Word: 99â
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...dawn of a potentially huge industry: the sale of digital music online. A gaggle of companies has struggled for years to create such a market, hampered first by uncooperative record labels and then by free file-sharing alternatives. But change is coming fast. The overnight success of Apple's 99??-per-song iTunes Music Store--it sold its 10 millionth song this month--has awakened consumers to legal downloading options. Iconic acts like the Rolling Stones and the Eagles have begun allowing their songs to be sold online. With the digital-music industry expected to grow in revenues from...
...dollar, wagers Steve Jobs, CEO of Apple--or 99??, to be exact. When Apple introduced its pay-per-song service last spring, many doubted the computer maker could succeed where so many had failed. But the straightforward concept and uncomplicated design of iTunes immediately hit a chord with consumers, who downloaded 1 million songs in its debut week. The service's popularity underscored Jobs' argument: free file sharing can be a pain in the neck. Once you square yourself with breaking the law, there's also the virus-ridden software, the porn links, the cumbersome downloads. "We're all about...
...Napster 1.0 lay in its simplicity and comprehensive catalog of songs. No pay service has been able to sufficiently untangle the copyright mess to allow for a broad range of downloadable music. Apple's iTunes Music Store made a breakthrough in April by letting users download individual songs for 99?? a pop (as opposed to requiring a monthly subscription plan). RealNetworks' Rhapsody music service scored last week when it added some 500 Rolling Stones tracks to its 350,000-song catalog. Napster 2.0 promises 500,000 songs at launch--but that's still less selection than your average music store...
...eliminate monthly fees and let people burn songs to an unlimited number of CDs. You can even copy songs to the iPod portable music player. In the first 18 hours after the Music Store went live on April 28, buyers paid for an estimated 275,000 songs (for 99?? a track or about $10 an album) according to Billboard magazine's daily news service...
...successfully used to lure in penny-pinching customers and then sell them on costlier items. The problem with occasional promotions is that "you train customers to come only when there's a blue-light special," says Chris Clouser, global marketing officer at Burger King, which has launched a 99?? value menu, backed up by an offbeat, Candid Camera-esque ad campaign that shows bemused consumers reacting to a talking menu board...