Why iTunes will fail unless it offers Subscriptions
I am an Apple fan boy. I am the definition of an Apple fan boy. But iTunes is eventually going to be the mobileme of the media industry. Let's start with music. What's Apple's top competitor Music wise? Pandora? Spotify? There's a lot of them and they all have one thing in common. They are all subscription based. Really the only music retailer that makes you buy 1 song at a time is iTunes. Let's say I listen to 12 new albums a month. I can pay $9 to listen to them as much I want on a competitor, or pay $10 each album and own it (making a total of $120). It's obvious what i am gonna choose. So Music obviously needs a subscription based service.
Now let's talk Movies and TV Shows. I currently am subscribed to Netflix and have xfinity, meaning that I never pay for TV Shows from iTunes. I download the free apps for those services and watch almost all TV Shows for free. There's one problem with these services. The Movie library sucks. If iTunes whole Movie and TV Show library was available for a monthly fee I would totally sign up, and it's probably more profitable. Think about it, I probably buy 2 TV show episodes a month making $4. But if I were to pay $10-$16 it would be 4x more money for apple and publishers.
Yeah, this is not a prediction. It's gonna happen, and I imagine with the launch of the iTV sometime this year or next. And then in the future were all gonna talk about that clunky, slow, hard to manage music manager iTunes.