iTunes became the mp3 champion of the world by curbing illegal downloads while still allowing customers to “own” their purchased music files, but now the company is considering an entirely different model based on paid access, not ownership.
- Apple is planning to extend its mp3-selling business beyond its popular iTunes music store, which keeps purchased music files saved on a single computer.
- Having just absorbed lala.com, which allows users to purchase music that is stored remotely and accessible anywhere there’s Internet, Apple is considering a web-based mp3 storage model that will have a significant impact on the industry.
- Making music purchases available outside of the iTunes program will allow the company to reach more customers through search engines and websites.
Facts & Figures
- Apple paid $85 million to acquire LaLa Media Inc.
- Wal-Mart Stores Inc. was the biggest supplier of music until last year, when Apple usurped it.
- iTunes forecasts revenues of $2 billion this year.