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Apple iTunes music store doomed?

by Bob Crabtree on 4 April 2006, 13:26

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Over at theage.com.au, Alan Kohler is predicting the impending downfall of Apple's iTunes music store. Although the piece doesn't offer a huge amount of evidence, history suggests that Kohler's line of reasoning may still be sound.

What he's saying, in effect, is that Apple will be overtaken in the not too distant future by companies using an open, licensable architecture because closed systems of the sort Apple uses to retain total control seldom if ever succeed long term.

He reasons,

The shock troops for Microsoft's victory over Apple in personal computers in the 1980s were Intel, Compaq, IBM, Dell, Toshiba and so on - that is the chip manufacturer and the cheap PC makers that licensed the Windows operating system.

With digital music and video it will be Nokia, Samsung, Motorola and Sony - the mobile phone manufacturers.

This year they will start releasing phones with the same storage as iPods - up to 30 gigabytes. iPods themselves will have to become phones.

Microsoft's software will power the new generation of phone/music players, and the business of selling digital songs and TV shows will open up. Google will probably run the most popular online store, but there will be thousands.

There are good reasons to think that Kohler is right to predict that Apple's current dominance in legal music/video file-downloads will come to an end. Windows, after all, is just one of many example of where an open system has taken over from a closed one, even if it arrives late in the day.

Ethernet networking  is another classic computer example. It  arrived after the established (but proprietary) token ring and Arcnet systems but with 3Com (founded by Ethernet's inventor Robert Metcalfe), DEC, Intel and Xerox working together to make Ethernet an industry standard, it rapidly came to the fore.

On the consumer electronics front, the most celebrated example of a late-arriving successful open system is VHS. JVC's Shizuo Takano, who came to be known as Mr VHS, toured the world's consumer electronics companies humbly offering them the chance to license the VHS VCR system for reasonable fees - something that Sony had been unwilling to do with Betamax.

TV rental companies and makers of TV sets eagerly took up Takano's offer and, consequently, the allegedly technically superior Betamax format, despite its earlier arrival to market having created a considerable volume of sales, ended up being swamped by VHS-standard recorders rented or sold under a multitude of brand names.

Your thoughts welcome in the HEXUS.community on the likelihood of Apple's iTunes music store being doomed and on open vs closed systems generally.

HEXUS.links

Saga of Mr VHS - USA Today
Videotape format war - Wikipedia
Ethernet networking - Wikipedia



HEXUS Forums :: 16 Comments

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Considering that Nokia have had iTunes running on a series 60 phone, also that both them and SE run Symbian variants not Windows Mobile I would take this with a pinch of salt. I think it is far more likely that iTunes will go from the dominant player to the foremost major player. Apple haven't been adverse to making it's software available for other systems if necessary, the iPod being a catalyst for iTunes for windows. Where they could get caught out is not moving fast enough on giving way to demand, ala Sony's grindingly slow admission of MP3 over Atrac.
Well i hope apples itunes go down the pan due to the Beatle's law suit. I for one will never use an ipod because it locks me into using apple products, it's a classic way of getting a captured market, unfortunately the world is full of muppets who cannot think for themselves and as such want a shiny white ipod cos it's cool rather than what can be done with it and the quality of it's sound.

I believe the French are currently bringing a lawsuit against apple because of the closed system. Good luck I say.

Another gripe (sorry in griping mood tonight) is the way apple put their software (itunes) into things like realtime player. The user installs this then finds itunes on the desktop when they never asked for it. It probably says so in the EULA but hey I'm sure I've agreed to sell my soul in one of those a few times.

i stands for idiot.
a) The PC OS wars of yore have NOTHING to do with music AND nothing to do with the POST-DESKTOP INTERNET period we are in now. The Ottoman Empire were great in the age of the calvary & muskets - not so much by 1918 - HISTORY does NOT necessarily repeat itself. In OS, you must choose one or the other, in music, the choice is NEITHER but Mp3 - the only real OPEN format.

b) In case you didn't notice, the MS WMA system is just as “closed” as the Apple's AAC files.*

c) MP3 has already WON. Since even Sony's players now play mp3 …

d) the battle is over 2nd place and itunes wins UNTIL WMA and WMA stores can replicate the following two things on a portable mp3 player.

1) Replicate the ease of use on itunes. ONE CLICK buys your track and loads it onto your ipod.

2) Design an interface as easy to use.

e) After over ONE HUNDRED portable mp3 players and maybe 20 WMA stores, the WMA crowd is still firing blanks. If you still want to bet all your money on them - good for you.

