Yet, you have to keep in mind that iTunes is just a store to promote
sales of iPod and not a music store business per se so Apple. The firm
is just breaking even with regards to sales of music to derive earnings
from hardware (iPod)... In addition, we need to remember that the
primary customer of the handset vendor is the carrier and they have to
provide handsets to their specs. So anything that deprives a carrier
from a projected revenue stream will not be supported in the market in
terms of subsidies. I believe that is one of the major reasons for the
delays in Motorola's phone... Nokia's music solution, on the other
hand, which provides a white label player and a music library from
Loudeye to carriers is more in tune with a carrier strategy than
Moto's-Apple deal.. I expect music to be delivered via these types of
ventures and at competitive costs than from the Moto phone. The best
advantage of Over the air downloads is that you remain portable.. that
is, you avoid having to synch up with a PC and remain truly wireless..
that is the advantage...the PC should just serve as a backup for your
music... However, we still need 3G technology for all of these to
happen, as download speeds still make Over the Air delivery
uneconomically even though the advances in codecs like AAC+ have helped
reduce the size of MP3s to about 1/4th of their current size improving
delivery over 2.5G networks.. Any comments?
From: Giovanni Bertani [mailto:giovanni.bertani_at_exsense.com]
Sent: Tuesday, April 19, 2005 10:40 AM
Subject: (keitai-l) Operators: Apple's iTunes on mobile phones? No way!
Quiet interesting Apple vs operators:
"Most major wireless companies, including Verizon Wireless and Sprint,
have reportedly balked at carrying the iTunes phone Apple has been
codeveloping with Motorola.
According to an international cover story in the April 25th edition of
Business Week, the cell phone carriers, along with Cingular/ATT, have
very different perspectives on how digital music stores should work and
are expected to charge between $2 and $3 for wireless music downloads
when they introduce their services.
"They figure they can charge a premium for the convenience of getting
songs anytime, even though customers most likely won't be able to
listen to those songs anywhere but on their phones, at least
initially," wrote Business Week's Roger Crockett. He cites a source
close to Apple who says wireless operators are "simply being
unrealistic" if they expect customers to pay $2 or $3 for a song,
especially with restrictions.
Instead the operators want customers to download songs over the air,
directly to handsets. But the iTunes phone would allow customers to
download songs to a PC or Mac and then copy them to the phone. "It's
hard for people in any industry to support something that cuts them out
of potential future revenue streams," said Graeme Ferguson, director
for global content development at Vodafone Group PLC. "
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Received on Wed Apr 20 16:12:43 2005