The AppStore went live this morning, included in the iTunes 7.7 release available through Software Update.
Though this is surely to change over time, only a handful of applications are available in the Applications pane of iTunes this morning. More than 500 titles are included in the initial launch, according to a piece in the New York Times, in which Steve Jobs is quoted, saying of the AppStore, “”We are not trying to be business partners [with developers].” Instead, he said, the goal is to “sell more iPhones.”
Twenty-five percent of the first 500 applications at the store will be free, according to Jobs. Of the commercial applications, 90 percent will be sold for $9.99 or less, he said in the Times article, adding that a third of the first wave of applications will be games.
As of this morning, if you already know of a game or application that is or should be in the AppStore, it may be available through a search by name.
Here’s another screenshot showing apps in the layout. It should also be noted that the AppStore is currently available only for your browsing pleasure. Until the iPhone 2.0 firmware is released (perhaps later today?), you won’t be able to download any applications to your iPhone or iPod Touch.
More evidence of the primacy of digital downloads in the music distribution business: Rhapsody announced today it will offer DRM-free MP3 downloads in a $50 million effort to wrest market share from Apple’s iTunes, which earlier this year became the largest music retailer in the United States. As part of its marketing launch, the first 100,000 sign-ups to the store until July 4th get one album for free, according to Gizmodo.
Previously known for its subscription-based music streaming service, Rhapsody is partnering with Verizon Wireless to offer music downloads on mobile phones and will also be the music store back-end to MTV’s music Web sites and iLike, one of the most widely used music applications on the social networking site Facebook.
Describing their strategy as “Music Without Limits,” Rhapsody executives tacitly recognized the necessity of selling music that can be played on iPods, Apple’s industry-leading digital music player. Said company Vice President Neil Smith, “We’re no longer competing with the iPod, we’re embracing it.”
Since I first got an iPod, way back when Discmen roamed the earth, my fondest wish has been that I could use it as a quasi-remote control for my stereo. I could point it at a set of speakers, scroll through my music library, press the center button, and — BOOM! — music would pour forth.
Besides a few experiments with an iTrip, however, this has been wishful thinking. Until, perhaps, the next few weeks. MacRumors claims that the Read Me file for a developer release of the imminent iTunes 7.7 will finally make this dream real (well, provided you have a computer hooked to your stereo):
Use iTunes 7.7 to sync music, video, and more with iPhone 3G, and download applications from the iTunes Store exclusively designed for iPhone and iPod touch with software version 2.0 or later. Also use the new Remote application for iPhone or iPod touch to control iTunes playback from anywhere in your home — a free download from the App Store.
It’s pretty typical Apple to offer a few unannounced features on major operating system upgrades, but this one is incredibly welcome. Using the WiFi built into the iPhone and iPod Touch is a natural for this, and it’s much more convenient than using the (let’s face it) fairly inadequate Apple Remote. I just hope it will work with Front Row and AppleTV…
Brits (and Canadians) finally got to join the iTunes movie party this week, with Apple unleashing movie rentals and purchasing for the two territories. I’d actually been mulling over grabbing an Apple TV for a while (what with my ten-year-old DVD player starting to make strange buzzing and wheezing noises), but decided against it. Instead, I bought a cheap replacement DVD player and an iPod dock, and so I was initially feeling a little irked.
And then I looked at the prices and felt much better. In the UK, rental pricing initially doesn’t seem too awful at £2.49 for old stuff and £3.49 for shiny new films, which is mostly on a par with high-street rental outlets such as Blockbuster and DVD-by-mail companies. However, this is the realm of digital, and so there aren’t as many barriers to business regarding upkeep, location, shipping, and so on. A swift comparison with the US store sees that Apple’s making an extra $2 on library titles and $3 on new releases (the price of which almost doubles during a film’s trip across the Atlantic). Take into account taxes, and the extra profit is reduced, but still pretty hefty. On the plus side, you do at least get a 48-hour window to watch, which is a small added bonus.
However, it’s the purchase price-tags that really have me confused. They come in at £6.99 for library titles and £10.99 for new releases (the latter of which is $14.99—about £7.50—in the US). Even when you add on British taxes, this doesn’t look like a great deal, and with the usual raft of cheap outlets available (HMV, Play.com, Amazon UK), I fail to see how Apple will make a dent in the market with this pricing model.
