<![CDATA[Gizmodo: itunes]]> http://tags.gizmodo.com/assets/base/img/thumbs140x140/gizmodo.com.png <![CDATA[Gizmodo: itunes]]> http://gizmodo.com/tag/itunes http://gizmodo.com/tag/itunes <![CDATA[Apple Is Now in the Streaming Music Business]]> The New York Times is reporting that Apple's agreed to buy the music streaming service LaLa, according to "a person with knowledge of the deal." Apple's now in the streaming music business.

Interestingly, the Times says that LaLa went to Apple to be acquired, and what Apple's after is LaLa's engineers, with their cloud service-y brains.

Apple's official response is that they "buy smaller technology companies all the time, and we generally do not comment on our purpose or plans." Hmmm. [NYT]

Previously: NY Times reporter Brad Stone says that Apple has agreed to acquire the streaming music service LaLa as rumored, and the NYT is currently updating their story.

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<![CDATA[Anybody Can Create an iTunes LP or Extras Now]]> As promised, Apple's released the specs for iTunes LP and Extras, with templates, guides and testing materials to create them. Until it goes automatic next year, submission is manual process, and yes, Apple has to approve your work. [Apple]

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<![CDATA[CoPilot Live GPS App Is $20 During Thanksgiving Special]]> ALK is dropping the price of CoPilot Live North America from $35 down to $20, starting tomorrow. Since CoPilot was already our favorite non-subscription budget GPS app, this is nice to hear.

We're not sure when the sale ends—maybe ALK hasn't decided—but if you have at least a marginal interest in GPS apps for your iPhone or Android, it might be time to plunk down some cash for it. $20 ain't free, and CoPilot's looks sometimes verge on gaudy, but it's a competent, frequently updated app, and now a steal compared to even the cheapest subscription GPS app. [Android Version; iPhone Version; iTunes Link]

Update: This offer is extended until 9am Eastern Time on Tuesday, December 1st.

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<![CDATA["Uffizi in a Touch" Brings Cover Flow to Renaissance Masterpieces]]> The central guideline of museum going has long been "do not touch." Soon, the Uffizi will flip that rule on its head by allowing visitors to flick and pinch their way through the museum's works of art.

The Uffizi Galley, a museum in Florence boasting one of the world's most famous collections of Renaissance art, is readying touch screen stations where visitors will be able to browse the museum's collection in a Cover Flow-esque format. The stations, dubbed "Uffizi in a Touch," were developed by an Italian company called Centrica and will be loaded with 100-megapixel shots of the Uffizi's most famous works which include Boticelli's The Birth of Venus and Titian's Venus of Urbino.

The novel technology, rolling out in December, will presumably have one of two effects: cheapening the Uffizi's masterpieces or elevating the elusive properly tagged iTunes library to work of art status. [CultofMac]

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<![CDATA[Paul McCartney Doesn't Understand the Internet]]> What's Paul McCartney's doomsday scenario? Someone, somewhere, somehow manages to leak the Beatles' music onto the internet, where it will be stolen by everyone, all the time. This must be prevented! Notice a problem there? Yeah, it gets worse.

A few days ago, we found out that Apple Corps and EMI would finally release the Beatles' catalog in a digital format. It's not that we couldn't have just purchased CDs and ripped them—that's what everyone's been doing for years now—it's just that it felt like progress. In reality, it was just the near-random actions of someone who has no idea what's going on, at all. From the Guardian via Ars, Paul McCartney's view on selling the Beatles' music online:

I met [EMI's chief executive] on a plane once. I said: "What is the problem? I want to do it, we all want to do it." And he explained that in the deal that we want, they feel exposed. If [digitised Beatles music] gets out, if one employee decides to take it home and wap it on to the internet, we would have the right to say, "Now you recompense us for that. And they're scared of that."

Just to be clear, Paul McCartney says he wants to sell music online, but he—and his record company—are worried that someone could conceivably download it, upload it back to the internet, and open the floodgates to piracy. As opposed to just uploading the higher-quality digital files you're selling to people on Apple-shaped USB drives right now, or on CDs, more than a decade ago. McCartney expects an agreement by which he would be compensated if people share his music, as if it would be somehow correlated with the release of Beatles' tracks online, which EMI—no stranger to releasing music online—is scared of because it's insane.

