Itunes

In the last few weeks, we saw all kinds of reactions from the newsmedia industry about the publisher solution offered by Apple and Google.

What is your conclusion? What will your media company do now?

Let's guess: you still don't have a conclusion or a plan yet, right? What will you do about it? Wait to see what other companies will do before deciding?

OK, let's stop for a moment and think together. This may help change your decision.

Let's think about the music industry using the technology approach.

We all know that the music industry faced similar challenges to what the newsmedia industry is facing today. But they are a few years ahead.

They were caught by surprise in 2003 when Apple launched the iPod and iTunes. But what exactly happened?

The music industry didn't know how to react to the new technology and possibilities. They were struggling with decreasing revenues, people were getting content for free on the Internet, companies were shrinking, there was panic among the teams and uncertainty about their future. And to make it worse, Apple offered them a 70/30 deal that they never heard about before. And all the songs would be sold for US$0.99 each.

The music industry didn't like the offer, the business model, or the pricing strategy but they were in such a delicate position that they just accepted everything.

Now, more than 10 billion iTunes downloads later and revenues that paid around US$7 billion to the music companies, you hear from some music executives things like "iTunes saved the industry" or even "we wouldn't be here if it was not for Apple, which organised the digital revolution of the music industry."

What did Apple do exactly?

Apple released iTunes and the first version of the iPod. Then, a new version, and then a new one.

Then, Apple released the iPhone, and then a new version of the iPhone, and another one.

Three years later, Apple released the iPad and now the iPad2.

And all of those devices work with iTunes which got bigger and more powerful than ever. Today, iTunes accounts for 70% of worldwide online digital music sales, has 160 million members and sells apps, movies and much more.

Regardless the device, Apple users are hooked on an "environment" called iTunes that allows them to interact and buy. It's easy,