January 9, 2008
Europe to Become Level Playing Field; Does This Go Beyond Music?
Analysis of:
U.K. music fans to enjoy cheaper iTunes downloads | www.news.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Two Factors: 1. Apple will have less revenue. 2. Europe tells everyone we are one.
Analysis: On the surface this just looks like Apple will have to price its music the same through out, as they call it, the "Eurozone." The implications are that Apple will lose 10% revenue in their sales in Great Britain and that is the end of the story. But I see this in much broader terms and not only effecting Apple but other that sell across all of Europe.
What could be next:
Software - After all music is software will the regulators take this to the next step and say an OS or other software must have the same price in the Eurozone?
iPhone - Then must the iPhone be the same price for the service all over Europe?
Hardware from the same company be it Apple or Dell or HP or Phillips or even a toaster oven?
Winning this battle with Apple could open the door for the ones in the Eurozone working towards a one nation status of all of Europe.
Analysis: On the surface this just looks like Apple will have to price its music the same through out, as they call it, the "Eurozone." The implications are that Apple will lose 10% revenue in their sales in Great Britain and that is the end of the story. But I see this in much broader terms and not only effecting Apple but other that sell across all of Europe.
What could be next:
Software - After all music is software will the regulators take this to the next step and say an OS or other software must have the same price in the Eurozone?
iPhone - Then must the iPhone be the same price for the service all over Europe?
Hardware from the same company be it Apple or Dell or HP or Phillips or even a toaster oven?
Winning this battle with Apple could open the door for the ones in the Eurozone working towards a one nation status of all of Europe.
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