Downloadable Music Industry
Content Summary Overview
Downloadable music files are generally available in three formats: MP3 (MPEG-1 Audio Layer 3), AAC (Advanced Audio Coding), WMA (Windows Media Audio)
Pricing: Downloading a song costs $0.99, almost everywhere legal on the web. Cheaper for album, Wholesale music price is ~65c/song. Originally set artificially low in a bid to stimulate demand. Apple sells 84% of all songs sold online. Plus 75% of all music players
Subscription: Apple competitors trying subscription base music downloading
Switching Cost: In order to increase switching cost, providers ask for annual subscription. In addition, users require installing music engines. The music engine: 5 MB, 11 MB and 32 MB for Yahoo!, Napster, and iTunes, respectively.
Apple, One Year after iPOD: Apple’s revenue was $2 billion at end of 2003. The company’s net income grew to $63 million, compared with a net loss of $8 million last year. iPod and iTunes represent roughly 9 percent of revenue, they are expected to eventually account for more than 50 percent of Apple’s revenue.
File Category: Advertising
File Added: Saturday, April 24th, 2010
File Source: people.ischool.berkeley.edu/~hal/
File Size: 86.5 KB
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Advanced Audio Coding, Apple, iTunes, ITunes Store, MP3, Multimedia, Napster, Windows Media AudioMost View Software
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