Saturday, May 3, 2008

Another iTunes victory

Apple this week announced same-day download movie sales from 20th Century Fox, Disney, Warner, Paramount and a few other studios. (It’s also possible to buy movies directly from AppleTV, for the few people who own one). The movies cost $15 each. This even includes cooperation from its recent nemesis Universal.
Some speculate that it will help digital downloads by others like Amazon and Netflix. I’m not sure I buy it — should Apple not try to grab market share and create switching costs, for fear it would grow the market and help its competitors. But analysts have to write about something.

The iTunes Store is not invincible: nothing is. But attempts by suppliers to reduce Apple’s buyer power keep failing.

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