Poor Paul! Someone should tell him, you know, about all the wapping. [Ars Technica]

UPDATE: From anonymized (not anonymous) source who researched similar subjects in the past, a possible explanation:

It's not the music for sale they're worried about but the raw remasters (this is why McCartney specifically refers to an employee potentially uploading the music). I don't know how much you've read about the making of [Beatles Rock Band] but they went to incredible lengths to protect the masters. It was only towards the end of the project that Harmonix received the (heavily encrypted) music they needed; before then, Apple Corps had been sending them "dirtied-up" copies of the music just in case it was intercepted halfway.

The real threat from McCartney and the other Beatles (and er, spouses of Beatles) is that if, somewhere in the process of turning their music into iTunes-friendly files, the MASTERS get leaked... then they will sue the pants off of EMI. And EMI allegedly said they are in such a precarious financial position that they do not want to take the risk of getting hit by a lawsuit that could take the company down.

An alternate theory, which still doesn't quite work. If masters leaked to the internet, presumably they'd be encoded in something like FLAC at best, which would be indistinguishable from the files the Beatles are OK with selling on USB drives right now. Or if this refers to the recording's component parts, like the ones used to create Rock Band, still: This seems avoidable. And in either strain of paranoia: Paul McCartney doesn't understand the internet. (And possibly other things, too!)

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<![CDATA[Remainders - Stuff We Didn't Post (and Why)]]> Trade in Your DVDs, Plus a Couple Bucks, and Get the Blu-ray Versions...Steve Ballmer Acknowledges Apple's Gains, Remains Cocky...Sanyo to Build Houses Powered by Solar Energy and Li-Ion Batteries...Sony Announces Vague "iTunes-Like" Store on PlayStation Network for Books, Movies, Music...

Trade in Your DVDs, Plus a Couple Bucks, and Get the Blu-ray Versions

Warner set up a DVD to Blu-ray exchange program called, appropriately enough, DVD2Blu, as sort of a more-tempting version of its HD-DVD to Blu-ray version. The problem is, it's not actually that great of a deal; you're limited to Warner movies, obviously, but it also costs $8-10 per DVD, plus $5 shipping, for the exchange. You might actually be better off just hitting Best Buy or Walmart or whatever and looking for sales, since DVD2Blu could cost you 18 bucks plus the agony of waiting for your new HD copy of The Wedding Singer: Totally Awesome Edition to arrive. [Engadget]

Steve Ballmer Acknowledges Apple's Gains, Remains Cocky

Microsoft held a shareholder's meeting this morning, led by the always-dynamic Steve Ballmer, and an interesting question came up: Why does Microsoft have such a lousy reputation among certain demographics, like, say, upper-middle-class college kids? Ballmer admitted that Apple's been seeing some gains that, while small, are a clear sign that Microsoft has room for improvement, either in marketing or product positioning. It's a pretty clear-headed statement from Ballmer—after all, he notes, Microsoft still has an insane marketshare, even in the high-end consumer demo, so despite Apple's visibility, Microsoft doesn't exactly have cause for concern. That level-headedness is why this story's in Remainders: Where's the explosive, frothing-at-the-mouth, prone to Bidenesque gaffes Ballmer we all know and, um, know? [TechFlash]

Sanyo to Build Houses Powered by Solar Energy and Li-Ion Batteries

Sanyo, considered Japan's "greenest" electronics manufacturer (sort of like being the best-dressed homeless person), is about to start building solar-powered, lithium-ion-based homes in its native country. The houses are all equipped with LED lighting, solar-powered water heater, all that stuff. They'll be a little pricey, at around $355,000—an equivalent non-green house would cost $62,000 less, although the Sanyo houses come with a $30,000 government subsidy. It's in Remainders because it's Japan only, and because I don't understand enough Japanese to learn any more about it. [Crunchgear]

Sony Announces Vague "iTunes-Like" Store on PlayStation Network for Books, Movies, Music

Sony announced the tentatively named Sony Online Service today—it's described as an "iTunes-like" service on the PlayStation Network, offering movies, music, and books, all media for which Sony also sells accompanying hardware. It'll also allow users to upload their own video, and will probably have support for independent app development later on down the road. We don't really know much else, like, say, a launch date or pricing (or even a final name), so it winds up here, alone in the dark corner of Gizmodo we call Remainders. [AppleInsider via Engadget]

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<![CDATA[iTunes Enters the Web Browser with iTunes Preview]]> This probably won't affect your day to day life (yet), but it's an interesting development nonetheless. iTunes now allows you to window shop through your web browser.

