iTunes

The iTunes Store, originally the iTunes Music Store, is a software-based online digital media store operated by Apple Inc. It opened on April 28, 2003, and has been the biggest music vendor in the United States since April 2008, and the biggest music vendor in the world since February 2010. It offers over 26 million songs, 700,000 apps, 190,000 TV episodes and 45,000 films as of September 12, 2012. As of June 2013, the iTunes Store possesses 575 million active user accounts, and serves over 315 million mobile devices, including iPods, iPhones and iPads. Source: Wikipedia (2013). iTune Store. Available: http://en.wikipedia.org/wiki/ITunes_Store. Last accessed 06/01/2014.

Having looked at these figures of the company, we can say that Apple-iTunes has replaced the old music business in the digital era. Since Apple were technology expertise and visionaries, they adapted the model that people were already using to obtain music instead of beating a dead horse. They saw the opportunity where the music industry saw a threat.

On the other hand, disruptive theories show that Apple has been a company able to change the market place and an entire industry through their technology and their software. Their marketing strategy has also been really key in order to understand their success. They achieve the popularity of iTunes by selling their hardware, the iPod. Reaching the masses through this affordable hardware and then gaining the market spreading their software to use the device, even though the computer not being a Mac.

iTunes Revenue:

- Estd. Revenue Structure:

Horace Dediu. (2013). The iTunes Value Structure. Available: http://www.asymco.com/2013/02/26/the-itunes-value-structure/.Last accessed 06/01/2014. iTunes reported rev...

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...rmore, they are also providing with better sound quality in their streaming service.

Finally, there are lots of other strategies that iTunes could adopt in their marketing strategy as they are in a Technology-creative space. They should take advantage of being in this position and try to engage more with the customers. One of the ways which they use to engage with customers is the iTunes Festival. This year they streamed the concerts for other fans who wanted to watch it from home. They could also add a chat to enable to comment on the live streaming in order to increase engagement from the people who couldn't attend the show. On the other hand the strategy I mentioned earlier would get to interact more effectively with customers, through implementing strategies from the games industry into the music industry. And thus add value to the new Apple service streaming.