Apple’s first attempt to launch its own radio-streaming servie provides a triple play of opportunity for the company’s juggernaut in advertising revenue, download sales and market share, writes Forbes.
“As part and parcel of the latest version of iTunes, using iTunes Radio means that if a newly discovered song strikes your fancy, you’re only a click away from purchasing it outright,” the publication adds.
The launch of the radio streaming service is reportedly aimed at market-leader Pandora, whose service boasts of more than 72 million active users every month.
It should be noted that a few months ago the Californian tech giant announced it has 575 million active iTunes accounts. So the company does have the audience for its new service. Now Apple has to convince them to use iTunes Radio regularly.
Several famous brands invested up to $10 million to become iTunes Radio launch partners, a large bet that iTunes Radio will quickly become a force in the already crowded Internet radio industry, Ad Age writes.
“We’ve worked with all of them,” said Frank Cooper, PepsiCo’s CMO for global consumer engagement, “We looked at the the devices Apple has and the number of subscribers that they have overall on iTunes. Just in terms of infrastructure, we think they have the chance to be the biggest.”
However, Tony Giannini, senior VP-media strategy and marketing effectiveness at Macy’s, revealed to reporters his plans to continue buying ads on Pandora despite Macy’s being an iTunes Radio launch partner.
“Audio has for us always done very, very well. It’s something we use to support most if not all of our campaigns,” he said.
By the way, rumors claiming that the Cupertino company intends to launch its analogue version of Pandora service came a years ago.
Three insiders, familiar with the matter revealed at the time that the iPhone maker worked on a new service which would be able to compete with Pandora Media by sending streams of music customized to users’ tastes.
“The company has in the past contemplated and abandoned other interactive features, including a Spotify-like service that would have let users rent unlimited amounts of music for a fixed monthly fee,” reported The Wall Street Journal.
“But people familiar with the current talks say they appear to be more serious than those previous tentative inquiries.”
Like Pandora, the new Apple’s service was reported to feature advertising, carried through Apple’s iAd platform.
Meanwhile, iPhone and iPad fans are complaining that the just released update of the famous operating system can’t be installed.
Many of them took to Twitter and Apple’s support site to reports that when attempting to install the long-awaited update, which went out earlier today.
According to the letters, sent to Apple’s official support, the downloads stop, with a warning error pop-up that says the “software update failed.” Others are saying they cannot connect to the iTunes Store to update apps.