Called iTunes Preview, you can now access any iTunes music page through your browser by selecting "Copy Link" and pasting it Firefox, Safari, IE, whatever you use.

At the moment, Apple isn't doing very much with iTunes Preview. Sure, you can view music (videos and other media not yet online), but to buy or preview anything, you're redirected into iTunes software. In that way, iTunes Preview really lives up (or down) to its humble name—it's a non-interactive preview of iTunes content for people who haven't loaded the software (as well as bloggers who'd just like to link a webpage rather than an app). But is it so crazy to imagine a day when Apple allows us to buy music free from the confines of their software?

Yes, yes it is. [iTunes Preview via AppleInsider]

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<![CDATA[Hahahaha! Blockbuster Renting Movies on SD Cards! Hahahahaha! From Kiosks!]]> Oh, I hope whatever exec came up with this idea scores a huge bonus. Blockbuster is piloting a new program that will load a DRM'd movie rentals onto an SD card from a kiosk. The future!

So say you're at the airport. You want to rent, I dunno, some movie that wasn't good enough to see in the theater. You just format a spare SD card filled with vacation photos you'd forgotten to back up (it doesn't appear they give you a card, but I could be mistaken), pop it in the machine, select a movie, pay $4 or so, and then have the film loaded on your card, a la ticking time bomb, with DRM.

And what can't you do with an SD card? I mean, it plays in my iPhone...wait...I mean my Blackberry...wait...

Mini SD and Micro SD—those are the cards that most of our mobile devices will take (if they take any at all)! In case no one told you, Blockbuster, we can't play this shit back on our digital cameras.

(Granted, netbook owners and some laptop owners will be able to utilize the standard.)

Ah Blockbuster, you've arrived just in time to ignore the growing popularity of iTunes/Zune Marketplace syncing, 3G streaming and in-flight Wi-Fi all while offering your service on a medium less convenient than DVD. But don't worry, I'm not angry. You're just hurting yourself. [Fast Company]

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<![CDATA[It's Almost 2010 and CDs Are Not Dead Yet?]]> I've started to buy vinyl records again. It's not because of the sound. It's the touch and the pretty pictures. Obviously, vinyl is not why CDs are dying. Zoom-zoom in, digital boys and girls.

What surprises me about these facts and figures—apart from iTunes skyrocketing again after the introduction of variable pricing—is the fact that CDs are not completely dead yet. They are clearly going down, but I had this mental image in which all of those round mirrors were destroyed, melting like Dali clocks in a desert of indifference. [Mint]

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<![CDATA[Apple Wants iTunes to Replace Your Cable Box for 30 Bucks a Month]]> Apple's apparently pitching to networks a subscription plan that would deliver all your TV shows through iTunes for $30 a month, with the goal of launching it next year.

But don't hold your breath on it happening yet: Peter Kafka has "yet to hear of a single programmer that has made a firm commitment." As he points out, while networks are constantly looking for new revenue, like those asshole aliens in Independence Day moving from world to world consuming every natural resource, they're nervous about the idea for a lot of reasons.

A lot of it has to do with the icky, sticky relationships between networks and cable operators, where everybody's worried about losing out as people start to watch more and more TV content online, not in their living room—where streaming video eats up bandwidth, and advertising revenues aren't nearly as rich (which is why Hulu wants to figure out new ways to get you to pay).

While these little complications might slow the process down, the exodus is inevitable. There's no stopping this. The internet is the new cable: Netflix, Hulu, BitTorrent. Apple might not get to launch it in a few months, but it will happen. Just give it time. The actually crazy part, if you ask me, is that the Apple TV might even live up to its name. [Hulu]

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<![CDATA[Apple and Palm: The iTunes Syncing Fight Is Officially Dumb]]> OK Palm, it was cute the first time you cracked iTunes to sync with the Pre. And Apple, I guess I can understand why you'd want to keep control over your software. But really guys? Still? You look silly.

