Target to launch online digital music service; incompatible with Apple iPods that Target sells

“Consumers love digital music, they’re just not that eager to pay for it. Perhaps Target can help change their minds. The Minneapolis-based retail chain is close to a rollout of a digital music subscription service, say people familiar with the company’s plans. Target will offer single-track music downloads, similar to those offered by Apple Computer’s iTunes store, but the emphasis will be on all-you-can-eat monthly subscriptions, putting it in competition with offerings from Napster, Yahoo! and RealNetworks,” Peter Kafka reports for Forbes.

“Executives at major music labels who have seen Target’s presentation say the offering, which will be powered by Seattle-based Loudeye, will offer both a “tethered” service, which allows customers to use the service only on their PCs, as well as a “portable” service, which allows users to move the tracks to compatible music players–which, notably, does not include the most popular digital music player, Apple’s iPod. The portable service, sources say, will likely be priced somewhere between the $6.99 charged by Yahoo! for Yahoo! Music Unlimited and the $14.95 charged by RealNetworks and others for their portable services,” Kafka reports.

Full article here.

MacDailyNews Take: Kafka doesn’t mention that Target sells Apple iPods, iPod minis, iPod shuffles, and iPod accessories that will be incompatible with their online music offering, à la Wal-Mart.

Related MacDailyNews articles:
Morgan Stanley: Apple, Wal-Mart pact broader than some realize – June 15, 2005
Wal-Mart begins selling Apple’s iPod mini in select stores – February 01, 2005
Apple’ Mac mini in high demand, faces backlog; Target.com now selling Mac mini – January 21, 2005
Wal-Mart begins selling 20GB ‘Apple iPod from HP’ which is incompatible with Wal-Mart Music Download – September 19, 2004
Target stores to carry iPod – October 23, 2002

21 Comments

  1. What is it with retailers that they think they can successfully run their own online music stores? It’s like they are begging for a smack down, and writing a big check for it. This is quickly going to go the way of Walmart’s and Best Buy’s music efforts.

    It also shows why it’s so important that Apple maintains control over the iPod/iTunes synergy. Cause as soon as Apple opens it up, every mom and pop shop in existence will be selling iPod-compatible music and taking song sales away from Apple.

  2. It’s fitting that the reporter’s name is Kafka because it is Kafkaesque that yet another outfit wants to try to go against Apple with a losing subscription plan.

  3. Okay, there’s not really anything teribly interesting going on here.. seriously.. Target CANNOT lisence the Faitplay tech, so they use WMA.. which means that if they want to get involved in digital music, they HAVE to go with MS..

    Which at this point, means they’re resigned to eating Apples tablescraps…

    I’m not being a zealot, that’s just the way it is.

    So what does Target get out of it? Well, they just incorporate it into their website, which means it will draw people to their site, to hopefully pick up some cheap music and then, browse around and look at other, more profitable purchases like, clothes, electronics (not made by Apple) etc.

    In other words.. they’re not making money from music.. Microsoft will make money from the lisencing thing..but Apple rules in Digital Music.

    it’s almost anticlimactic.. these stores come out… and are automatically resigned to secondary status, because they don’t work with iPod.. and MDN gets to remind people that.. no.. this store isn’t going to dent iTunes.

  4. That first paragraph is very misleading. If I am not mistaken, Apple has had nearly 500 million tracks purchased from their service. So, aren’t minds already changed?

  5. The problem for Target is that the “Target crowd” is buying as many iPods as the “Nordstrom crowd.” If they weren’t, why would Target still be selling iPods?

  6. Excellent news! The more competition in the subscription camp the more infighting there’ll be. All will make profit-killing moves to outsmart the other. Meanwhile Apple will be providing the popcorn so we can watch the spectacle.

  7. The real issue here is WHY THE HELL IS ANYONE BUYING AT TARGET? Does everyone here know that Target is a FRENCH owned company? That’s right, the very fags that didn’t have our backs in Iraq. As a matter of fact, they won’t even donate to US Military charities. Anyone wonder why? BOYCOTT TARGET – THEY ARE COMMUNIST BASTARDS!!!!!

  8. Every box store wants a music online store. Apple should design it for them! Just create a entry page with the box store’s logo (Target, Best Buy, etc) which is on their main website, which takes the consumer to the iTMS.

    Apple should open up portals to their iTMS!

  9. the time way back in the 90’s when everyone was offering free email on their sites, or when there where all those “free internet” service providers. everyone is jumping on the “download music” band wagon and the truth is that the market will decide; and so far, it itunes music store all the way.

  10. The utter stupidity of your Iraq BS aside, target is based in Minnesota. It was once the Dayton Corporation, but changed its name to Target Corporation.

    The Dayton family has lived in Minnesota and owned the Dayton’s/Target stores (and more recently Mervyn’s and Marshall Fields) for nearly 100 years.

    Mark Dayton (a family member) is the senior US Senator for the State of Minnesota.

    Target is about as French as you are intelligent. Go back to your Fox News broadcast, and when they get to the part where W’s approval ratings are around 40%, get despodent and shoot yourself in that unused head of yours.

  11. Changing the subject just slightly: The real issue here is WHY THE HELL IS ANYONE BUYING AT WALMART? Doesn’t everyone here know that Walmart is a CHINESE owned company? That’s right, Commies with a gun pointed at our collective heads. As a matter of fact, they won’t even donate to US Military charities. Anyone wonder why? BOYCOTT WALMART – THEY ARE COMMUNIST BASTARDS!!!!!

  12. “Walmart still has an online music service? Really?”

    Yup… it’s the best place to get decent sized CD cover graphics for your downloaded music to put in your iTunes database!

  13. While they are at it, why don’t they also come up with their own operating system? The Target OS. Kind of has a nice ring to it.

    They will soon find out that selling music on-line is not as easy as selling patio furniture on the web. The iTunes music system is the entire experience, and it “just works!”

  14. Why does anyone ever buy from Apple. They’re a foreign owned, french loving, ultra-wing, flaming, neo-thing, russian speaking, dog beating, child hating, quiche eating, pro-amphibian, product promoting, orange, chapstick wearing, air-breathing, earringed, “won’t bend over to pick up a quarter”, donut shaped, vendetta regretting, anatomically incorrect, far from Jersey, vw kit building, hamster painting bunch of GROOLS!!!!

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