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iTunes Overhead Is 1 Billion Dollars – Google Says Ain’t No Thang

[ 0 ] September 14, 2010 |

And I thought buying beer for NRP meetings was high overhead!

Asymco reports that iTunes costs Apple nearly 1 billion dollars each year to run!

The details can be read in great length on the Asymco page. But the main point that I took away from the article is that pretty much only Google can take on a juggernaut like iTunes because it’s the only one that has the cash and brains and mobile phone access.

As reported from various sources, Google is planning to get into the highly lucrative market of digital sales/cloud music when they launch Google Music with the new Android 3.0 OS this fally-winner.

The big question for me is “What exactly will the cloud be like?” or rather, How well will it work?

One of the core assets of Google is their massive server farms which are designed to have lots of cheap servers located in many different locations, helping with fast music being streamed to Google Music. But what music? Who has signed on (Majors, Indies, you, me)?

Apple is already running the rumor mill furiously as they plan to release iTunes Live, a cloud based service which our friends at Gizmodo report will feature streaming music and movies from Apple’s servers to your computer and iDevices (a la Lala-ified iTunes), streaming your local media to other Apple computers and iDevices and wireless iTunes syncing to iDevices.

But with the massive growth of the Android OS (2nd in the world now) and the piles of cash that Google has, it looks like the battle for the cloud based music service is just beginning to heat up.


Take Control of Your Music
Voyno

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Category: Digital Music, Money

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