iTunes Strengthens Its Lead in Music Sales

According to Billboard, iTunes’ share of all US music sales for 2009 was at 26%, up more than 5% from 2008. This gives it an even bigger lead over the number 2 seller, Walmart (iTunes knocked Walmart out of the top spot in 2008). Walmart’s sales are now at 12.5%, down from 15%. Walmart and Best Buy combined don’t add up to iTunes’ share.

One factor in this, obviously, is the shift away from physical formats like CDs. In 2009, all digital sales accounted for 50.7% of music sales (up from 42.5% in 2008). If the other music download companies don’t get a major share of new accounts, Apple will completely dominate the music industry like no one else ever has. In a few more years digital sales will be the sales that matter, and iTunes accounts for more of those than all other companies combined.

I Want it NOW! – Mixr

When Apple announced the iPad, a lot of people were horribly disappointed. Most of my friends tore their hair out and screamed, “It’s just an iPod Touch with a huge screen! The rumor sites promised me a 17GHz, 35 inch iMac that fits in my pocket – with 5 cameras, a 26 hour battery, and a built-in printer that spits out pure chocolate-covered awesomeness. Apple sucks!” or something similar. I saw it and said “An iPod Touch with a screen that’s 4 times as big? Sweet! I can’t wait to see what music apps come out for that!”

Mixr is, hopefully, the first of many iPad music apps that aren’t just basically a higher resolution version of existing iPhone/iPod Touch apps. It begins to show what’s really possible on Apple’s new platform.

Mixrs turntables look and feel just like the real thing. To mix your music, all you have to do is touch the vinyl records with your fingers. You can play it, stop it, run it backwards and even control the pitch and scratch! To manipulate the sound, simply rotate the vinyl with your fingers, it’s that easy!

[From ipadmixr.com]

OK, I don’t quite believe them when they say it FEELS real, but it does look great. In addition to the turntables, Mixr has a 3D “DJ Crate” view for your music library, the ability to record your mixes, and a variety of effects.

Even though it’s bound to be used primarily by douchebags at college parties, it’s still pretty cool.

Microsoft Knew Apple “Smoked” Them With iTunes

Internal Microsoft e-mails in 2003 show that they knew Apple had beaten them to the punch in digital music services with the release of iTunes.

—– Original Message —–
From: Bill Gates
Sent: Wed 4/30/2003 10:46 PM
To: Amir Majidimehr; Dave Fester
Cc: Will Poole; Christopher Payne; Yusuf Mehdi; David Cole; Hank Vigil
Subject: Apple’s Jobs again.., and time to have a great Windows download service…

Steve Jobs ability to focus in on a few things that count, get people who get user interface right and market things as revolutionary are amazing things.

This time somehow he has applied his talents in getting a better Licensing deal than anyone else has gotten for music.

This is very strange to me. The music companies own operations offer a service that is truly unfriendly to the user and has been reviewed that way consistently.

Somehow they decide to give Apple the ability to do something pretty good.

I remember discussing EMusic and us saying that model was better than subscription because you would know what you are getting.

With the subscription who can promise you that the cool new stuff you want (or old stuff) will be there?

I am not saying this strangeness means we messed up – at least if we did so did Real and Pressplay and Musicnet and basically everyone else.

Now that Jobs has done it we need to move fast to get something where the UI and Rights are as good.

I am not sure whether we should do this through one of these JVs or not. I am not sure what the problems are.

However I think we need some plan to prove that even though Jobs has us a bit flat footed again we move quick and both match and do stuff better.

I’m sure people have a lot of thoughts on this. If the plan is clear no meeting is needed. I want to make sure we are coordinated between Windows DMD, MSN and other groups.

…. Original Message ….
From: Jim Allchin
Sent: Wednesday, April 30, 2003 4:58 PM
To: Amir Majidimehr; Chris Jones (WINDOWS); Will Poole; David Cole
Subject: Apple’s music store

1. How did they get the music companies to go along?

2. We were smoked.

jim

Via Groklaw

Labels Looking to Spur Full Album Downloads with New Format

CD Album DownloadTimes Online reports that Sony, Warner, Universal and EMI are about to release a new album download format that will include digital versions of all the materials that normally accompany a physical CD – lyrics, artwork, even video. The aim is to expand the sales of complete albums rather than individual songs. CMX, as the format is currently being called, will be launched in November – but only accompanying a handful of titles at the start.

Not surprisingly Apple was asked to support the format as a part of the iTunes Music Store, but declined. Instead the company is apparently opting to create its own format, codenamed Cocktail. Although it would be nice to have a standardized format agreed upon by all the major players, at this point in time I tend to think that any format supported by iTunes/iPod is going to end up being the the only format that matters – and since Apple is the only company mentioned here who has stated a preference for open, non-protected formats, that’s probably a good thing.