Potential Mega-Profits for iTunes for M$ Windows

Posted:
in General Discussion edited January 2014
A little rough math for you...



In the time since iTunes Music Store went public in North America it has reportedly generated about US$7Million in sales. If Apple only makes up 3% of the personal computer market in that market, then we can assume the other 97% of personal computer users in that same market (who are interested in buying music online) would have made similar purchases had the service been available to them.



So, let's say that the Windows version HAD been available during that same period. How much revenue would it have generated? Let's do a little interpolation....





mac-iTMS_profits/apple_marketshare=windows-iTMS_profits/windows_marketshare



$7,000,000 / .03 = X / .97



.97 ( $7,000,000 / .03 ) = X



$226,333,333.33 = X



So, by using a crude interpolation you can see that Apple has the potential to crack some amazing profits in the North American market...especially if they REALLY start to pimp the iPod.

Comments

  • Reply 1 of 8
    There's going to be lots more competition by the end of next year. Sony just announced a music service to go on line with the 5 majors on board. It will start next Spring. Also, Universal just made a long overdue (say 6 years) change in CD prices. Suggested list on most product will drop to $12.98. Other labels will certainly follow suit. I suspect Apple will announce iTMS for Canada shortly. iTMS for Europe will probably roll out on a country by country basis with an announcement at Paris Expo. Guesses, of course.
  • Reply 2 of 8
    Your numbers should be reduced *significantly*, though, when you consider how much greater a ratio of Windows users use p2p software and are very content with it. Also consider that the Mac user-base is probably much better off financially and in the position to purchase music.



    One of the reasons iTMS has been a great success is due to the lack of easy, widespread p2p software on the Mac. Yes, we here may know about Acquisition and mlMac and Poisoned, but I strongly doubt as great a part of the Mac user-base knows them as much as the PC user-base knows of KaZaA.



    Regardless, iTMS for PC should bring in a lot more sales.
  • Reply 3 of 8
    smirclesmircle Posts: 1,035member
    No way. MS users don't exactly love Apple and its products (the same is true the other way around too, remember), so a market penetration of 5% on the windows market would be extraordinary.
  • Reply 4 of 8
    hmurchisonhmurchison Posts: 12,435member
    Just as no one store dominates CD/DVD sales. Apple, Buy.com and others all will be competing on features and not the music.



    The one that taps into the "pulse" of the Online Music Buying public will prosper. Apple needs to add ways of finding new music and other features to make iTMS the preferred source.



    Soon there will be multiple sources but each source will vary.
  • Reply 5 of 8
    cooopcooop Posts: 390member
    Agreed. Apple needs to continue updating the iTMS by integrating Amazon-like music rating and info services, releasing international versions, etc. to keep one step ahead of the competitors. Buy.com wasn't much of a threat but a conglomerate like Sony has the potential to unseat Apple unless Apple continues to innovate.
  • Reply 6 of 8
    I just hope there's not a lot of "exclusive" content going around. I'd prefer to see a situation where everything is available everywhere, let the best user experience and/or pricing win.



    Kirk
  • Reply 7 of 8
    yevgenyyevgeny Posts: 1,148member
    Apple should bundle a free copy of Windows iTunes with a Windows iPod purchase This is how they should enter into the Windows marketplace- through clever product bundling. Sell iTunes PC for something like $30 otherwise.
  • Reply 8 of 8
    screedscreed Posts: 1,077member
    No. This has been covered before. Do not sell iTunes; give it away. It's the drug sellers' adage: The first hit is free.

    You must give experimenters the freedom to download the software, browse the archives and get them right up to the point where they hit buy without any detours or blocks (like having them have to pay for the software).



    The numbers are unfortunately overoptimistic. As a trend, Mac buyers are a wee bit wealthier than their cheaper PC counterparts.



    The lack of more broadband users in the US is also a problem. Downloading one multi-megabyte song, let alone an album's worth, over dial-up is a pain.



    Screed
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