12/26/2004

IPod SOV: iStill Don't Get iT

I still don't get iPod's share of voice (SOV). Check this (from Taipei Times):

My pick for gadget of the year would have to be Apple's iPod and iPod mini. It didn't come out this year, but by the beginning of December more than 9 million iPods were sold and most industry-watchers believed that number was going to far exceed 10 million by Christmas morning. What's more, these sleek devices have sparked a war among electronics manufacturers and rightfully had many of them rethinking the clunky space-junk design of many consumer electronics products. People are willing to pay more for wearable devices that don't look like something of Battlestar Galactica. Soon enough, we won't necessarily pay a premium for elegant design as manufacturers compete for the space in our pockets.

But the real revolution Apple has created isn't in the way we carry music, but the way we purchase it. Apple announced earlier this month that their iTunes music store customers have now downloaded over 200 million songs (They were at the 150 million-song mark in mid-October!). Some industry watchers have gone so far to say that if the company's star continues rising at its current rate, it may well sell 1 billion songs by the end of next year.

The company refuses to say how many users iTunes has, but the numbers are still significant. Apple has changed the way we buy music and, for musicians whose catalogs are available for download, significantly reduced the amount of money lost to pirating. My prediction is that, as bit rates gain speed, the next business to move to the Internet will be the neighborhood video store. (Hello, Blockbuster?)

Apple is generating GIANT SOV. Not only that, this author is attributing to Apple creation of the online music store. Say what? OTOH, I do believe that Blockbuster, like all video rental stores, are enjoying the sunset phase of their concept life cycle. Blockbuster and others must find a way to get into the online video distribution channel. If they don't they're toast.

See my earlier comments on the iPod: Here and here.



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