Music industry watch
Music downloading: $$$ or not??
Since the debut of Apple's iTunes Store for Windows there have been some interesting news reports covering the launch and reviewing the windows app. M$ says things that are completely counter to what Apple says, which is to be expected. But one one quip from Jobs is interesting:
But Jobs contends that in the long run the competition will boil down to Apple and Microsoft. “Between the license fees and the credit-card charges, there’s no money in online music,” he says. For Apple, the payoff comes in selling the iPod players that work hand in hand with the store: more than a million have been sold, and in the last quarter, Apple moved 336,000 units.
And then M$ gets into hot water with the DOJ over their stupid link in the MyMusic folder which points to a site where users can purchase music online from M$:
The company [M$] said Monday it is willing to work with the government but does not believe the design is illegal. Online music purchases are expected to be one of the most-lucrative areas for Internet commerce.
Jobs says it won't generate money and Bill is willing to get into more trouble with the DOJ over the exact opposite. Who is smoking rock here? I'm inclined to agree with Jobs here -- if the record companies are involved in this process as they are now, they are the only ones who are going to make money in this process. Not the tech companies or even the artists.
What is M$ up to? I'd guess:
- M$ has found some sneaky way to squeeze the record companies
- M$ has ulterior motives where more music traffic will drive sales of something else -- just as Apple is doing with the iPod.
- M$ is losing its marbles and has no clue about the record companies
#3 is not a likely story and #1 seems unlikely as well. I guess we'll have to wait and see.
Posted by Mayhem at October 21, 2003 01:57 PM
