Digital Home Thoughts: Digital Music King May Lose Crown

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Monday, August 22, 2005

Digital Music King May Lose Crown

Posted by James Fee in "CONTENT" @ 03:30 PM

http://www.cnn.com/2005/TECH/ptech/08/22/music.apple.reut/index.html

"It's inevitable that over time their market share declines," Piper Jaffray senior research analyst Gene Munster says. "It's safe to say that nobody can sustain an 80 percent market share in a consumer electronics business for more than two or three years. It's pretty much impossible." Privately, record company executives say they can't wait. Not because they want to see Apple stumble, but because a less dominant Apple means a more robust market for digital music. The company by itself cannot bring digital music to account for 25 percent of all music sales, as labels hope it will by 2009."

Huh? Apple must fail so the market can be more robust? What a load of garbage. Where do these "writers" come from? Sure, Apple won't budge on music subscriptions which the RIAA seems to really want, but consumers are the driving force and if they wanted subscriptions, Apple would provide it to them. To think that Apple is holding back anything is a complete misrepresentation of the facts on the ground. To blame consumers and Apple for the failings of Microsoft and their WMA allies shows the author doesn't know much about the market he is writing about.

Will Apple's share decrease? Probably, I can't imagine how even Microsoft could command 80% of this market. Will they fail? Probably not unless consumers vote with their wallets and Apple is too oblivious to catch on. For now Apple is driving the market and there isn't anything the RIAA, Piper Jaffray "analysts", or whoever wrote this horrible article can do about it.

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