Commentators are already saying this pricing has nothing to do with Apple (“Blame the movie studios!” “Apple is innocent!” “I wuv Apple and will GET YOU if you write bad things about Stevie!”), and how it’s more expensive to do business in the UK (blah, blah, blah), but this just reminds me of Adobe doubling CS3’s pricing when it goes across the Atlantic and offering a toothy grin in return.
With hardware, there’s now very little difference when taxes are taken into account, and I’m happy for Apple to mark things up a little in case Sterling tanks or the US Dollar rallies. In software, pricing is generally getting better (if you pretend CS3—something of an exception—doesn’t exist), and Apple again is gradually taking the piss less and less with each new release.
So why does the difference in pricing remain in media, when there’s no shipping, no printed artwork, and no shelf-space required? Apple always makes a point about thinking different, but in this case, it looks like the company’s done a quick price-check of its rivals and is thinking exactly the same.
What I’m going to say will likely disturb some folks, particularly in light of the fact that iTunes just became the #1 music retailer in the world this month. But work with me a little.
The online music revolution has not occurred, yet.
That’s it. No wild speculation, or tin-foil hat accusations, (and yet your characteristic sensationalism remains –ed)
That is the whole of the thing. While other industries have seen often dramatic effects on their business as a result of the internet, the music business is much like it was when my dad had a music store 20 years ago. Consumers still shop, they buy records, or singles they’re interested in. In short, online music has not been changed by the internet (save for the piracy aspect), it remains the same “Buy and Consume” metaphor it has always been.
In the spirit of disrupting future software patents by publishing prior art, after the break we’ll discuss in detail exactly how Apple could change all that.
The Hollywood writers’ strike from earlier this year has had some tragic consequences. For one, we never got to see this year’s Christmas episode of “The Office.” For another, even more reality TV was rushed into production.
But Apple is taking steps to remedy at least the most immediate problems that arose for customers of its iTunes Store. Anyone who purchased a Season Pass for a show that was disrupted by the strike will receive a refund for any episodes that won’t air, as well as credits good for the purchase of two additional TV episodes.
It’s an inevitable step, but the additional credits from Apple constitute a nice gesture that it didn’t need to make.
Though the Financial Times is without question a vastly more reliable source than most places that spawn rumors of Apple’s impending moves, I just can’t convince myself to buy into reports that Apple wants to create a monthly iTunes subscription plan or all-you-can eat music business model with the purchase of an iPod or iPhone. It isn’t their style
While denials from Steve Jobs are usually a good way to spot what he’s working on, this is an area where he has remained steadfast. He believes that people want to own their music, and I believe that he’s right. Sure, I love to sample music as much as anyone else, but the songs that I keep are really personal to me. Renting music just doesn’t work out. Even if Nokia is doing it, too.
Moreover, the monthly subscription business model is one that Apple hasn’t ever offered before to anyone. Not for movies, TV, or software. In fact, Apple’s only experience of recurring payments are with the iPhone’s service fees, which the company gets just a small slice of. There are far too many accounting headaches to resolve to make it worthwhile, and the record companies are angry at Apple. At Apple’s restaurant, they dine ala carte.
UPDATE: Guys, chill out. This problem wasn’t about my credit card or my ignorance of iTunes One Click. My problem was that the software didn’t notice the credit card issue until after I had entered my password three times. And, when I went to fix that problem, the store crashed.
And I say again: $13 on iTunes and $9 on Amazon. What possible incentive do I have to stand by iTunes? Amazon has no DRM, plays on all the devices I own and doesn’t demand that I agree to new terms of service every time I update its software. Apple is officially selling an inferior product at a higher price, and I’m not OK with that.
ORIGINAL POST: As I often do, I got a song stuck in my head just as I was getting ready for bed tonight – “Flux” by Bloc Party. Since I was updating my iPod shuffle anyway, I decided to pick up just the song from iTunes, never mind the album, “A Weekend in the City.” Popping over to the iTS, I tried to initiate a download. Apple had me log in to my AppleID, confirm my purchase, then sign off on new terms of services (which I didn’t read all the way through, but you’ll be shocked to learn that the music is more constrained than ever), log in again, confirm my purchase again, and only then announce that the credit card on file had expired, asking for another log in to change the information. I did so, and then the iTunes Store told me that an unexpected error.
