Monday, September 10, 2007

 

New iPod Business Models

Last week's announcement about new iPods should not concentrate on the new devices only. What was also introduced was Apple's entry into both the ring tone business and software distribution business. As Steve Jobs indicated, 600,000 copies of iTunes has been distributed and now today's announcement of 1 million iPhones sold prove Apple's critical mass and credibility. Ring tones are a multi-billion dollar industry worldwide and games and software distribution is also in the billions. I planned on developing a custom ringtone feature within our ISAT Communications Center but could not navigate the licensing and formats.

Regardless another business model to review is the idea that Starbucks becomes a music destination. The iPhone and iPod Touch partnership provides in store commerce with specific store by store demographics. They become a 14,000 outlet radio station in 42 countries.

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