Even Palm, who used this feature as a symbol of their underdog status, repeatedly defied a notoriously litigious behemoth and just wanted to give their users an easy way to sync music? Yes. It's a clear stunt to garner sympathy as a scruffy up-and-comer, it's in defiance of published USB standards, and Apple is clearly never, ever going to stop patching this "bug." You've got bigger things to worry about.

And even Apple, who's just trying to maintain control over a proprietary media player, and who has every right to do so? Yes. To users, the updates look weirdly protective, and make the company seem dickish, which here, they kind of are.

It's like watching children locked in a yes/no argument over whether or not licorice tastes good, and both parties should just leave it. I don't say this because I prefer Palm users to be locked out of iTunes or something—it's just that that's where things stand right now, it's the status quo and devoting any more energy to this protracted fight would be a waste. Apple can ignore this, because it shouldn't matter to them, and Palm should tell Prefolk to sync with doubleTwist, because that works—now even with the Pixi—just fine. Thanks in advance! [PreCentral]

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<![CDATA[iTunes 9.0.2 Is Here With Apple TV 3.0 Love and Not Much Else]]> As if you didn't see this coming, iTunes 9.0.2 is here, just in time for Apple TV 3.0 (the third strike?). The other changes are just iTunes 9 additions, padding out the otherwise boring list:

iTunes 9.0.2 adds support for Apple TV software version 3.0, adds an option for a dark background for Grid View, and improves support for accessibility. [Ed. note: The dark background option is a bigger deal than it might seem]

iTunes 9 comes with many new features and improvements, including:

• An improved look and feel, including a new Column Browser for easily browsing your artists or albums, movies, TV shows, and more.

iTunes Store has a brand new look, with improved navigation for quick and easy exploration.

• iTunes LP and iTunes Extras create unique experiences that feature exclusive interviews, videos, photos, and more - available with select album and movie purchases on the iTunes Store.

• Home Sharing helps you manage your family's iTunes collection between computers in your home. iTunes can automatically transfer new purchases, or you can choose just the items you want.

• Genius Mixes are created for you by iTunes and play songs from your library that go great together.

• iPod and iPhone syncing now allows you to organize your iPhone and iPod touch home screens directly in iTunes. Syncing is now also more flexible, allowing you to sync individual artists, genres, or TV show and Podcast episodes.

• iTunes U items are now organized into their own section in your iTunes library.

• Sync with iPod nano (5th generation), iPod classic (Fall 2009), and iPod touch (Fall 2009).

• iTunes 9 also includes many other improvements, such as HE-AAC encoding and playback, more flexibility with Smart Playlists rules, simpler organization of your media files inside an iTunes Media folder, and more.

Deja vu, am I right? [Apple]

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<![CDATA[Apple TV 3.0 Can Play iTunes LP and Extras Like a Real Video Box]]> The updated iTunes terms & conditions has a new paragraph under the iTunes LP section spilling Apple TV 3.0—namely, that it'll finally support iTunes LP and Extras viewing.

Why Extras—which are like DVD extras, with bonus clips, interviews and photo galleries, but for iTunes movies—is just now on its way to Apple TV is sorta mystifying, even for their most neglected product. (What does Apple have against its tinier boxes?) It's like, the thing Apple makes expressly to plug into your TV, where you might want to watch those things.

Since Apple TV 2.0, the last major update to the sad little box happened almost two years ago, maybe, just maybe, there's more to Apple TV 3.0 than just Extras and iTunes LP. Or you know, not. [AppleInsider]

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<![CDATA[100,000 iPhone Apps and Counting]]> iPhone app tracking site AppShopper—from Arn of MacRumors—now counts over 100,000 apps approved by Apple. 101,843 apps at this moment, to be precise.

Only about 93,000 have actually hit the App Store so far, but still, it's pretty incredible. Expect some crowing via press release when they formally hit 100,000 apps in the store. A month ago, Apple hit 2 billion downloads. And it was just about a year ago this mosaic, celebrating a mere 10,000 apps, was created. Wonder what it's gonna look like a year from now. [App Shopper NextWeb via Twitter]

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<![CDATA[How Will Google's Rumored Music Service Work? (Updated: Oh, Like This)]]> Earlier this year, Google launched an iTunes-style music download service in China. The twist? All the music was free. Now, Techcrunch says a US launch of a Google music service is imminent. Could it be free, too? Doubtful.

