It's finally arrived: Europeans can now use the iTunes Music
Store. After quite a delay, Apple has set up its iTunes Music Store
so that people in the UK, France, and Germany can download its
tracks.
Those in the UK can download a single track for 79p; full albums
cost £7.99. While the British have been able to download
tracks from Napster for a while now, the cost was over £1,
and the files would not play on the iPod, making it useless for the
many people who've already bought an iPod. Other European download
sites generally charge at least 99p. (See Europeans
Pay More for iTunes Downloads for another perspective on
iTunes Europe pricing.)
Given that Apple is quite a bit cheaper, this sounds like the
iTunes Music Store in Europe will be a bit hit. Unfortunately,
users will only be able to download the music from the five major
record labels - the
independents are out. If this seemed like a big issue in
the US, it's a huge one in the UK, since independent music accounts
for about a quarter of British music sales.
Why have popular indy artists have decided to boycott the iTunes
Music Store?
The licensing terms. They feel that Apple could raise its prices
too easily without raising the cut the artists and labels get from
it. There has also been evidence that Apple is paying the major
record labels much more than it is offering the independents. Until
they work out a deal, artists such as Craig David and Badly Drawn
Boy won't appear on the iTunes Music Store.
The other question is how will the launch of the iTunes Music
Store affect sales of the iPod in Europe? While the iPod is already
very popular, selling over 100,000 units in Britain, some have said
the European launch of the iTunes Music Store could increase iPod
sales by 40%.
Given that the iTunes Music Store is the cheaper alternative to
other services and that Apple's files can't be played on MP3
players, it is very possible that people will buy iPods in order to
carry their purchased music with them.
I do have to say that it's about time Apple released the iTunes
Music Store in Europe. It's been far too long since it was released
in the US. [Editor's note: As an expatriate Canadian, I feel a
Candian store is also long overdue.] However, it is very
disappointing that Apple and the independent labels haven't been
able to come to some sort of agreement, as I think the fact that
there will be no independent music available (at least for the time
being) will affect the amount of sales on the service.
It is in both Apple's and the consumers' interests to negotiate
a deal as quickly as possible.
As for iPod sales going up by 40% with the launch of the iTunes
Music Store, I'm not sure if we're going to see that happen. Yes,
iPod sales will increase - by 40%, though? If independent music
were available on the service, perhaps. As it stands now, I think
that 20% might be a more realistic number.
The iTunes Music Store in Europe has a lot of potential. Being
less expensive and easier to use than other services in Europe, I'm
sure it will draw customers. There's also the fact that it's the
only service to work with the iPod.
All it needs are the indy labels.
