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BW: Virgin may provide competition for Apple iTunes

updated 11:25 pm EST, Wed March 10, 2004

Virgin vs. Apple iTunes


BusinessWeek says that Virgin's forthcoming : "Virgin is the first potential challenger with branding moxie that can match even Apple's. The group, which posted revenues of $7 billion in 2003, also has far better natural distribution channels for digital music than Apple. The upshot? Steve, get ready to face the A-team. The entry of Virgin's online subsidiary, Virgin Digital, might change all that. Branson, chairman of the British conglomerate, is a master marketer. He has brought hip and fun to stodgy fields such as airlines (preflight massage, anyone?) and mobile-phone service.."


by MacNN Staff

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  1. gunnar

    Mac Enthusiast

    Joined: Feb 1999

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    03/11, 12:02am | report spam | Reply |

    International iTunes

    The only way Virgin will compete with Apple is if Apple keeps stalling with international stores. Otherwise it's an iTunes sweep if we see Europe, Japan and Canada stores by Summer/Fall.

  1. jakefans

    Registered User

    Joined: Mar 2004

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    03/11, 12:06am | report spam | Reply |

    What edge does Apple have

    I was concerned when I first read that Virgin was planning to enter the fray. The money and its ubiquitous stores in much of Europe makes it a force to be reckoned with.

    This could give Virgin a chance to expand the online music trade as an extension of its cellular phone services. Some have speculated that it could bring in billions of dollars potentially, though that may depend on whether Virgin adheres to the 99-cent pricing structure. (Currently, they charge two bucks for a polyphonic ringtone.) There may also be a question of whether phone sales can subsidize their music store, same as Apple has done with the iPod. How many users would rather pay $65 for a cell phone to transport sold music, rather than have to buy a $250 iPod Mini? From a hardware standpoint, the price of admission comes down considerably.

    Still, I can't imagine a cell-phone interface for selling music that could match the interface of the iTMS. I once owned a K7 Rave, and it 's LCD screen would be far too cramped to adequately display a list of albums, songs or artists. Maybe the Euro/Asian phones are better suited to the task? Anyone there have an opinion?

    Personally, I like the iTMS, though it's due in part to that I work in a Mac office, and the software comes with the computer. I don't have to jump through bureaucratic hoops that many PC users in the workplace have to suffer through just to install a new piece of software. The potential for music sales in the workplace could be worth watching once you divorce it from the company's network. (I'd also like to watch how it could hurt productivity at the office too. :)

  1. briandunning

    Fresh-Faced Recruit

    Joined: Jun 2003

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    03/11, 01:14am | report spam | Reply |

    I would love to see it

    I would love to see Branson and Jobs duke it out in a super-ego, whose-[ego]-is-bigger contest. :)

  1. PookJP

    Mac Enthusiast

    Joined: Jan 2001

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    03/11, 01:37am | report spam | Reply |

    Heh.

    "Virgin may provide competition for Apple iTunes."

    I'm just RIPE to take that person's virginity if her abstinence is going to cause Apple business problems.

  1. porieux

    Baninated

    Joined: Mar 2001

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    03/11, 04:24am | report spam | Reply |

    Virgin??

    Give me a break....

  1. droneseven

    Fresh-Faced Recruit

    Joined: Jan 2003

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    03/11, 07:47am | report spam | Reply |

    Virgin's...

    Their T-shirt should read:

    I PREFER VIRGIN'S
    online music store

    *wink*

  1. Deal

    Mac Enthusiast

    Joined: Apr 2001

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    03/11, 08:20am | report spam | Reply |

    Windows music files

    If they WMA files (or whatever the acronym is for Billy Gates Proprietary music ware) they will loose.

    If they go MP3 they can take a chunk.

    However, watch them come out with a PC only download service and instantly loose out on a portion of market. Not to mention they won't support AAC and this will keep anybody who already has or wants an iPod out of their store—go ahead, cripple your store before you get started!

  1. trenchcoat77

    Fresh-Faced Recruit

    Joined: Aug 2003

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    03/11, 10:10am | report spam | Reply |

    The word is "lose"

    Lose: to suffer deprivation of; to miss from one's possession or from a customary or supposed place

    Loser: one who is incompetent or unable to succeed

    Loose: not rigidly fastened or securely attached

    Edumacation: it's not just for presidents...

  1. SomeToast

    Senior User

    Joined: Jan 1999

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    03/11, 10:30am | report spam | Reply |

    Distribution

    Virgin has "far better natural distribution channels for digital music than Apple"? What channels? It's the internet fer chrissakes.

    Unless they're talking about selling music files in the stores (say, to burn to CD), which is what online distribution is designed to avoid anyway. If I have to go to a brick and mortar store, I'll by a "real" CD instead of some crappy WMA file, thank you.

  1. dnewlander

    Registered User

    Joined: Mar 2004

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    03/11, 11:24am | report spam | Reply |

    Branson & Virgin Music

    Sir Richard sold Virgin Music to EMI over a decade ago; the Virgin Group (airlline, cola, mobile phones) is completely separate. So this announcement doesn't lead to kiosks in the Virgin Mega Stores unless Branson works out a deal with EMI directly.

    The distribution channels would have to be related to their mobile phones.

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