iTMS rebranding

Posted:
in iPod + iTunes + AppleTV edited January 2014
I believe Apple made a grave mistake by lot licensing iTMS for other companies to offer it as a rebranded version accessible both by browser and iTunes.



Over here, in Germany, we have two music download stores which both offer rebranding - the more ambitious one (phonoline.de) will be launched on thursday featuring 250.000 tracks and gunning for 700.000 till the end of the year. And it is run by the music industry....



Apple could have licensed the backend technology and have others sort out music licensing issues - but I guess they are too US-centric. This is a pity, when iTMS arrives over here, it will be a complete yawner outside the Mac community. And there is nothing to keep the major labels from exporting the concept to the US.

Needless to say, their downloads are WMA 9....

Comments

  • Reply 1 of 11
    chris cuillachris cuilla Posts: 4,825member
    What makes you assume that that will not (in the future)?



    Another question...what would be the value in it?
  • Reply 2 of 11
    smirclesmircle Posts: 1,035member
    Quote:

    Originally posted by Chris Cuilla

    What makes you assume that that will not (in the future)?



    Maybe they will.. But then it will be too late - first mover advantage and all that has worked for them in the US is going to work against them in Europe.

    Quote:



    Another question...what would be the value in it?




    A guy from the music industry said in an interview:

    "you don't want someone without interest in music to sell it. Apple is a computer company after all - they do care more for selling hardware". Debatable as it may seem, it has some logic to it.

    Restricting themselves to providing the technology, T-Com has won the deal - there is no suspicion they will try and compete in the marketing of music ("Apple label" rumor anyone?).



    I predict that the big labels will learn from this and install their own stores in the US within one year. Not least because they can use the same guerilla marketing that made eBay strong: license your content to create millions of sites pointing to you.
  • Reply 3 of 11
    hmurchisonhmurchison Posts: 12,276member
    Duly noted but it's far too early to speak of iTMS decisions in past tense.



    We have yet to see the deals that Apple will cook up to keep iTMS in the forefront of peoples minds.



    Rebranding iTMS is as simple as removing Apple logos and possible making color changes. Trivial.
  • Reply 4 of 11
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by Smircle

    But then it will be too late



    I am sorry...but I have to take exception with your assumption here. MAYBE it will be too late. Maybe it will not. So far, Apple appears to executing a fairly good plan. This may (or may not) include the private-branding idea you are suggesting.



    I suspect that what Apple is trying to do (first) is to establish the brand...iTMS. Once this is locked, then they can do the following:



    - offer private branded music stores that are "iTMS Compatible"



    - license FairPlay to other hardware vendors and media player software applications ($5 a device anyone) that are "iTMS Compatible)



    - Continue selling higher margin iPods...because some people just want the best.
  • Reply 5 of 11
    smirclesmircle Posts: 1,035member
    Quote:

    Originally posted by Chris Cuilla

    I am sorry...but I have to take exception with your assumption here. MAYBE it will be too late. Maybe it will not. So far, Apple appears to executing a fairly good plan.



    Yes, in the US, they do. In the rest of the world (neglectable, I know) they are pretty late to the party. And I mean late like in "later than the pack".
  • Reply 6 of 11
    macsrgood4umacsrgood4u Posts: 3,007member
    Rebranding has already taken place. Remember when it was called Apple Music Store? (I seem to remember),
  • Reply 7 of 11
    amorphamorph Posts: 7,112member
    Quote:

    Originally posted by Smircle

    I predict that the big labels will learn from this and install their own stores in the US within one year. Not least because they can use the same guerilla marketing that made eBay strong: license your content to create millions of sites pointing to you.



    There's one small problem with your argument: Apple wasn't first in the U.S. Not by a long shot. The big labels had already tried to open their own online music stores here, and every one of them used Windows Media, and every one had inconsistent and restrictive DRM, and every one of them got steamrollered by iTMS when Apple finally got into the game.



    Here, at least, Apple's main advantage was that it wasn't a music publisher. That removed it from the competitive landscape and made every publisher OK with using Apple as a retailer. It didn't hurt that Apple's implementation was far superior, either, or that it worked with the successful iPod.
  • Reply 8 of 11
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by Smircle

    Yes, in the US, they do. In the rest of the world (neglectable, I know) they are pretty late to the party. And I mean late like in "later than the pack".



    But hasn't Apple already said that they are putting things together for Europe and Japan?



    They are working on it.



    I am in the U.S. so I don't know what things are like elsewhere, but I'm guessing that what DOES exist elsewhere in the world is a patchwork of download sites with a mish-mash of DRM restrictions and pricing...at best...to say nothing of weak libraries/catalogs of music.



    Apple is trying to negotiate terms that enable them to be consistent in their DRM, catalog/library contents and pricing across all of Europe. As has been stated by others in other threads, this is a complex process given the state and nature of music licensing in general, but internationally (non-U.S.) in particular.



    I am confident that Apple will debut a great music store by the end of 2004 for international customers, and that people will begin flocking to it.
  • Reply 9 of 11
    smirclesmircle Posts: 1,035member
    Quote:

    Originally posted by Chris Cuilla



    I am in the U.S. so I don't know what things are like elsewhere, but I'm guessing that what DOES exist elsewhere in the world is a patchwork of download sites with a mish-mash of DRM restrictions and pricing...at best...to say nothing of weak libraries/catalogs of music.




    Well, as I tried to point out, the situation at least in Germany is changing as of this week. A store that has 50% of iTMS' track count is not weak - esp. since their target is 700K tracks till end of year.



    What did make me take a closer look at their concept is that it is designed strictly as a middleware solution - it is open to both any label that wishes to join and any reasonably large company that wants to rebrand and resell it. Starting a smear campaign against iTMS (because of it being relatively closed on both ends) is a piece of cake.



    Quote:



    I am confident that Apple will debut a great music store by the end of 2004 for international customers, and that people will begin flocking to it.




    End of year, huh? Yeah, that sounds like gunning for commercial success
  • Reply 10 of 11
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by Smircle

    End of year, huh? Yeah, that sounds like gunning for commercial success



    Look, I'm only explaining what I've heard from Apple.



    All I am saying is that Apple is very likely AGGRESSIVELY working out the European details. I doubt they are sitting on their hands right now. But things just haven't come together yet.



    I understand we all THINK Apple needs to do such and such or this and that. Often most of us are plain wrong. Secondly we all tend to think that "I THINK it should happen, therefore it SHOULD happen. Therefore if Apple isn't doing it they must be stupid."
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