As per today's news, Apple should be afraid:
Afraid, that is, if not for the iPod (I know this isn't exactly new analysis). Think about this: Apple has sold and given away more than 250 millions songs on iTunes. Despite all the fuss over online music, 250 million songs at most brings in 250 million in revenue, and this is a stretch, as Apple is always giving away free songs. Based on the 10 million iPods sold, 250 million looks more like 25 songs per iPod. Of all the 55 songs I've downloaded from iTunes, about half of them were free. Considering that the typical iPod holds 5,000 songs, you'd understand that it's not the necessarily the legally downloaded music people care about when they buy into the iPod culture.
FULL DISCLOSURE: I've replaced my GTC stop loss order to activate at 65 with a one day order to activate at 75. I hope it doesn't go through.
READ: Reuters
Napster's promotion includes a Super Bowl television spot urging fans to compare the costs of spending $10,000 to buy and transfer 10,000 songs from Apple's iTunes store to an iPod, with the $15-per-month fee to carry songs from a catalog of over a million tracks on Napster-compatible players.Especially with the oncoming deluge of slick devices like the Creative Zen Micro supporting Napster To Go, how long can the craze last? Do people get iPods for the music (something that any player can provide) or for the branded experience?
Afraid, that is, if not for the iPod (I know this isn't exactly new analysis). Think about this: Apple has sold and given away more than 250 millions songs on iTunes. Despite all the fuss over online music, 250 million songs at most brings in 250 million in revenue, and this is a stretch, as Apple is always giving away free songs. Based on the 10 million iPods sold, 250 million looks more like 25 songs per iPod. Of all the 55 songs I've downloaded from iTunes, about half of them were free. Considering that the typical iPod holds 5,000 songs, you'd understand that it's not the necessarily the legally downloaded music people care about when they buy into the iPod culture.
FULL DISCLOSURE: I've replaced my GTC stop loss order to activate at 65 with a one day order to activate at 75. I hope it doesn't go through.
READ: Reuters

