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Apple?s itunes, Lazy Competitors, Lazy Governments

by Skeeteron_mypeter / August 16, 2006 9:00 AM PDT

Dear Buzz Out Loud Gang,
There has been enormous legal wrangling from the Swedish, Norwegian and French governments as well as a few others regarding the seemly fundamental architecture of the itunes music service and its connection with the ipod music device. Although a clear argument could be made for the interoperability of these two technologies the clear focus of these discussions should point to why competitors failed to act when Apple was developing their business platform.

Many of Apple's competitors had the opportunity to release revival technologies to compete with itunes and ipod but many simply waited to see if the business model would work. This left Apple with enormous infrastructure and R&D cost in developing the itunes and ipod platforms in order for them to be successful. Now various governments are asking Apple to change their business model to permit other devices to use the technology.

Instead of spending enormous amounts of money litigating this issue, why have these governments not use their resources to foster a competing technology? Since the real issue is protecting the rights of material created by various content producers and artist, it would seem to be more prudent to invest in more technology that insures that competing platforms to the itunes business model perform the same function while offering the ease of use functionality.

Consumers use itunes because it is simply easy. A competing technology to itunes could have the same ease of use functionality but this would require more research to be spent in this area. Instead of actually trying to create a competing technology, some governments have chosen to react by simply using legislation against Apple in order for them to open their business model to more competitors even though it was Apple that invented the platform.

In my opinion, legislation should not be placed against Apple's business model simply because companies and governments are too lazy to research a competing technology.

That is my opinion...what's yours? Wink

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Well Put
by daveworld / August 16, 2006 1:33 PM PDT

Countless other DAPs and online stores for consumers to choose. It's a shame that a company (Apple) can start a business model from scratch only to have government tamper with it once it becomes successful.

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A Government must not become a compettitor
by cardsbb9 / August 16, 2006 1:51 PM PDT

Govedrnments have the power to tax. This gives them an unfair advantage in compettition. (This is why private schools have not flourished as they should have, for instance.)

The last thing we need is government 'getting in the business' of creating a new business model.

As you have stated, AAPL has already proven that the business model works. MSFT will do the same thing they did twenty-five years ago and come out with software that does not tightly-couple with hardware and still provide good-enough capability in the marketspace of iTunes.

MSFT will, once again, prove to AAPL (the hard way) that companies should not hog-tie the consumer to hardware in order to get (good-enough) software. This will leave AAPL holding the bag on less than 10% of the market, once again.

Poor AAPL, they never seem to learn.

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