Finally and grudgingly, the labels likely agree with the Forrester analysts who say that CDs are a doomed medium. This might be their last chance to sell shiny discs before consumers move on to pure digital formats. In the future, MP3 players might even be sold much like cell phones are today–as loss leaders for service plans. Perhaps you’ll even get a free iPod in exchange for signing a contract to purchase a certain amount of music from the iTunes Music Store over the next couple of years.
Apple [Sept 8, 2003] announced that music fans have purchased and downloaded over ten million songs from the iTunes Music Store since its launch just over four months ago, averaging over 500,000 songs per week.
I’m not sure which is the bigger reality check: that the forever on-its-last-legs Mac just reinvented the RIAA cartel’s business model, making them a few million dollars in the process, or that a paltry 3% of the market can be generate that much revenue in so short a time. Annualized, that’s 26,000,000 purchases. Imagine what happens when the Windows version is released?