Saturday, February 04, 2006

iPods, not iTunes, the moneymaker




I've heard the argument from someone, don't remember who, that iPods pushed iTunes songs the same way razors pushed razor blades -- ie., the device is essentially a way of getting you locked into the more lucrative, ongoing market.

Some stats from CNN's Business Blog show that to be ridiculous -- over the past 3 years, the average user has purchased $20 total ($7/yr) worth of songs through the iTunes store. 850 million songs have been downloaded; 42 million iPods have been sold.

P2P music trading networks still trounce iTunes by a 100:1 ratio.


# posted by salas : 10:55 PM  
Comments:
oh!
# posted by Manishas : February 05, 2006
 
On the other hand, the accessory business for iPods is huge(1 bill$/yr). Apple doesn't see all of that money, though, since many of the accessories are produced by third party vendors.
# posted by salas : February 05, 2006
 
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