Originally Posted by TenoBell
Apple doesn't have to sell the most music to have a controlling interest in the success of the business model.
That's just one part of the business. The majority of the business sales uses a different model.
What you dismiss are the options of the competiton. No one is going to invest money into creating a music store chain, that's a dead end business. To open an online music store essentially is directly competing against iTunes and working with the iPod. You have to give people a good reason why they should use your music service with the iPod over iTunes. This gives Apple a monoplozing position over the market.
New technology such as the internet, changes the way some business is conducted. That doesn't mean that we can say that music stores per se have to be successful any longer in B&M locations. There are many more location in which people purchase music, such as Target, Walmart, BB, etc. Relying on music, and even video for the entire sales structure isn't a good economic theory anymore. Companies that have that as part of their sales are able to do much better at it.
Companies such as Amazon and others who do a very large amount of these sales over the internet have siphoned most of the sales from Tower and others. Downloads are just a part of that, and maybe no even the largest part right now.
This is the same thing as happened to book sales. First the big Companies such as B&N and Borders killed off many smaller booksellers, and then Amazon dug the knife in deeper.
You keep talking about Apple's iTunes as though it exists outside of all of this when it doesn't. It's just another distribution method. You're trying to turn it into another industry which it isn't. Like I keep saying, perhaps five years from now, downloading and streaming may become the major method of legally obtaining music. If that happens, then it will be different, and we will be able to agree on this.
Billboard charts are indescriminently reporting how much an album or single sold, that has little to do with how it was sold. When Ford reports how many Cars it sold it doesn't break out how many were sold through dealorship, or car rental companies, or to Zip car. Which are all different business models that don't directly compete with each other. But they all sell the car as a product.
But that's not true either. The amount of downloads a song is sold through is reported. As a matter of fact, for over a year, maybe two, every Monday, the NY Times has a box at the back of its business section that shows the order in which songs are sold as downloads. The numbers are available, and are often reported widely.
That was from Ars, they were talking about the UK. I doubt the results would be the same in the US.
Yeah, I saw the article again this morning. I forgot to look at the box on top and was just looking at the articles below.
But I don't agree there either. I do believe that people here aren't that different from people there. I know I'm not the only one who has downloaded an occasional song from itunes only to buy the album as a CD later, and even to buy several more from that artist if it was someone I was not familiar with before. In fact, ever since Apple removed the DRM and went to 256K, I've been buying some music from them. I never did that before. But I've always bought the Album on CD if I really liked the single. I've probably bought singles in the form of CDs at a ratio of ten to one over what I've purchased on iTunes. I know of others who do the same thing.