Apple Stays Fresh
The Financial Times reported yesterday that Apple is considering launching an “all you can eat” iTunes service that would allow customers to get unlimited access to the iTunes library in exchange for their paying a premium for iPods and iPhones. This mirrors Nokia’s “comes with music” offer the Finnish company announced last December in which folks will be able to get all of Universal Music library of music by paying a premium on top of the price of a Nokia phone. The FT reported that Apple might also be examining a subscription service in which iPhone customers pay a monthly charge as part of their phone bill to get unlimited access to iTunes tunes.
What’s interesting about this is that Apple is proving itself once again to be adept at shifting and innovating as the market moves. Rather than simply sticking to the business model that has made them the most successful seller of music downloads (by far), the black turtle-necked one has recognized that being the biggest in ANYTHING is no guarantee of future success. Consumers don’t like being taken for granted and if something new and shiny comes along, such as unlimited music, they might easily be tempted to dump their iPods or iPhones in favor of a cool new Nokia phone that gives it to them. And data shows that consumers would be willing to pay a $100 premium for as device to get unlimited music over its lifetime, or $7-8 a month in extra subscription charges.
To be a Punk Marketer you have to put yourself in the shoes of the consumer (however smelly they might be) and imagine what they want and need. As a starting point, assume there is no brand loyalty, even for a brand as “cool” and iconic as Apple, and that consumers are fickle and will change allegiance as fast as it takes to say, “but this ones cheaper!” Research is useful for that, but so is intuition and common sense, and Jobs is a master at understanding what will appeal to consumers emotionally without having to see proof of it. And the other thing that Apple consistently does is to set its own standards, not be governed by those of the industry. Each product they come out with doesn’t just improve on the competition, it redefines the market. Sure, the iPhone has its problems (most of of them because AT&T’s network isn’t good enough), but it has set the standard for all future mobile devices leaving all but rival Nokia, with its new N-95 phone, scrambling in the dust.