Google's already got a decent music search engine in place, and they've got plenty of experience designing iTunes-like client apps like Picasa, but let's not get ahead of ourselves—we don't even know what this thing is, how it'll be supported, what kind of content it'll have, or how much it'll cost. Consider their Chinese service, Top100.cn: The free, all-you-can-eat model makes sense there, where download piracy rates approach 100% and music industry revenues, despite massive listenership, don't even touch $90 million dollars. in that context, Google's projected $14.6 million in ad revenue counts as a victory.

But here, the music industry sees ten billion dollars pass through its hands on a yearly basis, and people still (occasionally!) pay for music. Even assuming higher per-click ad values, it's hard to see how Google could just give full downloads out for free. Maybe it could stream, like Spotify? Or, you know, just sell music, like iTunes? Techcrunch doesn't seem to have much in the way of leads on this, but they leave it here:

We're still gathering details, but our understanding is the service will be very different to the Google China music download service that they launched in 2008. That service, which is only available in China, allows users to search for music and download it for free.

Place your bets in the comments.

UPDATE: Peter Kafka at AllThingsD has some sources of his own, all of whom seem to want to pee on our parade:

Sources describe the service, which will be called "One Box", as a refined set of answers for music queries. The idea: Punch in, say, "Madonna", and you'll be presented with one or more songs, which may be partial clips or full-length versions, then guided to other sites where you can purchase the music.

He fingers iLike and LaLa as the primary music providers. All in all, this just sounds like a new search interface—not a new iTunes, Spotify-killer, or anything else worth getting overly excited about. Oh well! [Techcrunch, AllThingsD]

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<![CDATA[The App Store Effect: Are iPhone Apps Headed for Oblivion?]]> It's uncanny. When known software gets repackaged for iPhones and iPod Touches and passes through the hallowed gates of the App Store, something happens: Almost invariably, it gets cheaper. Waaay cheaper. Good right? Well, not always.

The App Store is a strange new place for developers. Veterans and newcomers engage in bareknuckle combat, driving prices down to levels people wouldn't have imagined charging just a few years ago. Margins drop to razor-thin levels while customers expect apps to get cheaper and cheaper, but with ever increasing quality and depth.

For developers, for other software platforms and potentially for the increasingly fickle customers themselves, it's uncharted, and treacherous, territory. But the most bizarre thing of all is—in an effort to keep people in the App Store, and to prevent competitors from getting a toehold in the mobile app business—Apple's charting a course straight into it.

"The App Store is a very competitive environment," says Caroline Hu Flexer, co-founder of Duck Duck Moose, an indie developer of children's edutainment apps like Itsy Bitsy Spider. "As an independent developer without a large PR budget or well-known brands, it can be very challenging, and you're pretty much at the mercy of Apple."

The Problem


Most iPhone apps had no life before the App Store, and currently have no life outside it. But with those that did, you start to see a pattern. App prices could reasonably be expected to fall over time—an older game is worth less to customers than a newer game, and with other types of software, a late-stage price drop is a great way to scoop up late adopters. What's strange, though, is how prices dramatically collapse after hitting Apple's store.

Two weeks ago we flagged some bizarre differences in pricing between equivalent PSP and iPhone games. Big titles, like Tetris and Fieldrunners, were inexplicably cheaper on the iPhone, even in cases where it was executed better. This didn't make a whole lot of sense. As it turns out, it had nothing to do with Sony and the PSP, and everything to do with the App Store.

As you can see in the chart above, many apps and services take a price dip in the App Store. Zagat's premium To Go guides cost a healthy $4/month for Windows Mobile phones, but sell for just $10/year on the iPhone. CoPilot 7, a navigation app, used to set you back a full $200 on a Microsoft-badged device (later lowered to $100); the much-improved version 8 sells in the App Store for a measly $35 today. The premium version of WeatherBug runs $5 for people who happened to buy BlackBerry's touchscreen phone, but just $1 for anyone who bought Apple's. VR+ voice recorder, a full-featured dictaphone app, runs $30 on BlackBerry, and an incredible $2 in the App Store. So how can this little App Store, itself a subsection of the iTunes store, squeeze so many developers to the point of near-suffocation?

