“Taking aim at parts of the iTunes-plus-iPod system, now that it has become a de facto standard, is unlikely to work. At one end of the spectrum are the internet services that want to outflank iTunes by finding different ways to introduce people to new music. Changing this process of discovery – usually by adopting the sort of social networking tools employed by MySpace – is at the heart of services such as MTV’s Urge,” Richard Waters writes for The Financial Times.
“At the other end of the spectrum are devices that try to outclass the iPod. Sony’s PSP may have been invented for games but it has a screen that is far better suited for watching videos than the iPod. In between are new distribution mechanisms that change the way music is downloaded to portable devices. In Asia, where the mobile phone rules, accessing music over a cellular network is already a big business,” Waters writes.
Waters writes, “Innovations such as these will find a market and Apple’s position will undoubtedly be eroded somewhat, to the relief of an entertainment industry that does not want to see it become the gatekeeper to all digital media. Its 85 percent market share of digital music in the US is twice Wal-Mart’s share of the DVD retail business, and even that is far too large for Hollywood’s comfort.
“Yet Apple is still the only company that can tie it all together. Others have set out to copy it but are far behind. Microsoft, after a false start, wants to build a rival ecosystem of its own, called Zunes, while Sony has been cleaning up its Connect service after a weak beginning. Watching these companies chase Apple, though, is like watching rival search engines take on Google,” Waters writes.
Waters writes, “For now, Apple looks well placed to absorb all these innovations into its digital media ecosystem, either through its own inventions or becoming a copyist in its own right. Recent hints by a senior executive seemed to point to an iPod phone as the next product to hit the market and no doubt social networking through iTunes will be coming soon. As long as those white headphone cords maintain their allure and Mr Jobs does not put a foot wrong, Apple should be able to stay at the head of the pack.”
Full article here.
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