If you have time, here's the complete reasoning:
http://metroxing.blogspot.com/2006/01/ipod-anthropology.html

f) Go back and re-read reason D and add battery prowess. Until the phone companies come up with a player/phone that has 10+ hours of battery power and is as easy to use as an ipod … then come back. Storage doesn't matter if it's difficult to use. How many people buy motorcycles even though you can go forever one tank of gas?

g) I've own about 7 cell phones - of the ones you owned, how many of them have phone books that are difficult to enter or use? ALL of them? How many have interrafces as brilliant and as easy to use as the ipod? How many phones have been released and sold where what they claim and the actual ease of use is the same? Haven't they sold like 3 BILLION phones and about 5,000 choices since the beginning of time? How many are /were near perfect and easy to use? HARDLY ANY. Yes, some of the cases look nice but the interface & UI? Designed by engineers who have clearly NEVER MADE A PHONE CALL IN THEIR LIFE - and again, it's not it's 1981 and the phone is their second try - after 5,000 - you think they would've gotten further.

g) AND to compound it, the cell phone comapnies are all run by gov't officials or bureaucrats from state phone monopolies - the first people you want to go to for ease of use … and they are try6ing to claw every bit from us - crippling features and charging to upload & download anything. It is as one writer descibed - the Soviet politburo. How did they compete against capitalists? Again, if you want to back them - good luck.

h) Not sure why you keep thinking Microsoft is some powerhouse and some diety. They have FAILED at EVERY consumer business since Windows 1995. Yes, MSN, WebTV, Home Networking, MSN Search, watches, etc, etc … even Xbox ($8 billion to sell 25 million - wouldn't it be easier just to hand us each $400?) MS' time is done. Yes, they are brilliant at selling to gov't's and corporations but outside of that, they are the Soviet politburo.

i) Look at the Google video store. Look at itunes. re-read D above. The people who want to view motion/movie files on their computers do not need google - they can record, convert or DL elsewhere. The power is making that file portable. Again, until Gogle or YouTube or whomever can make it ONE click into your ipod (or any other device), then you are competiting … that's not to say there isn't a business as Google/Yahoo have in selling ads and links to page views but that's an ENTIRELY Different business.

Yes, things are complicated and I know some people would like simple answers so they can get their hands around things but two companies battling over something does not necessarily means it's the same fight nor the same result. Time and the world changes. You have to look at each circumstance and its unique set of facts and situations - not just blather that because the Ottoman's won battles decisively once, it will always be the case.

And as for Beatle-Apple legal suit - it's all about a logo when it concerns music - THAT'S IT. It's a TINY, TINY case and one that comapnies with bored lawyers face everyday.

* BTW, none of the music formats are closed since all (including WMA tracks) be LEGALLY converted to DRM free tracks by a few clicks and your ipod or and any mp3 player can function fine without any tracks from the online stores - you are even incorrect to call them closed since they are all legally open.

Yes, I know journalists have columns to fill and when they run out of facts, they start to idely and INCORRECTLY presume and speculate. Get the facts straight.
iranu
Well i hope apples itunes go down the pan due to the Beatle's law suit. I for one will never use an ipod because it locks me into using apple products, it's a classic way of getting a captured market, unfortunately the world is full of muppets who cannot think for themselves and as such want a shiny white ipod cos it's cool rather than what can be done with it and the quality of it's sound.

I believe the French are currently bringing a lawsuit against apple because of the closed system. Good luck I say.

Another gripe (sorry in griping mood tonight) is the way apple put their software (itunes) into things like realtime player. The user installs this then finds itunes on the desktop when they never asked for it. It probably says so in the EULA but hey I'm sure I've agreed to sell my soul in one of those a few times.

i stands for idiot.
“i stands for idiot.”

And your sign in name is iranu?

What are you trying to tell us?

The ipod doesn't lock you into anything. itunes is free. You can load 25,000 tracks from your personal collection or buy no DRM tracks and it runs perfectly fine. If you prefer not to drive to a store or have to rip your own CD, the store is there for you but if you never use, you lose no features.

And of course, anything popular must be idiotic or is it just anything you haven't purchased? You have to look at yourself and wonder - why is that I have to sneer at anything others use either out of jealously or is it something else? How can you live among the rest of us idiots, you intellectual and esthetic giant?

Then you note, “
Another gripe (sorry in griping mood tonight) is the way apple put their software (itunes) into things like realtime player. The user installs this then finds itunes on the desktop when they never asked for it.”

Which of course makes no sense but perhaps English is not your first language so I apologize if that's the case:

Apple does not put things into the “realtime player,” which I presume you mean the REAL PLAYER from REAL - which is not an entirely different player/format & from another company so no, Apple does not put its player into someone elses. You are wrong there.

And in the case of installation - Apple's installers are very clear. You click YES or CANCEL. Unlike Sony's rootkit, if you click CANCEL, it stops. And yes, if you don't wish to use itunes, you cannot use it with an ipod but I'll bet you'd the first in line to compalin if Apple didn't include a jukebox or ripper (BTW, Apple included a ripper for free when Ms was still charging you $19.99 - after itunes came out, MS quickly added that feature for free).

But its' a choice. You have plenty of mp3 players from dozens of companies and you have over 20 WMA stores to buy from so if you worship at the MS diety, great - good on ya - why the problem when peope buy something else? I'm guessing you use a PC so you are in the majority there - does that upset you also there's a crowd for something you've purchased?
iranu
i stands for idiot.
what does the ranu stand for, then? :lol: ;)

Edit: bah, someone's already said that. That'll teach me for typing a reply then forgetting to click Post until a couple of hours later.