Steve Gillmor

Steve Gillmor: “Why don’t they get that the iPod broke the back of the record monopoly, just like the VCR broke the back of the projectionist’s union?

I agree. Why is so hard to understand that it’s all about “the model”? If you try to explain Apple’s success (or what will “kill” it) in the music (and now video) category, you’re hopeless if you try to isolate your explanation to one aspect of what they’ve done. “It’s the model.” It’s not just the iPod, it’s the iTunes/iPod/iTunes Store juggernaut. It’s the business model that allows them to generate high margins on selling iPods while squeaking by (if making money at all) on the distribution of music and video. Others may replicate the low-margin music and video distribution business — sell it, sell subscriptions to it, give it away for free, it doesn’t matter. Others may one day offer the next, coolest whatever playing device. But can Apple’s model be replicated? And by whom? It’s what Steve Gillmor said.

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