iTunes Associate Program?

Tuesday, October 21, 2003 | 07:03 AM

Since we’ve been looking at the business models of so many streaming, peering and music industry start ups, I thought it would be worthwhile to review a few of the more interesting aspects of Apple’s iTunes Music Store.

There are a number of very creative flourishes to the on line music store. The allowance account is a clever touch, enouraging parents to avoid RIAA litigation by giving their kids a few bucks a month download songs.

But the twist I really liked was the iTunes Link Maker. This is an ingenious touch designed to tap into the peer rated aspect of P2P. Anyone with iTunes installed who clicks this link, will be taken to that song in the iTunes store. If you haven't downloaded iTunes, the link takes you to Apple's iTunes page. Sharp!

Here's an example: Check out Jet's Are You Gonna Be My Girl:    

I smell an "iTune Music Store" associates program coming on. I wonder if Apple can pull off the level of customer relationship that Amazon has done so well.

Tapping into the viral aspect of music sharing shows that Apple has seriosuly considered this business model. I suspect that the music store will be a significant part of Apple's model going forward. By morphing into a hybrid content/hardware company, they get out from under their limited legacy platform.

Of course, you cannot really discuss this intelligently until you've downloaded the program:    

UPDATE: 10/21/03 2:37pm Apple's iTunes Music Store Team responds to my email query:

"Thanks for your note. AT THIS TIME, we have no plans to create a revenue-sharing affiliate program for the iTunes Music Store." (emphasis mine)


The iTunes Music Store Team

Tuesday, October 21, 2003 | 07:03 AM | Permalink | Comments (4) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference iTunes Associate Program?:


1) they provide an infrastructure for direct positive consumption externalities, which create massive search economies. Long way of saying that people file-share to find other music they like, which is a very significant cost for listeners otherwise.

2) they provide an implicit form of *insurance* - a kind of guarantee that offsets the risk people face in buying music under moral hazard (a sketchy contract from the labels). I think this is the second big reason people file-share - it's a simple form of risk-sharing.

3) they blur the boundaries between the firm and it's user/consumer base. business models like this create winner-take-all markets.

I put up a longer piece yesterday which is related, arguing that music today is fundamentally about risk, and new business models that work must offer some kind of insurance to offset the risk.(see link:

Posted by: Umair Haque | Oct 21, 2003 1:42:20 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™