So it seems a lot of people got iTunes Music Store giftcards for the holidays. I’ll even bet my money that little Johnny down the street got that iPod he asked for too! So with all this hoopla of Apple-ness going around, iTunes sales skyrocketed and people logged on to iTMS to purchase songs. Visits were up a whopping 413% compared to last year’s Xmas. Anyone who wants to start beef with Apple’s numbers better step up to the plate and bring it!!
Hi Vince, although those are nice numbers – they don’t solve the problem with itunes, once people download their favorite songs… they don’t buy them again! So, sure there is a surge caused by first time users but then, it will drop back down to zilch.
Music companies knew this for years, hence why there was a new format every few years (vinyl, tape, cd etc… ) so you had to re-purchase your music again… don’t have that with itunes. My guess is in a year or two, they will offer music at a higher sampling rate and guess what… you need to purchase the song again!
Jon
I’m not at all surprised. It was certainly a Christmas of gift cards.
I’m all for offering various bit-rates at different prices. I would certainly rather just spend a little more for a high quality file. Perhaps offer the lower quality with the subscription services with options to buy better quality.
I’ve head this idea a number of times and I believe its a viable way to go. I hate DRM but its in the grand scheme its not all that much of a bother to my everyday life. My ipod died a while ago and i still have all my music purchased through itunes along with a number of Tv series. I’m tied to itunes but as long as they keep reasonable application development going (and i chose to buy another ipod at some point) i don’t mind all that much.
The gift cards are a great way to get people in the door. Sure these numbers are not going to remain consistent, but if people can see how easy it is to download their favorite songs from iTunes legally, they will come back to grab that newly released hit song instead of going to Best Buy to pick up the CD. I still see a bright future for iTunes.
I saw this story on CNN actually. Gift cards are extremely popular and I think they’ll remain popular. I think everyone would rather get a gift card then stare at something he/she will never use.
I have rarely actually bought songs from iTunes. Mostly, I resent any concept of having the usage of media restricted after I purchase it. So, I’ll find other sources for music….
Jon, rather than repurchasing, I see more of an “upgrade” offering, eg, current software, per se. What everyone is still stuck on is the physical – “I own it” mentality. Sorry, but you don’t, it’s just a long term rental. So, all you’re doing really is paying for better service as it becomes available. With the whole entertainment scene shifting towards pcs and intangible media, you no longer need to repurchase anything physical (for the most part).
I hate anything I can’t purchase online and download. CDs/DVDs and players are nothing more than a waste of space/money, imo, and misleads people to believe they “own” something on every new piece of media just because they have the eight-track laying around somewhere… :)
media is finally starting to go the way of saas.
No wonder it took me forever to connect to iTunes store on Christmas day to cash in my gift card and d/l a movie.
Lp