Category: Shift to Web delivery

Apple Announce iTunes Online and New iPods

As previously rumoured, Apple announced two music-related products yesterday – the new iPod‘s and their iTunes Music Store service. The iPod is essentially an upgraded, thinner version of the current machine that holds up to 30GB. It comes with a new docking cradle and the same unit will work on both Mac and Windows (later in the year).

The iTunes Music Store is the really exciting part. It sounds like it’s simplicity itself, as they provide 30 second, full quality previews of each track and buying is easy as they’ve licenced the Amazon 1-click system. The initially 200,000 tracks available provided by the big five record companies (BMG, EMI, Sony Music Entertainment, Universal and Warner) and are individually purchasable prices at 99 cents a track. They’re stored in AAC format but users will be able to burn unlimited CD’s for personal use and will be able to copy to unlimited iPods Old and New, and to three different Macs. Interestingly downloaded music is sharable between machines on the same wired or wireless network – and by using streaming rather than copying they will placate the music industry. Sadly, due to the licencing restrictions from the music companies, the service will only be available in the US – at least initially.

Video: Steve Jobs launches new iPod’s and Music Store service – watch it

Apple secrecy on unreleased products is legendary, so it was amazing to see that all of the details of todays announcements were disclosed on slashdot back in December. I wonder if the poster is still working at Apple?

Moves afoot in electronic music distribution

Real Networks have announced its intention to acquire Listen.com for around $36m in cash ($17.3m) and stock. They’re gaining the music assets (they have around 320k tracks on their service), their technology, subscribers (however there may be) and openings to their distribution agreements with a network of more than fifteen companies.

Listen has been around a long time and I’ve always been impressed with their virtual radio station service. There can’t be huge amounts of subscribers as in the statement they detail the level of Listen losses at $1-2m per quarter. It looks like Real is strengthening itself for a fight and on that front …

There’s further talk about the Apple online music service that is slated to launch on 28th April which will only be open, initially at least, to users of Apple computers. Apple only has 3% of the computer market but this worked in their favour when try to get access to the big five record companies content for the service. The music companies felt they weren’t exposing themselves and their content to the whole World, allowing them to “dip their toes in the water” of a different, non-subscription model.

I think it’s interesting that the proposed launch date is just one day before the Vivendi meeting, where they were rumoured to be making their intention to bid for Universal. Possibly co-incidence — potentially a great way of getting free press for the service.