A big bite of Apple?

Vodafones new music subscription service to its 17m customers offering 1 million tracks for £1.99 per week is a massive upscale of the war in telecoms and almost certainly retaliation for not winning the bid for the iPhone, which has gone to O2.

Allegedly Apple wanted 30%+ of the revenues from each customer.

Can they make money at this level via their deal with Music Station? In the scheme of things they may not care, particularly if it disrupts the market and erodes customer churn or adds to subscriptions.

I've yet to establish if downloads will come out of the data allowances, or even if the music can be switched from the phone to other devices. Still its going to shake things up in the mobile market.

posted by John Wilson @ 10:48 PM Permanent Link newsvine reddit


At 8:11 PM, Anonymous Jason Regan said...

As I understand it though, as soon as you cease paying your £1.99 subscription fee, you lose everything you've downloaded, so maybe it's not such a good deal after all. Call me a style victim, but I'm also a firm believer in the intangible appeal of Apple; their products have a quality that makes me want them regardless of what they do. Vodafone just doesn't have that emotional pull, so I wouldn't write Apple off yet...


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