Archive | February, 2006

The Daily Loper — February 28, 2006

Todays links of interest:

Apple’s Digital Convergence Strategy Comes Into Focus

“It took McDonalds 8 years to sell a billion burgers”
– Steve Jobs on the success of iTunes

It’s hard to say exactly what the folks at Apple were thinking when they promoted today’s special event as the announcement of some “fun” new products. For weeks I’ve been convinced that Apple was on the verge of announcing an extension to the current line of iPod socks. Cashmere, perhaps.

For any other computer company todays announcements would be minor at best. Hardly worthy of a special event drawing international media attention, not to mention dozens of live bloggers dutifully typing every word Steve Jobs uttered (has any executive ever had a larger pool of personal stenographers?).

News Flash — Apple Reinvents The Boombox

Apple’s “fun” product announcement is currently in progress. Initial indications are that Jobs and Co. are making taking next step toward making the Mac the platform of choice in the era of digital entertainment.

There’s a new Intel powered Mac Mini. Jobs is dropping strong hints that the device is designed to connect to your television.

There’s also a new iPod powered Boombox. Complete with 6 D cell batteries (yes, I said D cell batteries).

Developing . . . .

Following “Bubble” through the Window

Just a few scant weeks after Steven Soderbergh’s “Bubble” was available simultaneously to theatres, cable and video, here comes another major test for what they are calling the “day and date” strategy of multi-platform releasing.   IFC and Comcast have announced a deal to release several indie films this year to both their theatres and cable on-demand services on the same day.

“Bubble” could have been written-off as an anomaly, a confluence of a maverick director and a maverick eccentric billionaire (Mark Cuban), but this, my friend, this is a trend.

And it will work because indie film people who live in areas who that don’t have a lot of theatres that show indie film, but happen to have Comcast cable (like, say, in Fresno, California) can watch the first-run movies that they’ve been reading about on various film sites and not have to wait months for the DVD to show up.

This could be the same boon to indie film that iTunes and eMusic are to indie rock.


1 Billion Served, Another Billion Imminent

As promised, Medialoper team coverage of the 1 billionth iTune sold continues. Today, we look at the economics of the iTunes store. Conventional wisdom suggests that margins on the songs are so low that the real moneymaker for Apple in its iTunes experiment is the iPod.

That, of course, suggests that making money on volume is quaint concept. Apple is selling approximately three million songs a day, meaning the second billion will be reached much faster than the first billion. Unless things go horribly wrong, the third billion will be even faster. 83% of legally downloadable music is sold via the iTunes music store.

Let’s pause for a moment and ask the first obvious question: why in the world would anyone not be cutting a deal with Apple right now? Why would anyone be putting all their eggs in Microsoft’s basket? Yes, two questions. If you want to sell your music on the Internet, wouldn’t it be smart to go where the money is? You don’t have to be exclusive — make deals with everyone — but be smart.