iTunes Match viewed as break-even but important business for Apple
Reply 21 of 24
December 8, 2011 3:14PM
Originally Posted by
Actually Google Music DOES support the PlayLists in iTunes and the upload of about 7000 songs took about 6 hr....
The Apple Match is of little interest to me because it does not support streaming and will not work on most non-apple devices. Google Music works on all of my computers and devices....
Currently, iCloud/iTunes Match streams or downloads on Macs & PCs, streams on the Apple TV, but downloads on the iPod touch, iPad & iPhone.
Reply 22 of 24
December 8, 2011 3:48PM
Originally Posted by
iTunes is already generating ridiculous profits. Apple reported more than USD $6 B in net sales from "Other music related products and services" for FY 2011 (Includes sales from the iTunes Store, App Store, and iBookstore in addition to sales of iPod services and Apple-branded and third-party iPod accessories). According to Apple:
"Net sales of other music related products and services were $6.3 billion in 2011, representing an increase of $1.4 billion or 28% compared to 2010. The increase was due primarily to increased net sales from the iTunes Store, which was largely driven by App Store expansion into new countries that contributed to strong growth in all of the Company?s geographic segments. During 2011, the combined net sales for the iTunes Store, App Store and iBookstore was $5.4 billion, representing an increase of 33% compared to 2010. The Company believes this continued growth is the result of heightened consumer interest in downloading third-party digital content, continued growth in its customer base of iPhone, iPad and iPod, expansion of third-party audio and video content available via the iTunes Store, and continued interest in and growth of the App Store. Net sales of other music related products and services accounted for 6% of the Company?s total net sales for 2011."
I believe Apple's emphasis on user experience is more appropriate than focusing on a product line. While Apple advertises iPhone, iPad and iPod these product lines are known (to Apple consumers) to be integrated into the Apple ecosystem. I consider iTunes to be a major aspect of the user experience which appears, to me, to be the focus of their advertising strategy. iTunes and iCloud are the value proposition for Apple products, if Apple (strongly) independently advertised their ecosystem then the focus is removed from their primary sales drivers (hardware) to services. Apple is, first and foremost, a consumer electronics company and will likely remain so since Apple is able to differentiate their products in ways their competitors can't imagine (primarily through control of exceptional design, manufacturing processes and amazing software).
Thanks for the comment. Note Apple talks about Net Sales, but not profitability. They always couch it as saying they are running it near break-even.
I love to see Apple set a goal of building this into a $25 billion revenue /$5 billion profit business in the next three years
Reply 23 of 24
December 9, 2011 6:19AM
Originally Posted by
You can upload 128Kbps MP3s and then re-download 256Kbps AAC with Google's service?
if music is matched properly than there is no uploading at all, only matching which takes few minutes… my 5.5k library songs matched perfectly 4.8k tracks…
Reply 24 of 24
December 9, 2011 7:02AM
A few comments:
I also find that iTunes Match is riddled with errors and crapshoot functionality. My biggest problem is that it will turn itself off, possibly related to switching stores. The iTunes Store you're logged into shouldn't affect Match, which should simply be restricted by your iCloud settings, not the Store setting. Then, once it's broken your March link, changing stores back and turning Match back on simply doesn't work. Your settings say Match is on, and 'all songs' is selected, but the Music app refuses to show any songs that are not already downloaded.
Also, I completely agree with Munsters claim about capacity.