Update: The BlackBerry Weatherbug app boasts a few extra features over the iPhone app, including push notifications. This accounts for some of the price difference

The Economy

Some of this is pure Econ 101: The store serves a massive, captive audience that's pre-trained to spend money in iTunes. The promise of higher volume makes it easier for developers to lower prices, which they use, along with interesting features and clever marketing, to set themselves apart from the competition.

If things work out just right, the App Store can move a lot of software for you. Spread your lower margins over tens of thousands of sales, and your $2 app could make just as much, if not more, than your old, slower-selling $30 app did. The App Store recently passed the 2-billion-download mark, and there are likely well over 50 million App-Store-ready devices in peoples' hands right now. A vast majority of these downloads—averaging an insane 35 per device—will likely have been free. Only Apple knows just how many. But even if just 5% of the 2 billion downloads were paid for, that's one hell of a market.

It's true that prices are falling as more and more iPhone and iPod Touch owners enter the market. But prices won't stop falling. And more and more developers from all over the world are submitting apps, too, so fewer devs are guaranteed visibility. Not all of the people investing time and money in their products are reaping the return they (reasonably!) expected.

Newsweek's exposé on the end of easy money at the App Store goes a long way toward making the case against going all-in as an iPhone dev. Not only are development costs high, while success appears to be basically randomized. But the story doesn't explain exactly what happened to make the situation so grim.

The Culture

Giz stories rage about app prices all the time, and in your own private way, so do most of you. Buying $1 songs and $2 TV shows has given us an expectation that apps should be cheap, no matter what their use. The glut of free apps you see filling out the app charts every day doesn't help either. Software is worth less to us now, even though we use it more.

I spoke with Steve Andler of Networks In Motion, the company that makes Gokivo. It's an app that we savaged for its introductory price of $10 a month, which then dropped to $5 a month a few weeks ago.

Andler explained reaching the unrealistically low costs with one thing: diminished features. Their app pulls up-to-date map, traffic and POI data from NIM's servers in real time, meaning that—beyond developer costs—they have to constantly pay for new, fresh data to pass on to their customers. But even at $5 a month, it's just about impossible for Gokivo to compete with an app like MotionX GPS Drive, which is $3 a month, or $25 per year.

Andler says there are subtle differences in services offered, which is true—MotionX, for example, doesn't yet read street names aloud when it gives you directions—but your average user probably doesn't know this, and there's a good chance MotionX might add it in an update later on, as their market share and revenues grow. But the damage is done. The app-buying customer is spoiled: As far as we are concerned, turn-by-turn GPS apps should now cost no more than $3 a month, period. This is the new retail, and it's weird.

Loren Brichter, father of Tweetie, is used to getting yelled at by jaded app shoppers. He's charging $3 for Tweetie 2, an update—but a whole new version, really—of his well-established Twitter app. Offering the software as a free upgrade isn't realistic for him:

I priced Tweetie at $2.99 not based on how much work I put into it (it would have been more), or to try and undercut other apps (it would have been less), but simply because I felt like $2.99 was a reasonable price to pay for a Twitter client. Impulse purchase, but not bargain-basement. I never liked playing pricing games either—a popular pastime of other App Store devs. It's always been $2.99, and will probably always be $2.99.

His decision wasn't easy. And even though his app is the darling of the tech press, and has hundreds of great user reviews, he's being lambasted for charging three measly dollars for a high-quality app that people will use again and again and again. Before the App Store, a complaint this petty wouldn't have even made sense.

Apple

From the outside, it appears that Apple is encouraging a race to the bottom. The top 10 lists in each App Store category—one of the only ways for an app to get any meaningful amount of iTunes visibility—are almost exclusively the territory of low-priced impulse buys, and are hard to cling onto for more than a few weeks at time. Flexer, of Duck Duck Moose, says she's experienced it firsthand:

The ranking by volume (as opposed to revenue) on the App Store seems to drive the prices of apps down. Aside from being featured by Apple, exposure of an app is dependent on its ranking in the top lists, so developers lower prices to obtain a higher ranking.

