According to record industry sources, 250,000 songs were purchased and downloaded on iTunes music store's first day, at a cost of 99 cent each.
Analyst Rob Enderle of Giga Information Group, a unit of Forrester Research, told Duncan Martell of Reuters, "For the launch of a service that is Apple only, those are good numbers." Apple hasn't yet released any figures on how much it spent to develop the online music store. This is why "at this early stage we do not have a good indication of the profitability of this service," wrote Dan Niles, an analyst at Lehman Brothers .
The Apple's online music store will be competing not only with free file-swapping tools like Kazaa and Morpheus but also with paid services offered by the record industry like MusicNet, Rhapsody and PressPlay. The service will be made available to Windows-based PCs, which account for 90% of the market, starting later this year, a step that is fundamental to profitability of the system. "The big revenue opportunity is when they move this off the Apple base," Enderle said.Posted by Valentina Pasquali at May 03, 2003 12:27 PM | TrackBack