Friday, April 28, 2006
samsung and apple partnership
nokia digital music phone
legal issues with artist royalties
explosive growth of downloads in music sales, 2004 - 2.3%, 2005 - 7.3% market share
"MP3 technology helped boost the audio and accessories markets in 2005. With the introduction of video playback capability, MP3 player sales surged 200 percent in 2005 to $3 billion. Trends in 2006 should be no different," he added.
Let’s spend more time looking at economic theory’s non-comprehension of the iPod and user experience. The latest instant-classic example? Free Napster. A student survey at the University of Rochester found that even when students have Napster service for free apparently they still choose the iTunes Music Store—at 99 cents a track. How many, do you ask? Yes, that’s right. 70 percent. The survey also found no students in the sample who had purchased songs from Napster to put in their permanent collection; for that, they turned to Apple. So much for brand loyalty. And, yes, it defies Economics 101. Why would you use Napster’s service but then buy the tracks outright from Apple? Oh, that’s right, the part of Econ they always forget, that people won’t pay for substandard products.
complexity <> trust
apple dominates but could lose, to who?
ipod restrictions, ties between layers.
In a free market, that wouldn't be so bad. Manufacturers of competing MP3 players, such as Sony, Creative and Samsung, could provide software to automatically convert the music to a compatible format. But that would be illegal, thanks to a little-known law called the Digital Millennium Copyright Act, which Congress passed in 1998.
The DMCA was billed as an antipiracy measure. It prohibits anyone from "circumventing" a copy protection scheme such as that used to scramble songs from the iTunes store, or from creating software to do so. It was hoped that those restrictions would prevent hackers from unscrambling music or movies and uploading them to the Internet.