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iTunes Biggest Competitor is P2P

iTunes Biggest Competitor is P2P

by , 1:30 PM EDT, October 25th, 2005

Apple doesn't see Napster or Yahoo! as its biggest competitor in the music download market. That distinction goes instead to the P2P (peer to peer) file sharing networks that trade music illegally. Apple is hoping it can bring the file swappers back into the fold with fair prices.

Eddie Cue, iTunes vice president, told ZDNet Australia "Our view is that our biggest competitor is illegal music and P2P services. We always thought that if we offered a better alternative then those customers would be happy to pay."

Apple's iTunes does offer a friendlier interface that's easy to use, unlike some P2P file swapping applications that are cumbersome for new users. Combine that with the iTunes Music Store pricing structure where all songs cost the same, and a simple licensing scheme, and Apple is off to a good start. So far, the company has sold over 600 million songs world wide.

Of course, "free" is a hard price to beat, and that's the allure of the P2P networks.

As consumers shift from purchasing music on CDs to digital downloads, the battle may get tougher. Apple is taking on the challenge by expanding the iTunes Music Store into more countries, Australia being the most recent.

Mr. Cue feels that future music buyers will see their purchases only as "digital bandwidth," instead of CDs. That means Apple's biggest challenge will be convincing P2P music swappers of the value of purchasing music online.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: Absolutely True

Cue is right on, um...cue. (Sorry)

Not to sound like a broken record (remember those?), but 99 cents is still a lot for a DRMed 128Kbps file. Also, iTunes may have the largest digital song library in the world, but they rarely have what I want. They have a long way to go before I get on board in full.

I'm sticking with ripped CDs for now. (That's USED and non-RIAA CDs, thankyouverymuch.)

P.S. Just got my 5G black 60GB iPod an hour ago. Just had to tell someone. Can't wait to do something with it. (Stuck at work with iTunes 4. Grumble.)

Close Name:Guest
Subject: Dumb Ass

This guy is a complete moron.

Close Name:Guest
Subject: p2p helps ipod

As BillyK shows, P2P may compete with iTunes but probably helps iPod and kills the subscription model.

Close Name:Guest
Subject: subscription is almost P2P

The only thing Napster's CEO doesn't do when he discribes the concept is wink. All issues aside, subscription only makes sense if you are prepared to copy the songs you like so that you can keep them. Subscription is described as a formula that appeals to those into music. well, those into music have more than enough sources for easy listening, including advertising free internet streams. So if I were in that demographic, I'd subscribe only to get access to things I want to keep easily without the hassle of traditional P2P.
As it is, I'm not, but come on, even if it's 20 years ago, I still remember being 16.
And no, I'm not saying it's OK to do this.

Close Name:Guest
Subject: RIAA can french kis my ass

I won't pay for music ever

Close Name:gslusher Posts: 2088 Joined: 13 Nov 2002
Subject:

Quote
Guest wrote:
I won't pay for music ever


Gee, could I get you to come over and paint my house, free? You have to supply the materials and tools, of course. I'll just sit around and gripe about how greedy you are.

Of course, as events have shown, RIAA may not "french kiss your ass," but they may sue you into bankruptcy, only the Congress has ensured that you probably can't declare bankruptcy, either. Do you have $10-20,000 burning a hole in your pocket? That's what it will cost to even begin to mount a defense. If you lose, you pay not only the judgment but your attorney's fees. If you can't pay, they will be glad to take your house, your car, and your computer and garnish your wages/salary for the next whatever years.

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