A Strategy for Breaking Into a Competitive Market
With Apple's integrated iPod/iTunes product dominating the digital-download market, competitors have found it challenging to stake a claim. So what makes MTV, Verizon Wireless, and RealNetworks think they can lure customers to their new Rhapsody America download service (which draws upon two unsuccessful ventures: MTV's URGE music store and Real's Rhapsody subscription service)?
The financial details have yet to be released, but the partnership has big plans for fighting iTunes:
- They'll focus on mobile downloading capabilities, which iTunes does not offer.
- They'll stay competitive in regards to storage capability. Verizon's executive VP and CMO John Stratton said V CAST-enabled mobile phones' 4GB of storage capacity will increase to 8GB by the end of the year, making it competitive with iPhone's highest capacity product. A 16GB V CAST phone should be available by mid-2008.
- Their strategy will capitalize on selling music that can connect with multiple devices (Apple's copy-protection technology limits songs bought on iTunes to its own iPods and iPhones.)
- Rhapsody America will improve the older Rhapsody service by expanding upon the subscription model, offering songs for sale per download, just like iTunes does.
- The partnership will launch an aggressive marketing campaign, positioning Rhapsody as the music service of choice for MTV Networks' MTV, VH1 and CMT.
The music industry and digital downloading worlds are evolving. Apple's customer satisfaction has declined, and the market's ready for some competition. It looks like Rhapsody America is well-prepared to provide that.
(Market Image by miss rogue)