music-industry-and-the-web-time-to-kiss-and-make-up/ • Matt Damon with iPod (service meets customers needs when jogging) http://obamapacman.com/2009/08/matt-damon-apple-mac-laptop-ipod/ • Girl on train with iPod (service meets customers needs when commuting) http://wigblog.blogspot.com/2005/07/end-of-ipod-era.html
- 20. Resources for Industry Impact & Alternative Business Models: • Breen, C. (2010, October 12) MacWorld “Four Music Subscription Services Compared”, http://www.macworld.com/article/154757/2010/10/ music_subscription_compared.html • Byrne, D. (2007, December 18) Wired Magazine “David Byrne’s Survival Strategies for Emerging Artists – and Megastars”, http://www.wired.com/entertainment/ music/magazine/16-01/ff_byrne?currentPage=all • Deleon, N. (2011, March 23) Tech Crunch “London School of Economics: No, Piracy Has Not Killed the Music Industry”, http://techcrunch.com/2011/03/23/ london-school-of-economics-no-piracy-has-not-killed-the-music-industry-but-the-industry-has-certainly-changed/ • O’Hear, S. (2007, October 11) Last 100 “Music Industry: Five Alternative Business Models”, http://www.last100.com/2007/10/11/music-industry-five- alternative-business-models/ • Spotts, G. (2007, March 25) Fast Company “Indie Bands Reach New Sales Heights Through iTunes”, http://www.fastcompany.com/blog/greg-spotts/digital- entertainment-column/indie-bands-reach-new-sales-heights-through-itunes • Unknown (n.d.) Apple “Press Info: iPod + iTunes Timeline” http://www.apple.com/pr/products/ipodhistory/ Resources for CLICK Analysis ● 1. Ehrenfried, M. (2011, 12 09). markusehrenfried.de. Retrieved from http://www.markusehrenfried.de/ mac/applehistory.html 2. Livingston, J. (n.d.). Founders at work. Retrieved from http://www.foundersatwork.com/ steve-wozniak.html 3. Apple Inc. (200). Apple inc. (2 ed., Vol. 11, p. 2).