Saturday, March 10, 2007

Strategy: iTunes Influence in Music Industry

The WSJ has an aritcle discussing the influence of iTunes in the music industry. The part that sticks out for me is how they don't follow the simple, obvious, somewhat crass business model of promoting whoever pays the most. While they are hardly "pure"--they definitely want something in exchange for front-page promotion--it is much more subtle and thoughtful than "payola". They look for exclusive material instead of cash.

So they are much closer to pure in terms of being a reliable taste-maker, instead of just another purveyor of unwanted commercial messages. Very effective strategy.

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