This is how Apple rolls and I must say I am impressed although it was expected.
They have long been sitting on one of the strongest and certainly most profitable "social" networks.
Now they have used it to do one of the most classical goals in business. Profit maximization.
I don't even think this is something other companies can learn much from as most seem to be walking around like lemmings trying to incorporate features to grow their (non-paying) following.
Be patient for growth not for profit as Clayton Christensen says.
Will they really have to take on Spotify though? Mightn't the content providers look at Apple's more attractive market and just pull the plug on Spotify (which would be cannibalising their own ITunes/Ping sales)?
That might happen of course, but the question is whether they will see that or whether they will think hey! two revenue streams.
None the less I believe music will go streaming, it has to which becomes really obvious once you try out spotify (well it did for me and most of my friends who use it)
For the users it's obvious that streaming is the way to go, Spotify is golden. But for the producers? I think it's possible we might see the streaming model completely abandoned.
An interesting thought is whether they'd experiment with the rental model (pay per play) for iTunes music. Not just interesting economically but in terms of how appreciation of music might change.
They have long been sitting on one of the strongest and certainly most profitable "social" networks.
Now they have used it to do one of the most classical goals in business. Profit maximization.
I don't even think this is something other companies can learn much from as most seem to be walking around like lemmings trying to incorporate features to grow their (non-paying) following.
Be patient for growth not for profit as Clayton Christensen says.