Itunes case study
- 1. itunes case studyMaya SamaanNadia El-SamsamRozaitYounisAhmed Zainal
- 2. Who is Apple Inc.?American multinational corporationEstablished on the 1st of April, 1976 by Steve Jobs, Steve Wozniak, and Ronald WayneIndustry leader2
- 3. Who is iTunes?Was introduced in 2003 and started off as iTunes Music Store and was later named iTunes StoreMusic downloads for $0.99 per songBy the 19th of June, 2008, iTunes achieved over 5 billion downloads.3
- 4. What Are Business Models?Basically, a business model is the strategy or method of doing business and sustaining the company in the market and generating revenue in the long run as well as pin-pointing where the company is positioned in the value chain.4
- 5. What does iTunes provide to the customer?Over 11 million high-quality, DRM-free songs priced at just 69¢, 99¢, or $1.29 each as well as rent or buy blockbuster movies, get HD episodes of your favorite TV shows, shop for audio books, and download apps for your iPhone or iPod touch.5
- 6. Competing Business Models in the Music MarketiTunes’ success in the market led to other competing business models to adapt and use the web to their benefit, examples include:NokiaAmazon.comeBay6
- 7. How did the iTunes business model help the Music Industry?Created a legal, affordable, instantly gratifying purchasing system for fans.Established new standards and practices.People are paying for songs on the iTunes Music Store because they think it's a good way to support musicians.Good deal for independent labels and musicians.Helped recover the decline in Music CD sales since 2000.Discourages Piracy.7
- 8. Listen.comBased on video and audio streaming platformLimited number of downloadsLimited variety of genres Based locally (only in U.S.)Provide features on songs, concerts and albumsAllows viewers to post their comments8
- 9. iTunes vs. Listen.comAvailable worldwideProvides services on an international levelWide variety: 1000 movie rentals and 10 billion tracks by February 2010. No features but descriptionsViewers can rate and comment on contentBetter organizational and navigational structure3 click rule9
- 10. iTunes vs. Listen.com (cont.)Offers HD motion picturesAccess offlineMore uses than listen.comCD burner, music and video playeriTunes where ever you go! iPod, iPad, etc… 10
- 11. iTunes Success Partners with the biggest names Walt Disney, Paramount Pictures, Warner Bros. etc..Right strategic planning and most effective marketing tactics iTunes has a better integration plan 11
- 12. Can the Model Survive in an Env. Where Illegal Music Downloading Runs Rampant?Yes it can for many reasons: It offers songs and music for only subscribers .
- 13. iTunes get money from selling songs and advertisements spots.
- 14. iTunes doesn’t only sell songs, but also videos.12
- 15. Cont. It is safe to download from iTunes.People who have iPhone and iPod touch have the chance of downloading applications.iTunes.com is considered a fulfilling website for music, videos, TV shows and games lovers.13
- 16. Thank You for ListeningQuestions?14