OK, so I just finished watching the iPod event. After a few days of iPhone price-drop FUD I wanted to look at the event through fresh eyes.
Frankly, I was blown away. This is such an amazing and impressive line of iPods. They are going to sell like freshly baked Krispy Kreme doughnuts.
A lot has been said already about the iPods classic, nano and touch, so I won’t focus on that. What I will focus on is the iTunes WiFi music store…
...and Starbucks.
This is an absolute stroke of incredible genius. It works on so many levels. What Apple and Starbucks are doing here is replacing the physical record store with an enjoyable alternative.
With the advent of digital downloads and 32% of music released in 2006 being digital only, there is now no need to go to a record store. However, people enjoyed the experience of browsing through records and possibly meeting friends or new people while they were there. You can’t do that with digital downloads… until the Apple/Starbucks partnership. This partnership has given digital downloads a ‘place’ to buy music. Now you can hang out with your buddies in Starbucks, listen to music and buy it if you want. You’re not tethered to your computer to buy music.
When sat in front of your computer you are not likely to impulse buy, but out at Starbucks by yourself or with your buddies you are way more likely to impulse buy a track you heard as opposed to waiting until you get home and have thought twice about it.
The other very interesting thing I noted with regards to Starbucks was how they are diversifying into the production of music and by the looks of it, other content. The Starbucks guy mentioned they had won 8 Grammys. Could we be seeing an interesting development in which companies that weren’t traditionally music or media companies are moving onto the record companies’ turf and producing their own content? Content that could end up on iTunes.
These companies can afford to take a few more risks in this area as their sole income stream is not content. They would be only too glad to partner with Apple as they can easily and cheaply distribute that product via iTunes.
One final thing that I noticed was the continued Beatles references in the keynote. Both Lennon and McCartney’s albums were featured and KT Tunstall wore a “Love, Love, Love” T-shirt (coincidence?). I’m still of the opinion that these references were hinting at some kind of Beatles announcement. We’ll have to wait and see.
Oh, and as for that price drop, the audience thought it fantastic. That was the rabbit out of the hat moment. It’s amazing how that was turned into some sort of fiasco by the financial tabloid journos. Boy, how they are going to be proved so very wrong.