I then went over to the Amazon MP3 store, entered my log-in once and got the whole Bloc Party album with one click. The album was not only totally DRM-free, it was $4 less than the iTunes price, and it downloaded incredibly fast, right into iTunes. And all it’s missing was a bonus music video that I don’t care about. There is a serious problem with the current iTunes user experience. Apple shouldn’t be offering me so many opportunities to stop my transactions. It’s a good way to lose business, as it did tonight. The current terms of service are tailored to record companies, not record fans. I’ve said it before, but I really believe it now: unless a song you’re looking for is iTunes-only, buy it from Amazon. You can use it on any device, and it’s totally seamless with Apple’s ecosystem, too. I’ll be very curious to see sales figures as Amazon’s library gets bigger over time…
One last thought: Is Apple planning to charge for most or all iPhone applications through the SDK? If legit freeware is kept off of the iPhone because Apple sees the opportunity to make more money, they’ve officially let the new content business get in the way of great software and hardware experiences. Fingers crossed, eh?
DVDJon has broken Apple’s FairPlay DRM scheme, but the current implementation leaves a little bit to be desired, as new contributor fitterhappier notes in his comprehensive survey of the project.
Mythical beast, adrenaline junkie and sometime digital revolutionary Jon Lech Johansen has fired the latest volley in the DRM wars, launching doubleTwist, software promising to make restrictions on purchased digital media a thing of the past. A grizzled veteran of the campaign against DRM, “DVD Jon” has been handing media companies defeat after defeat, nonchalantly toppling flimsy restriction schemes from DVD copy-protection to Windows Media to FairPlay, the encryption scheme “protecting” most purchases from Apple’s iTunes.
It’s not a great stretch to suggest that Johansen’s work has proved to the corporate world that DRM doesn’t work. Tech news outlets received the news of Jon’s calmly, reporting on the announcement with typical restraint and critical analysis. Oh my dear lord, no, they certainly did no such thing. DVD JON CREATES DRM KILLER, Slashdot reported. (“What, again?” responded thousands of readers the world over.) The truth is that doubleTwist is less a direct assault on DRM, like the Pickett’s Charge of Johansen’s PlayFair endeavor, than a preview of a DRM-free world. Bought your favorite album from iTunes and can’t wait to play it on your flavor of the month mobile phone? doubleTwist, it seems, can make it happen. Make the jump to read how.
Steve Jobs’ much-ballyhooed movie rental service looks all fine and dandy, but the question in my mind is: “How long will it be before the service offers a single decent movie to rent?”
At present, the movies on offer are even shittier than the local video store, or those available on-demand from my cable providor, Comcast, which utterly stinks.
It’d be depressing if all Apple offered was popcorn garbage. Surely the service is serving the wrong demographic. Early adopters, the kind that run out to buy an AppleTV box, are surely more interested in less mainstream fare. How long will it be before there’s some independent movies, classics, artsy fartsy foreign stuff, and genre titles?
BusinessWeek reports that sources claim Apple has a deal with Fox, Warner Bros., Paramount, and Lionsgate to allow sales, rentals or both through iTunes. If so, this could prove a huge boon for Apple. At last year’s All Things D conference, CEO Steve Jobs referred to its digital television device business as “a hobby.” Though promising an iPod for the living room, the AppleTV has been quite slow to catch on by Apple’s recent standards. That’s according to sales estimates from analysts and also anecdotal evidence: I’ve been to a lot of geeks’ houses in San Francisco and never seen a single AppleTV in the living room.
At this point, I’m ready to admit that Apple’s assumptions for the movie market were flat-out wrong — barely anyone wants to own movies in download format alone. I haven’t bought a single film myself, but there have been plenty of times when I would gladly rent a movie download — it’s faster than NetFlix and easier than walking down the street to Blockbuster. At the same time, for the movies I love, I want a tangible artifact to hold onto. I want to explore their special features and revisit favorite scenes. At the moment, Apple’s downloads are worse than what I can get at the store. But a rental? Heck, if it means staying on the coach, I’m in. Especially if it’s less than $3.
