“Banc of America Securities said the launch of a new paid music download service from Yahoo! will ‘have very modest near-term impact’ on Apple Computer. The research firm said Yahoo! Music Unlimited offers individual songs for sale and a subscription music rental service, similar to what Napster already offers. ‘The stickiness associated with iTunes and Apple’s hardware has had a protective effect (as they are only compatible with one another), and Apple has held share in music downloads and gained shared in MP3 in the last few quarters,’ the research firm said. ‘If the subscription model does prove to be popular, we would expect Apple to counter and match with a subscription model of its own, which would increase margins.’ Banc of America cut the target price on Apple to $44 from $47.50, based on compression of the valuation multiple, not on changes to earnings estimates. The firm reiterated a ‘buy’ rating on Apple,” Forbes reports.
Full article here.
MacDailyNews Take: Apple’s iTunes Music Store is compatible with things other than just iPods. Non-iPod owners can use the iTunes Music Store to purchase music, burn CDs, and more. Apple iPods are compatible with things other than just the iTunes Music Store. Non-iTunes Music Store customers can use their iPods by ripping CDs, playing MP3, Audible, WAV, AIFF and other formats which they can get from many other sources. With those clarifications, we agree that iPod “protects” the iTunes Music Store. If an iPod owner is to buy from a legal online source, most likely they’ll use iTunes to buy from Apple’s iTunes Music Store.
Related MacDailyNews articles:
Enjoying Apple’s iTunes and iTunes Music Store without owning an iPod – May 11, 2005
MarketWatch incorrectly reports that iTunes Music Store songs can only be played on Apple iPods – May 11, 2005
Yeh-heh-hesssssss
Apple’s iTunes Music Store and iPods have poop stickiness, protective poop effect
Bank of America come poop on me
Triumph:
Don’t you realize that the gag that you are doing was a fad and is over?
Uh, and come back with something original…
Did anyone other than 3 year olds even find Triumph funny?
…the real Triumph. His run was pretty good, but I haven’t seen him around here for a while. Haven’t seen him since the idiot rip-offs showed up. He always acutally had SOMETHING to say, other than “poop” and “yeessss” (although he did use those a lot too).
Triumph is pooped out.
Pictures at 11
Subscription services tie you down to only one music store.
Microsoft says being tied to only one music store is bad.
I believe them.
Listen to Microsoft, don’t use subscription music.
The difference between analysts and normal people is that analysts are paid for making obvious observations.
The difference between analysts and my poop is that analysts are paid for eating my poop
Yeh-heh-hesssssss
Triumph (the insult comic dog), knock it off, you idiot. That doesn’t even make sense. Analysts are not eating your poop. I wish the REAL Triumph would come back and register his name. He was actually worth reading.
Triumph has some great takes, so I wouldn’t dog him just cuz his other takes don’t make me roll off the floor.
Please don’t ask for the REAL Triumph to come back. the real one was also never making any sence… with is yeses and poops
Sorry you never cared for the commentary, Luis. And thanks for the comments, Gambit.
shut up — I wasn’t aware there was a method to register the name here. If I could figure out how to, it might be worth it.
maybe I’m wrong…never looked into it. I just assumed that the names in blue were registered. Does that mean they just entered an optional email address?
Here, I’ll try it.
Guess that was it. Too bad.
Triumph,
If you want a nice forum to discuss your views and stretch your creative posting legs, register at forums.dealmac.com, or appleswitcher.com. I’m sure you would entertain many at either venue…and not get ripped off.
“Apple’s iTunes Music Store is compatible with things other than just iPods. Non-iPod owners can use the iTunes Music Store to purchase music, burn CDs, and more. Apple iPods are compatible with things other than just the iTunes Music Store. Non-iTunes Music Store customers can use their iPods by ripping CDs, playing MP3, Audible, WAV, AIFF and other formats which they can get from many other sources.”
A bit of a reach but ok. The fact is iTunes can’t be used by non-iPod users in any meaningful way when it comes to other digital music devices. You can list all the things iTunes does for non iPodders but I am sure it is as valuable to them as the functions of Creative’s software is to me. That is to say it’s not. And nice job listing all the formats the iPod is capable of playing. I am not sure that really addresses the issue of the iPod being a closed system when it comes to purchasing legal digital music but whatever floats your boat…
Fact is it is the symbiotic relationship of iTunes and iPod that will keep the dominance of the digital music market viable for Apple for some time to come. No reason to point out inconsequential facts to somehow lessen that reality.
Sorry you never POOPED on the commentary, Luis. And thanks for the kisses, Gambit.
shut up — I wasn’t aware there was another method to POOP my name here. If I could figure out how to, it might be worth it since my poop is fresh
I’m warming up to the idea of subscriptions especially if I could buys songs I liked on the fly.
For instance – I DL some subscription songs – listen to them when I’m on my travels. I hear a song I like and want to keep so I press a few buttons on my ipod and it saves a request to buy. Next time I sync, it goes straight to iTunes and asks me if I really want to buy the song, click yes and now I own the song.
If the model is right, it could allow Apple to stimulate more song purchases because people can hear the whole song.
If Apple does launch a subscription service, be assured that it will not be like the rest. Innovation is in their DNA.
The main Advantage that Apple enjoys, which is referred to but not really outlined clearly is the deadly trifecta of iPod-iTunes-ITMS. No other entity, including Yahoo, can offer the same seamless user experience. The Apple offering is just better, and it will take a lot more that someone threatening them on just one of these fronts to best them.