Abstract

The case deals with iTunes, an Internet-based music retailing service launched by Apple Computers in early 2003. It provides detailed information about the changing dynamics of the music industry and analyzes the circumstances that led to the emergence of the online music distribution business. It also examines the impact of online music services on the industry in light of the problem of growing music piracy. The efforts made by several companies to launch legal services, and the reasons for their failure, are explored. The case then describes how Apple's iTunes provided a viable solution to the problems faced by the music industry and the customers. Finally, the case discusses the challenges facing iTunes, and its future prospects, in light of Apple's decision to launch its Windows version.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Structure and dynamics of the music industry.

Keywords

iTunes, music retailing, Apple Computers, 2003, changing, dynamics, emergence, online music distribution, music services, music piracy, Apple's iTunes, Windows version