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Slate: Apple Still Has Cards to Play Against Big Media

Much has been made lately of the occasional friction between Big Media and Apple. Labels and networks are developing their own delivery systems. However, in the long term prognosis, Apple isn't going away and still has plenty of cards to play, according to Slate.

Despite occasional defections and differences, Apple still accounts for 75 percent of online music sales. Apple remains unsuccessfully challenged. So the question to ask, according to Ivan Askwith, is when differences arise, is who needs whom more and what are Apple's options.

Option #1. Apple could back down. Apple is still the single most coherent place to obtain media, and Apple knows it. Apple doesn't need to back down because the opposition remains disorganized.

Option #2. Networks back down. They're looking for supplemental alternatives, but right now, the focus is on profit, and none are likely to give up the revenue stream from the iTunes Store.

Option #3. No one backs down. In that case, Apple can also explore new strategies. It could work more with artists directly. Apple could develop the Apple TV into a much stronger weapon by including a DVR capability and strongly integrate it to the iPods which have much stronger video capabilities than before. Apple's rapport with customers allows them to become a white knight, a consumer champion if big media were to harshly pull away from Apple. In any case, Apple has success, money and loyal customers. Moreover, Apple's not going away, Ivan Askwith concluded.

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iJack said:

member since 13 Jun 2001 with 313 posts, unranked, send him a message or view his profile

I think that Option #3 actually exists as a reality, will force Option #2, and that's OK with me - they've been screwing us for years.

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nealg said:

member since 22 Mar 2006 with 123 posts, unranked, send him a message or view his profile

The interesting thing that gets lost in all of this stuff is the fact that SJ is one of the largest, if not the largest, shareholder at Disney which has a lot of content to provide. Whatever happens, it will need to make sense for a company like Disney to go along. So SJ sits on both sides of the fence on this and is in a unique position to understand what is needed by both sides and is probably the reason why iTunes has been as successful as it has been. I don't think option 3 will happen unless it can be a win win situation for both companies. Maybe that is what SJ is trying to do behind the scenes at Disney and the other media companies. But with SJ's postion at Disney, it might allow him a little more room to experiment with Disney first if he can make a pitch that makes sense to the company as a whole.

Neal

Addendum:I went to the slate article and did find that they mentioned the SJ and Disney affiliation.

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