This is echoed and amplified by the makers of Twitterific, an app that, in a bid to stay competitive, saw its price fall from $10 to $4, despite active development and a growing featureset:

While these changes represent perks for users, it also means that sustaining profitability for a given piece of software in the App Store is nearly impossible unless you have a break-away hit.

And if things don't change?

Myself and others like me will have no choice but to focus our development efforts elsewhere.

With yesterday's announcement that Apple is allowing free apps to include in-app purchases, things just got even more tumultuous. Depending on how this is handled, the top "free" apps could all be paid apps in disguise. Either that or the paid app rankings will be dominated by free-on-a-trial-basis teasers. In either case, the rankings open themselves up for opportunistic abuse, and the highest goal for any honest, talented app developer—to just crack that list—just became more uncertain.


This is disastrous for developers, even if it's mostly incidental, and a function of Apple trying to sell apps like they've been selling music for years, despite a totally different set of product types and customer needs. But Apple's effect on pricing goes well beyond incidental. At least in some cases, Apple calls the shots.

A high-profile dev team that has sold a number of apps in the store since the earliest of days, and who accordingly wishes to stay anonymous, told us as much. When they approached Apple with their first app, they had a price in mind. Apple told them it was too high, and that they'd need to cut it to succeed. They chopped it in half. Even then, Apple told them to "be careful."

This company made out fine, since they were in a position to adapt. However, to play the volume game, they had to restructure their entire philosophy around a pricing structure that, just months before, would've seemed ridiculous.

With over 2 billion data points to graph and filter to their heart's content, Apple understands the App Store climate better than anyone else possibly can. As such, their advice is probably golden. Which is okay if you're a relatively nimble, single-purpose company, and you can afford to risk restructuring everything you do around their store, and your costs can be covered at whatever price you evidently need to set to sell at a certain volume. But you'll just want to keep in mind that their advice is self-interested. Apple wants cheap apps, to keep people buying them, and to keep other stores firmly in the second tier—and they're not afraid to say it. From Apple's last quarterly report to investors, a line they've been echoing since the store opened:

[Apple] also expects competition to intensify as competitors attempt to imitate the Company's approach to providing [digital app distribution] seamlessly within their individual offerings or work collaboratively to offer integrated solutions...While the Company is widely recognized as a leading innovator in the personal computer and consumer electronics markets as well as a leader in the emerging market for distribution of third-party digital content and applications, these markets are highly competitive and subject to aggressive pricing.

You don't need to look back any further than the launch of the iTunes music store to see an Apple that will do everything it can to push other peoples' prices down for their benefit. Of course, they can't really fix prices for apps—they're not songs or movies, and each one does something different—but they can nudge like hell.

What Happens Now

So what does the App Store Effect mean, right now? In the short term, we'll get lower prices. This is great. But in the long term, it might not be sustainable.

The promise that sales volume will make up for the rock-bottom prices you need to charge just to be seen in your app category seems increasingly hollow, and to put it bluntly, if developers don't have a chance in hell of recouping their fees, they'll stop trying. And I'm not talking about 99-cent iFart app spammers here—I'm talking about big players who already make money selling software. If the navigation companies, the big game studios and the premium content providers can't thrive in the App Store, they'll have to leave; even playing in Apple's sandbox threatens and undercut their (sometimes much more crucial) product lines elsewhere.

And don't forget, Palm and Android fans, this App Store Effect sends ripples well beyond the App Store. Customers expect to see functionally identical apps priced the same way across platforms, because to us, that's what makes sense. Can devs really afford to port an app to the webOS to sell to the tens of thousands of Pre owners, when they're expected to tag it with iPhone prices, calculated for a base of millions? Whether by Apple's design or totally by accident, everyone who doesn't own an iPhone will suffer for it.

The App Store Effect illustrates a new kind of economy, and it's not going to go away. In fact, it's going to get worse. Developers will either adapt, die or leave. But where will they go? Until there are 50 million Android handsets and 50 million Pre offspring out there, the rest of the mobile software world is pretty much screwed.

