“One of the business tenets that has led to Apple’s incredible success is that the company isn’t afraid to cannibalize its own products,” Yoni Heisler writes for BGR. “If anything, Apple tends to embrace such scenarios, with Tim Cook once explaining that Apple views ‘cannibalization as a huge opportunity.'”
“With that said, one can only hope that Apple will take steps to actively cannibalize its own iTunes business,” Heisler writes. “If they don’t, some other company will, and it may happen sooner than anyone thinks.”
“The writing on the wall couldn’t be any clearer: streaming music, whether it be ad-supported or via a monthly subscription service, is how most people prefer to listen to music. Steve Jobs’ old adage about how consumers prefer to own their music simply isn’t true anymore,” Heisler writes. “Apple, of course, isn’t oblivious to this phenomenon. After all, the company did buy Beats for $3 billion last year and has plans to introduce a revamped streaming service dubbed Apple Music next week at WWDC. That’s all well and good, but if Apple wants to remain relevant in the music business, it will have to actively try and cannibalize an iTunes business that has performed dutifully for over 12 years now.”
Read more in the full article here.
MacDailyNews Take: Obviously, Apple Music will take download sales off the table, but the idea of owning music isn’t going to go away for certain people, and older demographic, to be sure, but also a more affluent one. That said: $120 per year is roughly 100 tracks purchased per year (roughly 8 albums per year). Buy 100 tracks or 8 albums per year or have access to everything for the same price? When presented like that, a lot of people are going to sign up for Apple Music.
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