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Analyst: Starbucks Deal Win-Win; Best Buy Will ‘Grow the Overall Pie’
Wednesday, October 4th, 2006 at 3:00 PM - by Brad Cook
Forrester Research analyst Ted Schadler on Thursday conducted an interview with MarketWatch in which he said that the addition of Starbuck's music to iTunes is win-win and that Best Buy's new foray into online music will "grow the overall pie," rather than take market share from Apple.
During the approximately five-minute clip, Mr. Schadler commented: "iTunes has the digital music market, I won't say locked up, but they're very strong." Adding the Starbuck's Hear Music collection to Apple's online store helps solidify that position. He also pointed out that the Starbuck's brand's strength should bring more users to iTunes.
As for Best Buy's launch of an online music store in conjunction with SanDisk and Real, the analyst noted that most music will be sold online in the future, so he saw the announcement as setting up the retailer for that eventuality, as opposed to trying to steal market share from Apple now. He expects Best Buy to help grow the overall digital music market with an integrated solution, similar to iPod+iTunes, which he said is what consumers clearly prefer. He noted that Plays For Sure is a failure.
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