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iTunes Associate Program?

Posted By Barry Ritholtz On October 21, 2003 @ 7:03 am In Finance,Music | Comments Disabled


Since we’ve been looking at the business models of so many streaming [1], peering [2] and music industry start ups [3], I thought it would be worthwhile to review a few of the more interesting aspects of Apple’s iTunes Music Store [4].

There are a number of very creative flourishes to the on line music store. The allowance account is a clever touch, enouraging parents to avoid RIAA litigation by giving their kids a few bucks a month download songs.

But the twist I really liked was the iTunes Link Maker [5]. This is an ingenious touch designed to tap into the peer rated aspect of P2P. Anyone with iTunes installed who clicks this link, will be taken to that song in the iTunes store. If you haven’t downloaded iTunes, the link takes you to Apple’s iTunes page. Sharp!

Here’s an example: Check out Jet’s Are You Gonna Be My Girl:     [6]

I smell an “iTune Music Store” associates program coming on. I wonder if Apple [7] can pull off the level of customer relationship that Amazon [8] has done so well.

Tapping into the viral aspect of music sharing shows that Apple has seriosuly considered this business model. I suspect that the music store will be a significant part of Apple’s model going forward. By morphing into a hybrid content/hardware company, they get out from under their limited legacy platform.

Of course, you cannot really discuss this intelligently until you’ve downloaded the program:     [9]

UPDATE: 10/21/03 2:37pm Apple’s iTunes Music Store Team responds to my email query:

“Thanks for your note. AT THIS TIME, we have no plans to create a revenue-sharing affiliate program for the iTunes Music Store.” (emphasis mine)

Best,

The iTunes Music Store Team


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2003/10/itunes-associate-program/

URLs in this post:

[1] streaming: http://irate.sourceforge.net/index.html

[2] peering: http://weedshare.com/

[3] start ups: http://www.magnatune.com/

[4] Apple’s iTunes Music Store: http://www.apple.com/itunes/

[5] iTunes Link Maker: http://phobos.apple.com/WebObjects/MZSearch.woa/wa/itmsLinkMaker

[6] Image: http://www.ritholtz.com/blogitms://ax.phobos.apple.com.edgesuite.net/WebObjects/MZStore.woa/69/wa/viewAlbum?selectedItemId=2480794&playListId=2480795

[7] Apple: http://www.apple.com/

[8] Amazon: http://www.amazon.com/gp/browse.html/ref=ass_po_/002-2267231-0348809?node=3309511/

[9] : http://www.apple.com/itunes/download/

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