iTunes Music Store coming to Canada... Soon.
The Financial Post is carrying the following article over at the canada.com website, here's the full text:
Music giant readies Canadian launch
Market braces for Apple's download division, iTunes
Robert Thompson
Financial Post
October 13, 2004
ITunes, Apple Computer Inc.'s hugely popular online music service, is gearing up for a Canadian launch that could come as early as next month, music industry sources say. The launch of a Canadian iTunes store would dramatically alter the digital music landscape in Canada. To date, only Puretracks.com, Archambault.ca and Napster.ca have operated in Canada. ITunes, the world's most successful legal downloading service, with 125 million paid downloads in the U.S. since launching in April, 2003, skipped this country earlier this year over copyright issues. In June this year, Apple launched iTunes in Europe, selling 800,000 downloads in its first week. Phil Leigh, an analyst with Inside Digital Media in the U.S., said Apple's iTunes, in conjunction with its iPod MP3 player, now defines legal downloading for many consumers. "ITunes and the iPod have lived up to the hype," said Mr. Leigh, noting Apple controls more than 70% of the digital downloading market in the U.S. An Apple representative has met with Canada's four major recording labels in order to secure songs for the service, sources say. The sources added the launch could be delayed until February if Apple can't get its promotional material prepared in time for next month. Apple's Canadian officials said yesterday they do not comment on rumour. Apple skipped Canada earlier because it could not reach an agreement on royalties with the Canadian Musical Reproduction Rights Agency Ltd., an organization seeking a tariff on digital music sales. But it is now believed Apple will go ahead with its Canadian plans despite the uncertainty over the copyright issue. Mr. Leigh said Apple will likely unleash a marketing blitz to promote an iTunes launch in Canada. "It makes sense for them to be really aggressive in promoting iTunes because it also promotes iPod sales," he said. Alistair Mitchell, co-chief executive of Puretracks.com, the first legal downloading service in Canada (it launched last year) said he has heard rumours of an iTunes launch and has noted an increase in advertising in Canada for the iPod. However, he believes increased interest in digital downloading should be beneficial for Puretracks, which already has partnership arrangements with Bell Canada and Telus Corp. "I think they'll have a great impact on the space because of the money and marketing they bring to the area," Mr. Mitchell said. Mr. Mitchell would not disclose how many downloads Puretracks has had to date. Puretracks.com is owned by Moontaxi Media Inc., Records on Wheels, Key Publishers, Universal Music Canada and EMI Music Canada. Mr. Mitchell said downloads on Puretracks.com are of a higher quality than what iTunes is offering in the United States, a factor he expects consumers will notice. Mr. Mitchell would not say how Puretracks.com plans to respond to the launch of iTunes. "I'll leave that as an element of surprise," he said. "But it'll all be about promoting our quality."
© National Post 2004
Music giant readies Canadian launch
Market braces for Apple's download division, iTunes
Robert Thompson
Financial Post
October 13, 2004
ITunes, Apple Computer Inc.'s hugely popular online music service, is gearing up for a Canadian launch that could come as early as next month, music industry sources say. The launch of a Canadian iTunes store would dramatically alter the digital music landscape in Canada. To date, only Puretracks.com, Archambault.ca and Napster.ca have operated in Canada. ITunes, the world's most successful legal downloading service, with 125 million paid downloads in the U.S. since launching in April, 2003, skipped this country earlier this year over copyright issues. In June this year, Apple launched iTunes in Europe, selling 800,000 downloads in its first week. Phil Leigh, an analyst with Inside Digital Media in the U.S., said Apple's iTunes, in conjunction with its iPod MP3 player, now defines legal downloading for many consumers. "ITunes and the iPod have lived up to the hype," said Mr. Leigh, noting Apple controls more than 70% of the digital downloading market in the U.S. An Apple representative has met with Canada's four major recording labels in order to secure songs for the service, sources say. The sources added the launch could be delayed until February if Apple can't get its promotional material prepared in time for next month. Apple's Canadian officials said yesterday they do not comment on rumour. Apple skipped Canada earlier because it could not reach an agreement on royalties with the Canadian Musical Reproduction Rights Agency Ltd., an organization seeking a tariff on digital music sales. But it is now believed Apple will go ahead with its Canadian plans despite the uncertainty over the copyright issue. Mr. Leigh said Apple will likely unleash a marketing blitz to promote an iTunes launch in Canada. "It makes sense for them to be really aggressive in promoting iTunes because it also promotes iPod sales," he said. Alistair Mitchell, co-chief executive of Puretracks.com, the first legal downloading service in Canada (it launched last year) said he has heard rumours of an iTunes launch and has noted an increase in advertising in Canada for the iPod. However, he believes increased interest in digital downloading should be beneficial for Puretracks, which already has partnership arrangements with Bell Canada and Telus Corp. "I think they'll have a great impact on the space because of the money and marketing they bring to the area," Mr. Mitchell said. Mr. Mitchell would not disclose how many downloads Puretracks has had to date. Puretracks.com is owned by Moontaxi Media Inc., Records on Wheels, Key Publishers, Universal Music Canada and EMI Music Canada. Mr. Mitchell said downloads on Puretracks.com are of a higher quality than what iTunes is offering in the United States, a factor he expects consumers will notice. Mr. Mitchell would not say how Puretracks.com plans to respond to the launch of iTunes. "I'll leave that as an element of surprise," he said. "But it'll all be about promoting our quality."
© National Post 2004
Comments
As of right now I've been using our condo address down in the states to set up my iTunes account. It'll be nice to do direct billing.
Wooha.
Seriously, despite the promotion efforts it's clear that Puretracks and its rebranded variants (Bonfire, etc.) were really just attempts to make some money before iTMS Canada hit. The iPod is the dominant MP3 player in Canada as well, and I think that many people would rather buy CDs or go through - ahem - 'dubious' methods to get their music than to buy songs they know they can't take with them. iTunes will give people here a reason to buy music online.
As for PureTracks, they alienated Mac owners from the outset. I have no sympathy for them when they get steamrolled by Apple.
same goes for those planned retail stores in Toronto.
There are planned retail stores in toronto??
link to scoop?
As for PureTracks, they alienated Mac owners from the outset. I have no sympathy for them when they get steamrolled by Apple.
I know exactly how you feel.
Originally posted by satchmo
I'll believe it when it actually happens. Same goes for those planned retail stores in Toronto.]
Same here
I was under the impression that the Apple store in TO was still going to happen sometime in 2005, but haven't heard anything recently.
As for PureTracks, they alienated Mac owners from the outset. I have no sympathy for them when they get steamrolled by Apple.
True enough, but I think with Future Shop, et al. behind PureTracks, they won't disappear overnight.
Originally posted by ShallowThroat
There are planned retail stores in toronto??
link to scoop?
http://www.appleinsider.com/article.php?id=378
It'll be a slight conflict of interest when ITMS Canada debuts, it'll be interesting to see how BBY and FS Canada handle it.
An Apple store opens in TO - I'll up and move there and get myself a job