All About the Accessories

iTunes passed Realplayer in unique users near mid-2007. The higher
growth rate of iTunes propelled it past RealPlayer for the first time
in April of 2007. Among the four major streaming media players, only
iTunes had a positive growth rate over the past year. Among active
Internet users in the US, broadband increased to 86.8% in December 2007.

Apple’s iTunes player passed
RealPlayer in unique users in 2007 (see Figure 1). iTunes is the only
player to show a positive growth rate over the past year, growing by
26.8% from Dec. 2006 to Dec. 2007 (see Table 1). QuickTime usage fell
8.6%, RealPlayer fell 17.5%, and Windows Media Player was essentially
flat over the past year. Note that the growth trend lines show a more
accurate picture without the monthly fluctuations. Both QuickTime and
RealPlayer were essentially flat, while Windows Media Player grew
slightly. Only iTunes showed a significant positive growth rate.

Technorati Tags: apple, itunes, realplayer

At CES 2008 Monday afternoon, Variety Magazine hosted a panel discussion and Q&A session with representatives from some of today’s biggest content providers. Their discussion was the future of content delivery, and the big question was this: How will you make money from it?

Featured on the panel were Albert Cheng, executive vice president of digital media for Disney/ABC TV group; Dan Fawcett, President of Fox Entertainment Group’s Digital Media arm; newly-inaugurated president of Warner Bros. Digital Distribution Thomas Gewecke; and Tom Lesinski, president of Paramount Pictures Digital Entertainment. The panel was moderated by Variety’s president and publisher Charlie Koones.

The panelists in today’s discussion hold slightly differing opinions on how to monetize their content, yet they all agree upon one point: Apple and iTunes are a positive force in the digital marketplace.

Technorati Tags: itunes, apple, movies

A few months ago I was at a big family dinner at Capsouto Frères, a fancy French bistro in Tribeca. One of the partygoers runs a small computer and electronics shop and considers himself an authority on computers and consumer electronics. His opinions on Apple (AAPL) and its products bug me (to put it simply).

I held my tongue as he chattered on about all the supposedly fascinating things he was doing with his Microsoft (MSFT) Windows machines. We barely know each other, and he had no idea what I write about for a living. But when the subject turned to the iPod, he gave me an opening I couldn’t resist. “Oh those iPods,” he said dismissively. “People are always bringing them into the shop with complaints, and they don’t even play standard MP3 songs like all the others.”

“Absolutely not true,” I said, breaking my silence. “I don’t know where you got that idea, but it’s patently false.”
A Popular Misconception

His convoluted explanation, as best I could understand it, was that he thought iPods played some “Apple-only” format, which he called ACC (it’s actually AAC, as in Advanced Audio Coding, and it isn’t “Apple-only”). I explained that the iPod plays every major digital audio format save two, Windows Media Audio (WMA) and Ogg Vorbis.

He had somehow gotten it into his head that all online music stores, save iTunes, sell MP3s on which there are no copy restrictions. Noting that he was vastly misinformed, I told him that in in fact no online music store sells unprotected MP3s—the exception being eMusic.com—while Napster (NAPS) and Yahoo! Music (YHOO), for instance, sell heavily protected WMA files, which are compatible with a wide range of portable players, but not the iPod. Where he got his set of ideas, I don’t know.

Technorati Tags: apple, itunes

EMI Group PLC said Sunday it planned to unveil “an exciting new digital offering” with computer company Apple Inc., raising expectations that The Beatles’ music catalog is about to be made available through Apple’s iTunes online music store. EMI said it would hold a news conference Monday at its London headquarters with its chief executive, Eric Nicoli, and Apple boss Steve Jobs “and a special live performance.”

EMI has been The Beatles’ record label since the early 1960s. The Beatles have so far been the most prominent holdout from iTunes and other online music services, and Apple’s overtures to put the music online were stymied by a long-running trademark dispute with The Beatles’ commercial guardian, Apple Corps. Ltd.

In February, Apple Inc. and Apple Corps resolved their legal feud over use of the apple logo and name, paving the way for an agreement for online access to the Fab Four’s songs.

Technorati Tags: apple, beatles, itunes

Apple today announced Complete My Album, a groundbreaking new iTunes service that allows customers to turn their individual tracks into a complete album at a reduced price by giving them a full 99 cent credit for every track they have previously purchased from that album.

“Music fans can now round out their music collections by upgrading their singles into complete albums with just one click, and get full credit for those songs they have previously purchased from iTunes,” said Eddy Cue, Apple’s vice president of iTunes. “Complete My Album is a wonderful new way that iTunes helps customers grow and enjoy their music collections.”

“iTunes continues to revolutionize the digital music industry by offering music fans innovative ways to explore and enjoy new music,” said Thomas Hesse, president, Global Digital Business and US Sales, Sony BMG Music Entertainment. “With Complete My Album, iTunes is giving music fans the best of both worlds—the ability to discover great new music by buying just the single and a credit toward the purchase of the complete album.”

Complete My Album offers customers up to 180 days after first purchasing individual songs from any qualifying album to purchase the rest of that album at a reduced price. When users buy any song on iTunes the corresponding album will immediately appear on their personalized Complete My Album page with the reduced price listed. For example, a user who’s already purchased three 99 cent singles and decides to buy the corresponding $9.99 album would be able to download the remaining songs to complete the album for just $7.02, without having to buy the singles again.

Technorati Tags: apple, itunes, apple+itunes

Starz Entertainment, LLC, today filed suit against Buena Vista Television (BVT), a subsidiary of The Walt Disney Co., for copyright infringement and breach of contract. Starz filed the suit in the US District Court for the Central District of California because Disney recently began to sell for transmission over the Internet the same movies that Disney licensed exclusively to Starz.
Under the terms of the 1993 and 1999 Starz-BVT agreements, extended by BVT in 2005, Disney is prohibited from selling its films for transmission over the Internet prior to Starz’s first exclusive license period and during all of Starz’s exclusive license periods.
Despite this prohibition, the suit notes that Disney has “begun to sell over the Internet via services like Apple Computer Corp.’s iTunes and (Wal- Mart Corp’s) Walmart.com the very same Disney films licensed to Starz.” Such conduct, the suit adds, constitutes “a blatant breach” of the licensing agreements between BVT and Starz. The suit notes that over the life of the contract Starz has paid “over one billion dollars” for periods of exclusive rights to the films.
Starz Entertainment Chief Executive Officer and Chairman Robert B. Clasen said, “Disney has been a great partner. We hope to continue our relationship. But our agreements clearly prohibit them from selling their movies by electronic download over the Internet while they are exclusive to Starz. If Disney is permitted to violate our contract in this manner, it will undermine the integrity of copyright in general which is a cornerstone of our industry.”

Technorati Tags: itunes, apple, movies, starz, disney