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Apple's Devices and Subscription Strategy Missing in Action
BOSTON--Jan. 31, 2006-- Following the new Verizon Wireless V Cast Music Service
launch, Strategy Analytics, published a new prospectus for the digital music industry.
With estimates that sales of digital music (online music plus mobile music and
ring tones) within Western Europe and North America accounted for 13.9 percent
of total consumer spending on music last year, Strategy Analytics projects that
by 2010 more than $8.2 billion worth of music will be delivered via digital platforms
in the same regions, accounting for almost 30 percent of total music sales.
Additionally, Strategy Analytics predicts that Apple's dominance of the online
music space will come under increasing pressure as competitors target the shortcomings
of Apple's iTunes Music Store (ITMS).
Senior Analyst, Martin Olausson, points out, "As a strategy to bring it into
mobile, Apple's partnership with Motorola has failed. Its lack of a subscription
payment model as well as the fact that it is currently limited to iPod music players,
will increasingly put Apple?? at a disadvantage to services such as V Cast Music.
The speed with which sales of music player enabled mobile phones will overtake
dedicated music players will accelerate this trend."
Philip Taylor, Director of the Strategy Analytics Wireless Internet Applications
service, states, "We believe that Apple's experience with Motorola rules out any
quick launch of an iPod with built in cellular radio, and that Apple will continue
to build resources towards bringing a wireless enabled product to market in 24
to 36 months." He further notes, "As a result, Microsoft will gain strength as
the most viable immediate alternative for manufacturers and service providers
seeking to gain share for themselves."
Please see www.strategyanalytics.com/press/PR00253.htm for charts of: "Annual Music Revenue by Region & Type" as well as "Global
Mobile Phone Music Player Shipments Vs. Dedicated Players."
About Strategy Analytics
Strategy Analytics, Inc. - a global research and consulting firm - provides timely
insights and strategic business solutions to companies operating at the convergence
of information, communications and entertainment technologies. For more information,
see www.strategyanalytics.com
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