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<![CDATA[Apple to Indie Labels: iTunes LP Is Out of Your League]]> With a higher price than regular albums, no lossless audio and virtually no device support, iTunes LP seems like a hard sell. Turns out, it might be lame for musicians too—at least, the ones without platinum records. Updated

I spoke with Brian McKinney, who runs Chocolate Lab Records, a smallish label out of Chicago. As someone who actually makes records, he saw potential in iTunes LP, and after seeing how incredibly simple the actual LP files are, started looking into making some himself. It didn't go so well:

I contacted the digital distribution manager at my label's distributor. He had a conference call with an iTunes rep and asked how we go about putting an LP together. He was told that LPs aren't being offered to indies and that there are only about 12 LPs being offered right now. They also said that iTunes charges a $10,000 production fee for them as well. So that pretty much edges out the indie market completely.

Deflecting criticism that it's just another way to squeeze a few extra dollars out of customers, Apple pitches iTunes LP as a way to bring back "the visual experience of the record album" (Which they helped kill in the first place. Penance, or something!)

But if they're charging ridiculous, prohibitive fees and only letting a few major labels take advantage of this—you know, the ones that iTunes needs to keep happy to be a viable music store, not the ones that might actually make something artistically interesting with LP—that romantic cry for the return of the album (it's more like the return of the Digipak, anyway) sounds a cynical and disingenuous. More to the point, it'll forever doom LP to gimmickry, because, well, the Dave Matthews Band can only carry you so far. —Thanks, Brian!

Update: Apple just gave us this comment, which seemingly contradicts some of what was said above:

We're releasing the open specs for iTunes LP soon, allowing both major and indie labels to create their own. There is no production fee charged by Apple.

So, with the open specs in place it seems like indie labels (or any other label) will be able to create iTunes LPs as much as they want, and not at a mandatory $10k a pop.

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<![CDATA[DoubleTwist's Amazon MP3 Store: One Less Reason to Bother With iTunes]]> It's impossible not to love the concept of doubleTwist, the all-devices-welcome quasi-iTunes music manager, but up to this point the software has been pretty barebones. Now, things are gettin' ser-i-ous: doubleTwist has a built-in music store, courtesy of Amazon.

To put this into context, doubleTwist debuted not just as an alternative music manager for people with or without Apple players, but as a giant, coded jab at iTunes, Apple, and the way they do business. After launch, DVD Jon, who created doubleTwist, spent a few months waging a small-scale PR war, hanging Apple-baiting banners in San Francisco and parodying their famous "1984" ad. With Amazon MP3 store integration, that ad's promise—to "bring you choice"—has come true, and it's worth a thousand PR stunts

As has been the case with every other aspect of doubleTwist, the music storefront looks like a simpler version of the one in iTunes. Navigation and searching are about as simple as they could be, as are downloads, which only take a few clicks. The whole experience will be familiar to anyone weened on Apple's bloated beast, apart from a few things: Amazon's album prices are often lower than iTunes', and of course, you can immediately sync any music you download—there's only music, by the way—to practically any device you own, be it a Pre, a BlackBerry, a Sandisk, an iPod, or whatever.

The first version is Mac-only and tied to Amazon's US store, but Windows (and international) versions are on their way. [doubleTwist via Techcrunch]

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<![CDATA[Apple and Eminem's Music Publisher Settle iTunes Lawsuit]]> Eminem's music publisher have settled their lawsuit against Apple. They claimed that the record label didn't have a right to strike a deal with Apple. Or something like that. Whatever. Please, insert Kayne West joke about Eminem being a bigger douche than Steve Jobs here. Thanks. [USAToday]

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<![CDATA[Spotify Adds Offline Music Caching to Its Desktop Player, Makes iTunes Look Prudish]]> Not being allowed to have music subscription service Spotify is now officially the worst thing about being an American: Subscribers will soon be able to listen to unlimited music offline, just like in the murders-everything-else Spotify iPhone app.

The feature, which lets users designate any or all of their content to be available offline, is only available to the £9.99/month or £120/year premium subscribers, but effectively hands them unlimited music, available at all times, for a flat fee. The mobile app is still the showstopper here—we've seen a few all-you-can-eat DRM music services before—but, you know, still, insult to injury. Our only consolation? Spotify thinks they can launch in the US before the end of the year, though I'll be eager to see if they can get as cozy a licensing deal as they found in the UK. [Techcrunch]

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