I’ve been pretty hard on NBC Universal President Jeff Zucker lately for his dramatic unwillingness to pursue a digital media strategy makes any sense. As reader Imajoebob pointed out yesterday, not every big media CEO is so clueless. Warner Music CEO Edgar Bronfman, speaking that the Mobile Asia Congress, is a revelation. Consider the following:
“We used to fool ourselves,’ he said. “We used to think our content was perfect just exactly as it was. We expected our business would remain blissfully unaffected even as the world of interactivity, constant connection and file sharing was exploding. And of course we were wrong. How were we wrong? By standing still or moving at a glacial pace, we inadvertently went to war with consumers by denying them what they wanted and could otherwise find and as a result of course, consumers won.”
Or this:
“For years now, Warner Music has been offering a choice to consumers at Apple’s iTunes store the option to purchase something more than just single tracks, which constitute the mainstay of that store’s sales,” he explained. “By packaging a full album into a bundle of music with ringtones, videos and other combinations and variation we found products that consumers demonstrably valued and were willing to purchase at premium prices. And guess what? We’ve sold tons of them. And with Apple’s co-operation to make discovering, accessing and purchasing these products even more seamless and intuitive, we’ll be offering many, many more of these products going forward.”
But first, let’s pause for a commercial. Do you like pasta? Do you like NBC? Well, you’re in luck, because Bertolli Pasta is delicious — and all over this application. Now, back to your previously scheduled post.
First, the good news: It totally plays NBC shows. Yep, it plays the like nobody’s business. All day long, and interrupted frequently by advertisements for Bertolli Frozen Pasta Dinners. The picture quality is quite decent, at least on par with current iTunes downloads. Bertolli.
Now, the bad news. How much time do you have? There are a lot of deficiencies right now, some of which NBC claims they will fix real soon, and a lot of which are deliberate cripplings. I’ll use bullets, because there’s a lot, most after the jump.
NBC Direct is actually a shell on top of Windows Media Player. Yep, not actually its own application. It’s built on OpenCASE, Extend Media’s super-locked down video platform. Slogan: “Automation, Ingestion, Encryption.” Yep, that’s how consumers think about video, all right.
NBC Direct has no support for Macs — but NBC recommends Boot Camp. How thoughtful! I have a PC from work, though, so I put it through its paces.
Bertolli pasta is just like real, homemade pasta — only frozen, and on NBC Direct! Yum-o-licious.
Attention, media company CEOs: You never come out looking good when you bash Apple for not sharing iPod revenue looking with you. Do makers of CD drives pay you royalties? Does my broken SPORTS Walkman owe you cash because it wouldn’t play music with out your content. The latest victim of this fallacy is NBC President Jeff Zucker, best known for taking the channel from No. 1 to No. 4 while head of programming. Variety reports his absurd comments at Syracuse University yesterday.
“Apple sold millions of dollars worth of hardware off the back of our content, and made a lot of money,” Zucker said. “They did not want to share in what they were making off the hardware or allow us to adjust pricing.”
How awful for you! I’m so sad that Apple didn’t want to provide you with revenue that you didn’t earn! Not to mention which, there is no one on the planet who bought an iPod just to watch videos on it, let alone just to watch NBC TV shows. And the vast majority of music gets sold through non-iTunes channels. The iTunes Store has contributed to iPod growth, but then again, “The Office” found an audience largely because of iTunes. Good luck with Hulu, Jeff.
Does anyone have sympathy for comments like these?
Like the Beatles, Led Zeppelin was one of the last great holdout bands refusing to release its catalog online — until now. <cite>The Complete Led Zeppelin </cite>, a digital box set of the band’s entire studio discography, is available for pre-order on iTunes: 165 tracks for $99, including a new greatest-hits anthology <cite>Mothership</cite>. (The entire package is being promoted with a reunion performance at London’s O2 Arena on November 26.)
Studio Albums:
Led Zeppelin I
Led Zeppelin II
Led Zeppelin II
Led Zeppelin IV
House Of The Holy
Physical Graffiti (Discs 1 & 2)
Presence
In Through The Out Door
Coda Live albums:
The Song Remains The Same (Discs 1 & 2)
BBC Sessions (Discs 1 & 2)
How The West Was Won (Discs 1, 2 & 3) Video:
Led Zeppelin With Keith Moon – Forum Los Angeles 77-06-23 (Rare)
Led Zeppelin – Royal Albert Hall 1970 Concert
DJ / Rupture, a New York “turntable soloist,” has an interesting rumination on this situation following a raid on Tuesday by British coppers of the huge music-sharing tracker, OiNK.
