Mac computers rock, but I’m no apple addict. When I talk on my iPhone 3G I feel my head melting like a $2 burrito, and even though iTunes launches every time I sync, I’ve never purchased music on iTunes. (I have downloaded apps.) The bottom line of this microwavable disclaimer is that I’m not your average music consumer.
Device Dependency
Apple continues to create a major dependence on iTunes through their mobile products—the iPod, iPhone, and iPad—and I don’t think that anything is going to “kill” iTunes without a war. iTunes is the 7-Eleven of media—it’s more convenient and expensive, but it’s closer to home. For many, the iTunes experience is ingrained behavior—a household name—and part of their daily commute so to speak.
7-Eleven is a major convenience store chain throughout N. America, Asia, and Australia. This one’s in Manhattan.
Photo: rhockens/Flickr
Generation Gap
The second huge advantage Apple has is the generation gap. Older people are more likely to have money to spend, and are less likely to adopt something new—especially if it’s less convenient. For Spotify to compete stateside, it will start through today’s youth. I love the Spotify concept, its mobility, and its adaptivity. They are smart to develop/test/improve their service in one location (Europe) before attempting to roll it out in another market (U.S.)—that’s business expansion 101. I hope that Spotify becomes a hit in the U.S. mainly for the sake of the music. Who wants an iTunes monopoly?
Spotify’s Game
Tuesday, Mark Mulligan from Forrester Research posted some great points on Spotify’s rise. He highlighted simplicity, social integration, and cloud-based infrastructure as factors that are rolling Spotify into an iTunes-plus-Last.fm experience:
Mark Mulligan: Spotify becomes a social experience. Spotify has always had a keen sense of how to coexist in the broader ecosystem rather than try to do everything itself (cf. integrating audio scrobbling). It has now taken that a step further with Facebook integration and relatively sophisticated sharing and interaction. Doing it in the context of Facebook simplifies the education process for users. [...] By blurring the distinction between local and remotely stored music, [Spotify] establishes the platform for a truly cloud-based music experience that goes far beyond a streaming music one.
(Spotify Puts The Crowd In The Cloud With Ambitious New Featuresets)
Apple Affinity
Apple products have strong affinity, and an army of enthusiasts drinking their Slurpees. Anyone looking to compete with them has to have an equal or greater affinity, and/or introduce something totally disruptive (which Spotify has done to a degree). Spotify has game, but so does Apple, who made a calculated move with last year’s Lala acquisition. One big thing to remember is that music has always been about the experience, and it always has been.
Cloud Contenders
Source: Compete.com. Pandora, for example, is excluded here, because it’s on a whole other grid—it blows the rest away in traffic. Look here get a visual of the bigger picture.
Apple Shuttle
Source: FinViz. Apple stock continues its flight to the moon.
