Apple’s revolutionary iTunes turns 10, faces new challenges

“When Apple launched its iTunes music store a decade ago amid the ashes of Napster, the music industry — reeling from the effects of online piracy — was anxious to see how the new music service would shake out,” Nekesa Mumbi Moody reports for The Associated Press. “‘The sky was falling, and iTunes provided a place where we were going to monetize music and in theory stem the tide of piracy. So, it was certainly a solution for the time,’ said Michael McDonald, who co-founded ATO Records with Dave Matthews and whose Mick Management roster includes John Mayer and Ray LaMontagne.”

“The iTunes music store became much more than a solution; it changed how we consume music and access entertainment,” Moody reports. “It’s not only music’s biggest retailer, it also dominates the digital video market, capturing 67 percent of the TV show sale market and 65 percent of the movie sale market, according to information company NPD group. Its apps are the most profitable, it has expanded to books and magazines, and it is now available in 119 countries. This week, iTunes posted a record $2.4 billion in revenue in first-quarter earnings.”

Moody reports, “But as iTunes celebrates its 10-year mark Sunday, it faces renewed scrutiny on how it will continue to dominate in the next decade — or whether it can. With competition from subscription services like Spotify and other services like Amazon.com, Netflix, Hulu and others, iTunes will likely need to reinvent itself to remain at the top of the digital entertainment perch… McDonald believes subscription services may become the standard… But he doesn’t count Apple out in that future: ‘It may be that Apple and iTunes are going to create the best user space to own that space as well.'”

Read more in the full article here.

MacDailyNews Take: Apple’s iTunes Store. One of history’s most ruthless serial killers.

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8 Comments

  1. Apple had a great product in iTunes before they kept reducing it’s functionality in an effort to consumerize it. It is now practically useless to me b/c it’s search features work poorly with 200K songs and 2K movies and tv shows. I will use it as a central bank but am actively looking for a supplement for playlist creation, etc…

    Apple, fix your searching feature, you had it right in an update, now it sucks again. Jumping from Category to Category is molasses-slow.

    Note that I am using a maxed out new Mac Mini connected to Thunderbolt 4TB LaCie hard drive which houses my iTunes library.

    It’s frustrating to see Apple fail again and again since Steve died. Let’s hope Jony fixes the UI problem and Apple breaks some eggs with new products!

    1. 200k songs and 2K TV shows and movies, huh?
      Wow, a pretty average, run-of-the-mill iTunes user, then!
      You are at the extreme end of the sort of people who use iTunes, I have 160k, approx, but no movies or TV shows, and a mate has around 200k, but I know of no-one else in my extended circle of friends or aquaintancies who have anything like that amount.
      The only thing I want replaced in iTunes is the ability to have two or more windows open at once, for setting up playlists, etc., although I’ve found a workaround using my iPad or phone, I want this feature replaced in the next iteration.
      Anyone know Jonny Ive’s email address?

  2. iTunes works well on IOS devices, but on my MBP the latest version seems to be a poorly conceived backgrade.

    Compared to the old iTunes that still runs on my home-based 5-year old 15″ MBP, the version on my current 13″ model is slow, plain and dull.

    It seems in almost every way a shadow of its former self. Even the coloured buttons have lost their functionality.

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