Apple
has announced that they will launch its European iTunes music download service
this summer, but they want it to be fully perfected rather than rush it
out. They aim to make it as good as
their US version
with no compromise on its ease of use, music selection or website
performance. Once up and running,
they expect it to run for many years.
While
iTunes in the US
has done exceptionally well, Apple actually relies on its iPod sales for profit
and uses its music service to promote the iPod. Apple had a 909% hike on
iPod sales this 1st quarter compared with the 1st quarter in 2003 and
expects its iPod mini to sell well in the EU once it is launched at the end
of the summer.
One
problem Apple faces with its European launch is how to price its music. In the
US, they have no
problem charging 99 cent per tune, but in Europe the tax
(VAT) charges vary quite a lot from country to country. Several other online music download
stores in Europe are doing fairly well but their song
prices are often over 50% more expensive than the typical 99 cent US
pricing. Quakester2000 submitted the
following news via our news
submit :
In the United States, the Apple sold 807,000 iPods in Read the full article here. |
While I
can see Apple having no problem starting up its itunes music store in Europe,
it will be interesting to see what they price their music and full albums
at. If they can offer similar
pricing to the
US, they will
have a good competitive advantage over the rest or at least encourage others to
drop their prices. 😉
Feel
free to discuss and read more about iTunes and other music download services on
our Music Downloads, P2P & Legal Issues
Forum.
Source: ZDNet UK MAC Software News
