The iTunes Music Store (iTMS) created by Apple, which provides legal digital music downloads, revolutionized the music market through its MP3 technology. Since its launch, the success of iTMS continues to be confirmed by a large number of downloads on the online store. In February 2006 alone, more than a billion songs were downloaded, against 250 million in January 2005. The brand strategy developed using the iTMS, is actually a strategy of "digital hub", designed to solicit all musical products of the brand and to maximize the use of the songs downloaded.
Following this success, we will try to understand what the impact of the digital revolution on the organization of markets is, the strategies of different actors, and new approaches to delivering a customer experience that creates value. By studying the case of the launch of the iTunes Music Store, we may understand the impact of the digital revolution on the organization and functioning of the music market, identify new game rules of the economy in real time, and the impact of these rules on the strategies of key players. This will allow us to understand the key factors of success of this new service in a dematerialized economy.
This study consists of two main parts. The first part provides an overall understanding of the market for online music and review the competitive landscape. We are able to study more specifically, the comparison between traditional and current customer experience. The second part is devoted to the iTunes Music Store and its competitors. We will attempt to identify the service provided by the iTMS and study its launch strategy, which was the source of its success.
We can thus identify a number of advantages of the current experience against the traditional. Indeed, the consumer has everything to gain by buying their music online. It saves the customer time, money and freedom.
However, despite the emergence of the market for online music in 2004, sales on the latter still remains a minority compared to the weight of traditional music purchases. The customer will then have time to access these sites for downloading music and legally download with their charges. Attitudes must evolve in this direction and acquire this reflex purchase online legally.
Online music is available in two forms: free and illegal hacking through the (peer-to-peer) and the other is charged and legal from online music sites.
For clarity, we will study a first step of the legal actors with major legal sites for downloads, record dealers and record labels, then a second time for illegal downloading sites.
Most majors are: EMI, Universal Music, Sony Music etc. The dematerialization of music through the Internet competed with the distribution channel of its majors. Initially, they adopted a defensive position. That is to say they were pursuing all competitors offering the P2P file sharing through the RIAA. They also created the specifications for portable players to distribute music in a secure (encrypted) format.
Then in a second time, record companies have launched their tour in selling music online.
Today, the market for online music is still dominated by illegal downloading sites, despite the efforts of industrial music. Indeed, they are the pioneer of digital music. They appeared in 1999 with Napster and their launch was possible thanks to MP3 technology and Internet development.
Tags: iTunes Music Store, music piracy, online music stores
[...] The music quality of AAC format remains good forever. The customer can then burn purchased music on an unlimited number of CDs, listen on an unlimited number of iPods, and put it on five authorized computers. He also has the opportunity to share his music with computers authorized by the local network via the "Share my library" feature in iTunes. When downloading, the client receives no unpleasant surprise: the download has the desired title, checked against the possibility of listening for 30 seconds before ordering. [...]
[...] The launch of the iTunes Music Store Overview Introduction I. Comprehensive understanding of the market Question The customer experience Question Competitive landscape today II. iTunes Music Store and its competitors Question The service offered by iTMS Question The launch strategy Conclusion Bibliography Appendices Introduction The iTunes Music Store, is a legal digital music download service created by Apple which has revolutionized the music market with its dematerialization its MP3 technology. Since its launch, the success of iTMS continues, confirmed by an even higher number of downloads on the online store. [...]
[...] Each week, iTMS offers a free download of a new single. ∂ Important book podcasts This service is free for the download of tens of thousands of podcasts. Podcasting allows users to automate downloading of audio or video programs, including to their digital media (such as the Apple iPod), the hard drive of their computer, for listening immediately or later. On iTMS, podcasts, whether audio or video, are classified by categories such as music, comedy, and news . with commentaries written by other users. [...]
[...] This service and the know-how of Apple inspire confidence, and attract customers with wide range of products and its platform which is pleasant and easy to use, designed by analyzed marketing techniques. Apple thus has become a prominent in the market for digital music. Bibliography Documents and books ⋄ Marketing Case - The launch of the iTunes Music Store in the United States, April 2003, April 2004; Dominique BILLON. If available on the platform cyber libris. ⋄ The New Marketing Techniques, BILLON D. [...]
[...] The user must certainly pay to download his music, but he does so safely and legally and can also enjoy the various benefits offered by the iTMS. ⋄ See Annex 2 Question Analysis of the launch strategy of the iTMS: brand, target, positioning, marketing mix . The launch of the iTunes Music Store, which took place April is part of a logical sequence that Apple has put in place to firmly establish itself on the market for digital music. The strategy implemented by the Apple brand is to multiply the uses and sales of its music products (iPod, iTunes software . [...]
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