Apple (Corps) Tries To Avoid Apple (Inc.) Again This Holiday Season

(MoneyWatch)  The Beatles' Apple Corps is offering the band's entire digital catalog this holiday season - on Burt Ives-style green USB sticks. And yet, The Beatles catalog is still unavailable on the number one music outlet, iTunes. Apple Corps has managed to be innovative and outdated in one fell swoop. It is delaying the inevitable migration to iTunes.

Due out December 7, The Beatles USB Stick (that's the name of it) will have all the band's music, 13 documentaries, linear notes, photos and other extras. Compatible with the PC or Mac, it will use "A specially designed Flash interface" for navigation.

The problems here are numerous, starting with the decision to force millions of users to put in a USB stick to listen to their music. In the age of Box and Hulu, USB sticks are going the way of the compact disc. It is particularly ironic for an eco-hostile digital product to be green in color.

Furthermore, even the AARP audience that grew up with The Beatles directly are among the millions using iTunes, Rhapsody or another comparable music service. Younger folks, of course, are creating digital-only music catalogs.

The elephant in the room here is Apple (Corps) ongoing rift with Apple (Inc.). Apple (Corps) will need to get over its control issues sooner or later -- and, if later, it will be by force. For now, its going to charge just under $300 for a "digital" set that could have already easily been selling like hotcakes through iTunes. Imagine if it was released in conjunction with the huge 9/9/09 event with the remastered CDs and The Beatles: Rock Band?

Apple Corps is truly missing great opportunities because it's ignoring one fact: It would take a force majeure for iTunes to disappear anytime soon.

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