Why Apple iTunes Store + The Beatles would be a very big deal

“Apple Inc’s settlement with Apple Corps has triggered much speculation about the arrival of Beatles catalogue on iTunes Music Store. Whereas this settlement doesn’t mean that the catalogue will suddenly appear tomorrow, it was an essential hurdle that needed clearing before it could happen. That said, the numerous other elements being negotiated in this are probably already at reasonably advanced stages and there is speculation that it will happen as early as next week,” Mark Mulligan blogs for JupiterResearch.

Mulligan writes, “So, just how big a deal is getting the Beatles online? Well, quite a big deal actually. For Apple it means that they can finally say that the iTMS is a universal offering with no major gaps. They also get to have a premier music brand on board and a sure thing in terms of sales. However, given the negligible margins in digital music sales the latter factor isn’t the key issue. It’s all about enhancing the overall proposition and then using the Beatles brand to build the iPod and iTMS brands.”

“What is means for the Beatles catalogue is access to new customers and, more importantly, strong marketing potential,” Mulligan writes. “…If Apple’s marketing strength is fully utilised it’s not fanciful to speculate that the Beatles could dominate the singles charts in 2007. Combined with, perhaps, a new CD and heavy promotion of existing albums, could generate strong sales.”

Full article here.

Related articles:
Wired News: Apple iPods pre-loaded with music are about to become the new CD – February 06, 2007
NPD’s Crupnick: Beatles-iTunes deal ‘almost certain’ – February 05, 2007
Apple Inc. and The Beatles’ Apple Corps Ltd. enter into new agreement – February 05, 2007
The Beatles to share the love with Apple’s iTunes Store on Valentine’s Day? – January 16, 2007
Apple close to offering Beatles music via iTunes Store – December 05, 2006
Fortune: Apple close to landing exclusive iTunes Store deal with The Beatles – November 27, 2006
The Beatles catalog to be available for download ‘soon’ – November 13, 2006
Apple will do ‘everything we can’ to lure The Beatles to iTunes Music Store – May 10, 2006

42 Comments

  1. The Beatles Albums will certainly help in getting a wider fan base to check out iTunes. The bigger question on my mind is why is there an ad next to this text field for WOW windows vista?

    WTF, do we really need to advertise for the evil empire?

    Jeez it’s like Han Solo going to the dark side full-time and killing Chewey!

    -Pi

  2. “Apple it means that they can finally say that the iTMS is a universal offering with no major gaps”, and this, actually means, that any other artist that is not in the iTMS is not relevant. So, You want to be relevant? get up on the iTMS train. Same for the Movie studios.

  3. “universal offering with no major gaps”? Not quite. There are some favorite Van Morrison pieces yet to appear. The Wavelength album appeared in the earliest weeks of iTunes, then disappeared, never to be seen again. Many other odds and ends favorites never made their appearance, so I may have to convert them from LP, scratches and all, to MP4/AAC using something like iMic (unless anyone has other recommendations).

  4. The idea that the Beattle will somehow make a difference for iPod or iTunes or is CD-sales thinking. Certainly, it will be nothing but positive, since they are loved by many. They will sell millions and there may even be a noticeable one week (or so) spike in sales. CD sales are driven by major acts and hits and iTS certainly needs to have those. However, online sales are from a more diverse set of groups/bands/acts, since it allows single tracks to be purchased and, therefore, is less about the hit CD or high profile band than quality songs.

    I am sure people that love vinyl and believe the concept of an album was created in 2000 BC will disagree, but online sales, by favoring quality songs, improves the music industry, which hypes only a few ac ts. The Beattles obviously are NOT the result of hype and have CDs where nearly all the songs are high quality. My point is not to dismiss or insult the Beattles or say they wont sell millions on iTS. However, I do not think that the idea of individual bands bringing “brand” to iTS is really more than a nice positive, not a difference maker for iTS business. Great for fans, but just a cog in the machine in terms of business.

  5. I probably won’t buy any new releases from UK artists, as an article in the NYTs yesterday indicated that these artists, including U2 funnel their royalties thru the Netherlands, which doesn’t tax them. What a bunch of hypocrites. They tell gov’ts to feed Africa with our tax dollars, and then they avoid the taxman, themselves. I’m sure the Beatles do the same.

  6. I don’t get it.

    Why are The Beattles important?

    If you’re a huge fan, you already own their CDs. Import them into iTunes.

    If you’re a casual fan (like myself) you own their album of #1 singles.

    Who is going to repurchase their music at a lower quality. What’s the payoff?

    The Beattles are not relevant because they can not make new music. Unless they have some great unreleased songs in a vault all these years, why should I care?

    As a marketing tool perhaps but I question the number of people who would buy a Beattles-branded ipod. Maybe bring back the signature ipods and offer several choices from all genres.

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