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Group 06-From Lecture 06 Member 02

iTunes B2C SUCCESS STORY&CONTROVERSIAL ISSUES. Group 06-From Lecture 06 Member 02. Presented by : Xu Wei. CONTENTS. Introduction Features & Restrictions Catalog Pricing Model Electronic Payment Options Market Share Controversial Issues Final Thoughts. Introduction.

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Group 06-From Lecture 06 Member 02

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  1. iTunes B2C SUCCESS STORY&CONTROVERSIAL ISSUES Group 06-From Lecture 06 Member 02 Presented by: Xu Wei

  2. CONTENTS Introduction Features & Restrictions Catalog Pricing Model Electronic Payment Options Market Share Controversial Issues Final Thoughts

  3. Introduction iTunes Store Software Based Online Digital Media Store Operated by Apple Inc Apple’s Idea • Virtual Store Where People Can Buy and Download Digital Media by One-Click Purchasing. • Business model: B2C and B2B When Started ? • 28 April 2003 - As iTunes Music Stores with 200,000 items to purchase

  4. FEATURES • First launched iTunes Digital Music service - it had already signed deals with major record labels: Universal Music Group (UMG), EMI, Warner, Sony, BMG • One-Click purchasing • At Macworld 2009, Apple issued a software update that allowed 3G and EDGE users to access the store

  5. RESTRICTIONS • Developed Own Digital Rights Management (DRM) Technology called FairPlay, Only compatible with iPod, iPhone and a handful of other digital music players • For consumers, DRM places on purchased media (including video) is a bone of contention • In Jan 2009, DRM has been removed from 80% of the entire music catalog in United States. However, TV shows, audiobooks and movies still are FairPlay protected

  6. Catalog

  7. Pricing Model

  8. Electronic Payment Options

  9. Market Shares

  10. CONTROVERSIAL • DRM limits the numbers of devices purchased songs can be played on. • Contract entitles Apple to change the terms of contract at any time without notice, including the selection of players or software that must be used for iTunes files, and also the number of times a customer can change or copy already purchased files. • The legal relationship between Apple and customers is regulated by English Contract Law worldwide. • iTunes has no responsibility regarding damage to consumer’s computer due to software errors.

  11. CONTROVERSIAL • Security of iTunes • The hacking iTunes Store Account • One single Apple ID is able to access to every account connected to user’s devices – iPhone, iPad • The hacking highlights the problem of balancing security and convenience - Considering the iCloud service

  12. Final Thoughts

  13. An Iconic name will always be remembered. • It has cleverly used its hardware(iPod, iPhone, iPad) to drive customers to its iTunes Stores • Ability to get product in front of and into the hands of customers. • One click purchasing is absolutely the key to success for the iTunes Store. • Apple needs to make sure it keeps up with present and future trends to beat off the competition, and maintain its dominance.

  14. Thank You !!!

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