Friday, June 20, 2008
That is an amazing number. With a business that is only about 5 years old, that's about 1 billion songs each year, at $.99 a song; well you can do the math, a billion dollars in revenue a year. Add to that all the iPods and iPhones being sold and Steve Jobs has built an amazing business model. Oh, and what about digital videos. On top of all the song downloads, "The company added that iTunes customers are now renting and buying more than 50,000 movies every day, making iTunes the world's most popular online movie store." And movie revenue should increase their pockets even further.
Apple has done to Sirius and XM Radio, what the NAB couldn't; they have shown that a competitive model can negatively impact the satellite radio business. While their stock has been battered, and the FCC has not yet approved their merger, they have lost a step in effectively competing in the mobile entertainment space. This merger needs to be approved to enable Sirius to more effectively fight in this very competitive landscape.
Posted by Andy Hunn