case study: itunes for k-12
TRANSCRIPT
iTunes for K-12Giorgio Sironi (Nest Group)
Description
Service: K-12 category of a famous online podcasts platform
Audio and video in periodically updated feeds
Crowdsourced podcasts creation
Distribution via freeware proprietary program
Users: teacher and students
Main actors: content creators and Apple
Description
Didactive objective
Provide a categorization of content to help navigation
In order to add value to the iTunes platform
Business model
Business model
iTunes is free to download
Podcasts cannot be sold according to Terms of Service
Where is the money?
Selling DRM-free music (low margin)Profits go to Apple and record labels
Selling iOS devicesProfits go to Apple
Selling a service/product where podcasts are a complementary goodProfits are retained
Homepage
Homepage
Provides navigation
Of categories
Of appropriate podcasts
Other filters
Popularity
Alphabetic
Example of podcast
Example of podcast
Description
List of episodes
Number
Description
Date
Price, which must always be free
Customer ratings
Related content
From the same publisher
No web fruition
No web fruition
Proprietary, free of charge software
No HTTP link to the podcasts
Gives access to the iOS (iPod/iPhone/iPad) market
Platforms
Windows 32/64 bit
Mac OS X
Software
Software
Features
Library management
Music purchasing
Playlist
Device loading
Only way to
Access podcasts content
Load content on iOS devices
Marketing
Marketing
Downloading the software is an additional step and must provide value
Single platform to access all multimedia content
Mandatory integration with iOS devicesiTunes can load content on an iPod
In-application purchase (of songs and movies)
The only web-based component is the directory for discovering podcasts
It is replicated inside the application
Continuously links to the software
Strengths & weaknesses
Network effects from the diffusion of iTunes
Integration with iOS devices
Content cannot be soldNot that the market for digital content allows for a good price margin
Conclusions & take-aways
The platform itself does not allow third parties to make a profit directly, unlike for iOS applications
Categorization of content is necessary and can be performed by humans
Selling a complementary good (devices) is a profitable strategy if you commoditize the primary one (iTunes)
Paid services or products that exploit free podcasts
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