DJ / Rupture found his entire discography traded through the site, but concluded file-sharing is a positive: “The overall movement is towards more ways to share music & ideas with like-minded individuals on the internet,” he writes. “The way I see it, this can only be a good thing for music fans. And what musician is not first a music fan?”
The iTunes Store as the new cineplex? It’s not quite as crazy as it sounds, as the second prominent filmmaker in as many months today announced he would premiere a film exclusively through Apple’s iTunes. Edward Burns, director of “The Brothers McMullen” and “She’s the One,” announced in the New York Times that he would follow in the footsteps of Wes Anderson by releasing his movie “Purple Violets” exclusively through iTunes on Nov. 20.
“I don’t know that this is the model for the indie filmmaker who makes a movie with a cast of unknowns,” said Mr. Burns, who stars in his film with Debra Messing, Selma Blair and Patrick Wilson. “But there are plenty of people with nicer screening rooms in their basements now than at some of those art-house theaters. And I felt there’s got to be a better way to get these films to people who want to see them at their moment of highest awareness.”
Pundits are naturally taking this as a sign that Apple is finally trying to get serious about movies on iTunes. Though the company has succeeded wildly in selling music and TV shows through the service, few film studios have signed up thus far. This is Apple’s first-ever exclusive feature film deal. What do you think? Brilliant ploy or rip-off of Radiohead’s business model?
Apple has returned fire at Amazon’s Mp3 service today, introducing indie record labels to its DRM-free iTunes Plus service to only 99 cents per song. It is rumored that Apple will also drop the price of all other iTunes Plus tracks to 99 cents from $1.29.
Amazon MP3 only sells DRM-free MP3s, largely from Universal and EMI, but with indies in the mix, too. Amazon tracks cost $0.89 to $0.99 each. Apple began iTunes plus with only EMI on board, but doesn’t have Universal doing the DRM-free thing, and it’s quite unlikely they ever will. Universal is part of the same company as NBC, and we know how that worked out.
Even so, this reflexive decision by Apple is the first time I can remember the company following a competitor’s lead in the digital download market. This is more proof that Amazon’s offering is the first significant challenge Apple has faced since launching the iTunes Music Store more than three years ago.
Radiohead’s “In Rainbows,” released early this morning over the Internet just nine days after the band announced its completion, is out and completely brilliant. It’s also not for sale through any existing music distribution channel. It’s DRM-free, you can name your own price (no, really), and not one penny goes to the record companies. My thoughts on what that means are over here at my other blog.
What bothers me is that this is exactly the sort of consumer-friendly, content-creator friendly business Apple should be encouraging. Instead, they’re acting in the best interest of record companies, movie studios and TV networks. Kind of disappointing. Either way, the songs still play on my iPod, so away I go!
One of Apple’s messiest business dealings in recent years is the disintegration of its relationship with NBC. Though Steve Jobs routinely showed clips from “The Office” during his keynotes — and many think the iTunes Store saved the series — NBC pulled out of the iTunes universe in a snit this summer. And now a major NBC series that used to have a big tie-up with iTunes, “Heroes,” features a plot with a disappearing shipment of iPods. A subtle slap at Apple?
More curious, however, is the plotline involving Peter Petrelli (Milo Ventimiglia) and a missing shipment of iPods. Considering NBC Universal’s decision last month to pull its programs from iTunes over pricing issues, this struck us as more like product diss-ment. (Indeed, Heroes was among the most popular downloads at iTunes.)
Pure coincidence, said a Universal Media Studios representative. The episode was shot last June.
Broadcasting & Cable calls it “Product Displacement” and says it’s happening with Nissan, too. What do you think? Bizarre coincidence or subtle slap-back by NBC?
Apple has hit so many home runs in the iPod/iPhone/iTunes universe, that it can be easy to fall under the impression that all its ventures there are destined to succeed. This week brought a wake-up call in that regard, as Amazon launched its totally DRM-free MP3 Store, and the various TV networks made stronger moves into non-iTunes distribution channels. And NBC told Apple to go to hell as many ways as it knew how (though Chuck and Journeyman, produced by Warner and aired on NBC, do appear on the iTunes Store regardless of the current enmity) And, of course, movie studios are still largely avoiding iTunes like the plague.
