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Yahoo's subscription-based music service should not affect iPod sales

Thursday, June 02, 2005 by: Mike Adams, NaturalNews Editor | Key concepts: IPod, Online music and Online music service

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Summary

Industry analyst Gene Munster said recently that iPod sales should not be affected by Yahoo's introduction of its subscription-based music service. Apple's success is largely due to having a compatible device for online music services, and could soon launch its own subscription-based music service. According to Munster, Apple will likely maintain its 80 percent share of the digital music market, in spite of other services offered by competitors.

Original source:
http://www.ipodlounge.com/index.php/news/comments/4254/

Details

  • Piper Jaffray senior analyst Gene Munster said today that he does not think sales of the iPod will be affected by Yahoo's new subscription-based music service offerings.
  • "We do not anticipate the market share of the iPod will be meaningfully impacted by the emergence of Yahoo!
  • and other music subscription services," Munster said in a research note obtained by iPodlounge.
  • "In addition, if subscription services become more successful, we believe that by year end Apple will introduce its own version of a subscription based music service."
  • "We have seen over the last two years that the success of online music services is driven by compatible devices," Munster said.
  • "As a datapoint, despite new music services in the past year, Apple has maintained its ~80% market share in the portable audio device market.
  • In other words, the risk to Apple is a killer new MP3 player, not a new online music service."
  • Munster also reiterated his that by the end of 2005 more than 35 million iPods will have shipped.

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