Evolution of technology>portability and experience
Change in listening music format- CD> mp3> storage
-Music players, fashion accessories
-Mp3- what offered> file sharing> vertical integration> cassettes (1960’s) >>Sony>> synergy CD Phillips+Sony
Gramophone: Private listening
The cassette: Portability-boom boxes
CD- more data storage, better quality, smaller devices
History of the Ipod:
-Steve Jobs- director of Ipod
-”Music was the perfect synthesis for apple”
-Apple focused on key brand lines
-Apple became fashionable to youth culture
-Development of Mp3- Sean Fanning, college
-60 million users world wide, student “napster” > file sharing
-Napster public enemy number one to the record industry
-Trying to shut it down
-January 2007, launch of Itunes
-Music is part of DNA says Steve Jobs
-As the designs went on he wanted less buttons on the ipod
-Problems that the battery wasn’t good enough>lasting 3 hours
-October 23rd 2001> latest creating> IPOD
-Napster got sued, 9/11 happened 1 month before the release of the ipod> bad timing> no one wanted one
-Mac’s at this point cost $400
-Vertical integration with Itunes
-Cult of ipod, loyal users-grasped with enthusiasm,
-White headphones matched the white player, so they stood out as the only player with white headphones
-Those with them were seen as cool, everyone wanted it
-This itself was advertising the ipod as everyone knew what it was via the headphones
-$10,000,000 mark
-Apple media company> 1 year=$1,000,000
-Selling digital music> online music store
-Recording industry> selling songs
-1 song=$1
April 28th 2003, LAUNCH OF THE ITUNES STORE
-Over 200,000 songs> 5 major record labels
-First 5 days over 1 million songs sold> reinforcing vertical integration
-First 18 months 700,00 Ipod’s sold> niche audiences only> only worked if owned a Mac
-April 28th 2003> 3rd generation of the Ipod
-Full PC compatibility
-December 2004 > 200 million songs sold
-6 million Ipod’s sold
-October 2005> 5th generation of Ipod> video playback> CONVERGENCE
-2005> 4 new Ipod’s
-2005> 32 million Ipod’s> 1 sold every second
-Quadrupled over 3 years
-Ipod owned 75% of the market ownership of Mp3 in the USA
-September 2006 Itunes sold its 1.5 billionth song>3 million songs everyday
-5th biggest music retailer over taking some huge record labels such as tower records
- 5 years over the 70 millionth sale> 40% of the total revenue
- However not overtaking CD’s
-125,000 selling movies
-80% of Microsoft own Ipod’s
-On the website people were taking there time out to make home movies
-People coming up with the next generation of ipod> such love for this one device
-Used in some universities> educational tool> given free to freshman so everyone knew which were the freshman
-Over 3000 accessories for this one device> cases, docking stations etc