Wired has a great run-down of what’s been happening with the TV companies lately as they try to figure out the whole digital distribution thing. Largely, they speak to a world without Apple. Which is interesting, if only because it’s pretty clear that video on an iPod or even an iPod is not as compelling as video on your TV or even your laptop. That means the content is much more platform-agnostic, and the iPod installed base is way less relevant. Hugh Hart has the story:
CBS execs nicknamed their team-and-stream syndication model Swing Town. Multiple partners? Absolutely. Downplaying the brand-centric hub site approach, CBS has partnered with sites including AOL, Joost, Sling Media, YouTube, MSNBC and Bebo. Viewership for CBS material subsequently skyrocketed from 24 million in May to 134 million in July, according to Multichannel News.
Patrick Keane, a vice president with CBS Interactive, says, “We syndicate our content to these sites because users are telling us that is where they’re going. We want our content in front of people wherever they are, whether that means Yahoo or AOL or YouTube or Bebo.”
It’s a fascinating landscape out there for InternetTV. Apple doesn’t have this thing nailed down just yet. The next few years are going to be wild.
If you follow Apple for long enough, you’ll see a million toothless iTunes and iPod killers, overhyped services and products destined for obscurity or the remainder table. But though Amazon’s new mp3 downloading service seems like another in this chain, I firmly believe this time is different. Amazon can actually deliver a superior digital music experience. Apple has its first legitimate challenger since the iTunes Store first launched. To hear why, click through.
NBC has struck the most recent blow in the on-going, extremely catty break-up between the media giant and Apple, announcing it in November it would enable consumers to download “many of its most popular programs” for free. Provided they watch embedded ads that can’t be removed. On their computers. Within seven days of the air-date. When they self-destruct. No, I’m not kidding. As BuzzSugar puts it:
The video will only work for a week after the episodes are broadcast.
Only a limited number of shows will be available at the start, but at least they’re generally good ones: “Heroes,” “The Office,” “Life,” “Bionic Woman,” “30 Rock,” “Friday Night Lights,” “Late Night with Conan O’Brien” and “The Tonight Show with Jay Leno.”
The content won’t be available to Mac users (um, take that, Apple?)
Now that’s got to have Apple quaking in its boots — the return of the original DiVX technology plan! Best of all, it’s Windows-only! So great! NBC does claim that its downloads will soon be compatible with iPods and Macs, and that it will eventually offer ad-free downloads that will be transferrable to other devices, but not until mid-2008.
Still, this is a fascinating twist. I can’t wait to see what comes next. The video download market is nowhere near as locked up as music is.
(Non-Variety translation: Rumor has it that Apple wants to change the price of iTunes TV downloads to 99 cents.)
I’ve been thinking and talking a lot about why Apple would want to force the networks to make less money per download on TV shows, and the best answer I’ve heard comes from my fiancee: Apple believes cheaper downloads will lead to more sampling, and therefore greater popularity for newer shows.
Think about it. You’ve heard great things about “How I Met Your Mother,” but you don’t want to spend the time or money to get the first DVD on NetFlix. The whole series isn’t available through On-Demand cable, and you’re definitely not sold enough to buy the box. With a full iTunes archive, you could try out the pilot for a buck. At $2, it feels too much like you’re over-paying for a set you might want later, as sets average out to about $2 per episode. At a dollar, it’s a product sample. For $2, you’ve already invested.
The real competition for iTunes downloads isn’t DVD box sets — it’s cable On Demand service. That’s what hasn’t clicked until now. The TV networks, because many of them also own record companies, can only view their product compared to song prices. But it’s an artificial comparison. Which will you play more times: A hot song you love or an hour-long episode of Heroes? If anything, songs should cost more than TV shows.
For myself, I would buy a lot more shows on iTunes if the price goes down — especially for series I don’t watch or from channels I don’t subscribe to. The more I think about it, the more I like it. It’s incredibly consumer-focused, but also focused on growing the audiences of series with niche followings. It means more revenue than On-Demand for the networks, as well as possible boosts for DVD season box sets.
What do you think, how would your iTunes habits change if the TV prices drop?
