Comment Re:Wal-Mart vs. ITMS (Score 1) 436
I see Walmart as a real compoetitor to iTMS. Why?
Closed Format: iTMS uses a closed standard. What is the market share of Apple vs Windows computers? People want a compatible service.
Market demographic: You say that their target demographic is "low-income white Americans". I don't think that is entirely accurate, but for arguements sake, which is a bigger market segment. "low-income white Americans" or ipod owners.
Walmart is also very good at selling commodity products. They are not the world's largest retailer for nothing.
Walmart can maintain their price advantage. They have done it for several years in products that no one thought that they could. Their past experience shows this and it will be no different. If they decide to own the music download business, they can make it happen. Thether the margin is there for them to do so is another question.
Walmart is a major threat to iTMS and Netflix. Their shear size and ifluence give them a trememdous advantage.
As far as selling clean music only, there is plenty of "clean-music" out there for people to purchase.
Closed Format: iTMS uses a closed standard. What is the market share of Apple vs Windows computers? People want a compatible service.
Market demographic: You say that their target demographic is "low-income white Americans". I don't think that is entirely accurate, but for arguements sake, which is a bigger market segment. "low-income white Americans" or ipod owners.
Walmart is also very good at selling commodity products. They are not the world's largest retailer for nothing.
Walmart can maintain their price advantage. They have done it for several years in products that no one thought that they could. Their past experience shows this and it will be no different. If they decide to own the music download business, they can make it happen. Thether the margin is there for them to do so is another question.
Walmart is a major threat to iTMS and Netflix. Their shear size and ifluence give them a trememdous advantage.
As far as selling clean music only, there is plenty of "clean-music" out there for people to purchase.
